A GUIDE TO STATE MILK MARKETING LEGISLATION IN THE UNITED STATES

"

Prepared and Publishe d by

LOUISIANA DAIRY STABILIZATION BOARD an antitrust enforcement agency"

c . James Gelpi Director-Attorney

January, 1978

2843 Victoria Drive Baton Rouge, Louisiana 70805

A GUIDE TO STATE MILK MARKETING LEGISLATION IN THE UNITED STATES

Prepared and Published by

LOUISIANA DAIRY STABILIZATION BOARD " •.. an antitrust enforcement agency"

c. James Gelpi Director-Attorney

January, 1978

2843 Victoria Drive Baton Rouge, Louisiana 70805

DAIRY STABILIZATION BOARD

" ... an antitrust enforcement agency"

Dear Friends:

This publication, prepared by the Louisiana Dairy Stabilization Board 1S a current digest of milk marketing legislation of the fifty states of the United States. It is designed to serve as a convenient source of comparative inform­ation for those persons interested in the present extent of state milk regulation.

Appreciation is expressed to the Internatiorial Association of Milk Control Agencies and the many state agencies throughout the United States for their cooperation and assistance in the preparation of this legislative guide. Ac knowledgment is also due Mr. David W. Arceneaux and the staff of the Louisiana Dairy Stabilization Board for their services in preparing the manu­sc ript.

The new Dairy Stabilization Board is continuing to seek and find ways of carrying out its dutie s under the law in a manner that is consistent with efficiency, good judgment and common sense. The task of compiling this guide is just another example.

The new Dairy Stabilization Board will continue to protect the free enterprise system through the prevention of antitrust activity in the interest of the entire public and will do so in the manner prescribed by law.

2843 VICTORIA DRIVE BATON ROUGE, LA. 70805

504-389·7507

Herb8rt Kramer Chairman

Ben H. Grayson Vice-Chairman

Vernon Toups, Jr. Secretary

Member1 Mack Abraham

Lyle DegelO$ Teddy Gabb. Sr. A. G. Magee, Jr.

Polk TinlW

C. JamBS Gelpi Dlrec10r -Attorney

TABLE OF CONTENTS

STATE: PAGE: STATE: PAGE:

Alabama .......... ' . . ' 1 Montana .............. 43 Alaska ................. 3 Nebraska ............. 45 Arizona ............... 5 Nevada ............. . . 46 Arkansas. ... . .......... 7 New Hamphsire ....... 49 California ............. 8 New Jersey .......... 50 Colorado .............. 10 New Mexico .......... 52 Connecticut ........... 12 New York ......... . ... 53 De1awar'e . ............. 14 North Carolina ........ .5 5 Florida . ..... . .... . ... 15 North Dakota ...... . ... 57 Georgia ............... 16 Ohio . . ............... 60 Hawaii ................ 17 Oklahoma ............. 61 Idaho ................. 19 Oregon .............. 63 Illinois. .... .. .... . .... 21 Pennsylvania ....... . . 65 Indiana .............. 22 Rhode Island .......... 67 Iowa .................. 23 South Carolina ......... 69 Kansas. ............... 25 South Dakota . . ........ 71 Kentucky ......... . ... 27 Tennessee ............ 73 Louisiana .. . ......... 29 Texas ................ 75 Maine ................ 31 Utah ... .... . . . ...... , 76 Maryland .... ' .... , ... 33 Vermont . .. . . .... .. . , 77 Massachusetts .. . ...... 34 Virginia, ............. 79 Michigan .......... . .. .3 7 Washington ............ 81 Minne sota ............ 38 West Virginia ....... ' 82 Mississippi ........... 40 Wisconsin ............ 83 Missouri. . . . . . . . . . .. 41 Wyoming ............. 85

Appendix A: State Milk Control Agencies ... . .............. . ..... 86 Appendix B: State Milk Price Control Legislation ................ 88 Appendix C: Preliminary State Statistics, 1975 .... . ............. . 90

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1. ALABAMA

The only Alabama legislation which controls the marketing of milk is Ala. Code tit. 2, Sec. 2-13-40-2-13-66.

A. Synopsis: Alabama, a state of 3,600,000 people, ranks thirty-fifth in the production of milk in the United States. The present milk marketing legislation has remained substantially unc hanged since 1939. The Ala bama Dairy Commis­sion, which,replaced the Alabama Milk Control Board in 1971, administers the present comprehensive price and trade practice provisions.

B. CortrolAgency: Alabama Dairy Commission.

1. Number of members: Five (5).

2. Method of selection: Four members are appointed by the governor. The Commissioner of Agriculture and Industries is an ex-officio member.

3. Qualifications: The four appointed members must be persons " ... who are not engaged directly or indirectly, in the milk business. II No two can serve from the same congressional district, Commissioner of Agriculture excepted.

4. Terms of office: The appointive members of the A DC serve four year, staggered terms.

C. Price Regulation:

1. Prerequisites: Before the ADC may fix prices, it must investigate reasonable charges and costs in the industry and hold public hearings in the affected milk shed. The ADC may take evidence under oath, consider matters within its knowledge, and deliberate privately.

2. Scope: Upon a written finding of facts, the ADC may fix by official order reasonable costs and charges for transporting, hauling, bottling, packaging, distributing, and marketing of milk atwholesale and retail. The ADC may also fix the minimum and/or maximum prices to be charged for milk sold at whole­sale or retail within the milk marketing area. Minimum prices to be paid to pro­ducers may be fixed by the ADC. For milk produced in excess of what the ADC determines is needed for fluid milk consumption, a lesser minimum price may be fixed. Finally, minimum producer prices may be controlled by an economic formula adopted by the ADC.

3. Termination: Fixed charges and prices are subject to modification by the same method by which they are initially fixed. If an economic pricing formula is used to fix minimum producer prices, those -prices change automatically as the indices of the formula dictate, without the requirement of public hearings.

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D. Trade Practice Regulation: The ADC may adopt and issur reasonable regulations establishing ethical trade practices among licensees.

The ADC has authority to prevent: (1) false or misleading advertising, (2) mosrepresentation of quality of product or service, (3) acts intended to subvert the milk marketing legislation, and (4) sales promotlon schemes by which prizes are given for the purchase of milk or which make a lot of the sale of milk.

E. Enforcement:

l. Regulations and records: The ADC has authority to adopt and enforce rules and orders which have the force of law. The regulations may require licensee s to keep records and file regular reports with the ADC.

2. Investigations: The ADC is empowered to enter places where milk is handled or books, records, or documents are kept. It may inspect the premise s and documents and make copie s of relevant material. All information obtaine d under this provision must remain confidential.

3. Sanctions: A violation of a legislative provision or lawful order, rule, or regulation of the ADC a misdemeanor. The ADC has authority ro institute any legal or equitable action necessary to enforce compliance with the legislation. In addition, the ADC may suspend or revoke the licenses of its licensees. If a license could b e revoked for violation of a legislative provision or lawful order, rule, or regulation, in lieu thereof, the ADC may levy a fine of not more than $500 per offense. Each day during which a violation occur s shall constitute a seperate offense.

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2. ALASKA

The only Alaska legislation that controls the marketing of milk is Alaska Stat. Sec. 03.17.010-.100.

A. Synopsis: Alaska, a state of 352,000 people, ranks fiftieth in the produc­tion of milk in the United States. The present milk marketing legislation has remained substantially unchangt:rlsince 1962. The Director of the Division of Agriculture, Departm.ent of Natural Resources, with the aid of the Alaska Milk Advisory Board, administers the present trade practice regulations.

B. Control Agency: Alaska Milk Advisory Board.

1. Number of members: Five (5).

2. Method of selection: Members of the MAB are appointed by the Dir­ector of the Division of Agriculture, Department of Natural Resources.

3. Qualifications: Each appointee must be an Alaskan producer, handler, or retailer. Not more than one handler or one retailer may serve on the Board at one time.

4. Terms of office: None.

5. .Major duties: The MAB is an advisory agency designed only to aid the director of the division of agriculture. The director is authorized to imple­rnent the legislative provisions through milk marketing orders applicable to all producers and handlers in the region designated by the director. Before a milk marketing order can be issued, changed, or repealed, two-thirds of all pro­ducers voting, the producers who produce two-thirds of the volume, and handlers of at least one-half of the volume in a marketing area must approve. Despite disapproval by handlers, a milk marketing order can be implemented if the Commissioner of Natural Resources approves.

C. Pri ce Regulation: Alaska law affirmatively state s: " ... [n]o action is authorized ... if it (1) is intended to or does fix prices at an artificially high level. ... II

D. Trade Practice Regulation: The director is authorized generally to is sue marketing orders designed to eliminate unfair competitive practices. The director also has broad authority to regulate the distribution and sale of milk.

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E. Enforcement: The MAB is given special authority to receive and report to the director, violations of milk marketing orders and to assist the director in collection of data.

1. Price lists: Handlers and producers are required to post the prices at which milk will be sold by them.

2. Inspections: The director has the authority to inspect books, accounts, papers, records, and memoranda of a handler or producer. He may subpoena production of these documents and may question under oath any agent, officer, or employee of a producer or handler.

3. Sanctions: Any violation of the statutory provisions or a milk mark­eting order is a lYlisdemeanor.

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3. ARIZONA

The only Arizona legislation which controls the marketing of milk is Ariz. Rev. Stat. Sec. 3-601 ~ ~

A. Synopsis: Arizona, a state of 2, 200, 000 people, ranks thirty-third in the production of milk in the United States. The present milk marketing legislation has remained substantially unchanged since 1951. The State Dairy Commissioner administers the present trade practice regulations.

B. Control Agency: State Dairy Commissioner.

1. Method of selection: Appointed by the governor.

2. Qualifications: The commissioner must be I' • •• a person expe­rienc ed in the dairy industry ... I I

3. Term of office: Two years.

C . Price Regulation: Arizona law does not provide for the regulation of milk prices.

D. Trade Practice Regulation:

1. Disc rimination: Milk buyers are specifically forbidden to un­justifiably engage in price disc rimination by buying milk at a lower price in one locality than that paid in another locality.

2. Other regulations: Arizona law prohibits restraint of open competition.

E Enforcement: The attorney general and county attorneys of the state are authorized to aid the commis sioner in the enforcement of the milk law.

1. Regulations and records: The commissioner has authority to issue rules and regulations to enforce the legislative provisions. The law requires that records be kept by manufacturing and distributing plants de­tailing the quantity, source, and sales of dairy products handled.

2 . Investigations: The COITlITlissioner may order the production of papers , books, and records relating to any matter under investigation only upon the concurrence of a county court.

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3. Sanctions: The commissioner has authority to revoke license s for failure to comply with the legislation. Violation of any provision of the milk law is a misdemeanor.

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4. ARKANSAS

The only Arkansas legislation which controls the rn.arketing of rn.ilk is Ark. Stat. Ann. Sec. 70-123 to 125 and 70-701 et seq.

A. Synopsis: Arkansas, a state of 2, 100,000 people, ranks thirty-fourth in the production of rn.ilk in the United States. The present rn.ilk rn.arketing legis­lation has rern.ained substantially unchanged since 1955.

B. Control Agency: None.

C. Price Regulation: See Section D, Part 1, below.

D. Trade Practice Regulation:

1. Sales below cost: It is unlawful for processors and distributors of rn.ilk at wholesale or retail to sell at a price less than cost plus 4 percent unless the purpose for the deviation is to rn.eet an lIequivalent corn.petitive price" in the county. An equivalent corn.petitive price is that price charged by a corn.petitor who sells at least 5 per cent of the rn.ilk in the county. Cost include s the value of any econorn.ic advantage obtained through rebates, refunds, corn.rn.issions, discounts, corn.bination sales, or other special services or privileges.

2. Discrirn.ination: No person engaged in the business of buying rn.ilk rn.ay unjustifiably discrirn.inate in price between different localitites of the state.

3. Gifts and loans: Processors and distributors rn.ay not furnish free equiprn.ent. If equiprn.ent is sold, the price rn.ust reflect actual cost plu s in­stallation charge s if applicable.

4. Other regulations: It is unlawful for a vendor who displays rn.ilk at specified prices to lirn.it the quantity sold to any purchaser as long as the supply is irn.rn.ediately available.

E. Enforcern.ent: Violation of any trade practice regulation is a rn.isdern.eanor. Individuals harrn.ed by any violation of the legislative provisions are authorized to seek an injunction and treble darn.ages. Recovery of treble darn.ages in not authorized in case of price discrirn.ination.

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5. CALIFORNIA

The only California legislation which controls the marketing of milk is Cal. Agric. Code Sec. 61301- 62731 (Deering).

A. Synopsis: California, a state of 21,185,000 people, ranks second in the production of milk in the United States. The present milk marketing legislation has reITlained substantially unchanged since 1935. However, the entire law was reviewed and updated effective January 1, 1978. The Director of the California Department of Food and Agriculture administers the present comprehensive price and trade practice provisions.

B. Control Agency: Director of the California Department of Food and Agriculture. The director1s ITlajor duties include the designation of m .arketing areas, the issuance of licenses to distributors, the registration of producers, the appointITlent of local or regional advisory boards where nece s sary, and the e stablishrnent of equitable distribution systeITls through equalization pools.

C. Price Regulation:

1. Initiation: The establishITlent of any ITlinimuITl prices requires the iITl plementation of a stabilization and ITlarketing plan. Such a plan cannot be implemented unless 65 percent of the producers and the producers who produce at least 65 percent of the voluITle of ITlilk in the area affected by the plan approve.

2. Prerequisites: Public hearings ITlust be conducted prior to iITlple­mentation or aITlendment of any stabilization and ITlarketing plan or price regulation .

3. Scope : The ITliniITluITl price to be paid to producers by distributors (and :mininmITl wholesale and retail prices) for ITlilk ITlust be included within any stabilization and ITlarketing plan. The plan may also provide for maxiITlum allowable charges for marketing and transportation services.

After January 1, 1978, the Director ITlay establish miniITlum wholesale and ITlinirnum retail price s on a temporary basis after deterITlining that conditions of severe market disruption exists.

4. Termination: The decision to amend or terITlinate a stabilization and marke ting plan , afte r notice and public hearing, rests with the director. Howeve r, the suspension of ITlinimum wholesale and retail price s is strictly governed by statute Q

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D. Trade Practice Re~lati0n...:

Sales belo~ cost: Sales below cost by anyone other than producers are forbidden.

2. Discrimination: Discrimination in price or service between custcmers who purc~like quantities under like conditions and who are similarly situated is forbidden.

3. Gifts and loans: Gifts to a customer for the purpose of securing or retaining ·milk business is illegal. Loans of money to wholesale customers are also forbidden.

4. Di~S0-::nts and reb_ates: Whether in the form of money or otherwise, secret rebate s, secret refunds, and unearned discounts are illegal.

5. Combination s.~: The granting of a combination sale to a whole sale customer or consumer in order to secure or retain business is an unlawful practice.

6. ~:: re[ulatio~: California legislation regulates the advertising of milk, the furnishing of milk equipment by members of the dairy industry, false statements by competitors, and the use of collusion, misrepresentation, threat, intimidation, or boycott to commit unfair practices.

E. Enforcement:

1. Regulations and records: The director is authorized to adopt regulations to properly administer th;;I-;glslation. Manufacturers and distributors m.ust keep records of their transactions.

a. Price lists: Every distributor must file his price schedule with the ~ a confidential basis. Other distrebutors can meet such prices provIded an amended price list is filed within 24 hours after the prices are matched.

b. .!::.~.r:.ection~ The director has authority to enter any place where milk or records and documents are located. Records may be copied but any information obtained must remain confidential.

3. Sa::;c!.ions: The director has authority to seek injunctions, recover civil penalties, and revoke licenses. Violation of any of the milk marketing statutes is a misdemeanor.

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6. COLORADO

The Colorado Agricultural Marketing Act of 1939 controls the marketing of milk in Colorado Rev. Stat. 35-28-101 to 123.

A. Synopsis: Colorado, a state of 2, 534,000 people, ranks thirty-second in the p~ction of milk in the United State s. The pre s'~nt milk marketing legislation, The Colorado Agricultural Marketing Act, has remained substan­tially unchanged since "it wa;-e~acted in 1939 .. The~nunissioner of Agricul­ture adrrlinisters the present trade practice regulations.

B. Control A~~: Commissioner of Agriculture. Under 'The Colorado Agricultural. Marke!.0$l._~c~of 19~.2.' milk is one commodity among m.any that the Comm.issioner is authorized to regulate byuse of marketing orders and marketing agreem.ents Each m.arketing order m.ust provide for the eSiiblishnlent of a control board whose m.embers are appointed by the Com.­m.issioner from the industry. Each control. board ha s adminstrative duties on~y. Marketing orders .:md marketing agreements can regulate the quantity of D1.ilk w'hich may be proc ess e d, distributed, or otherwise handled during a spe cified p er iod.

C. Price Re~ula~ Colorado legislation does not provide for the fixing of milk pric8 s J but does provide for the posting of such prices and, indirectly, for a requirement tb <lJ, '1: sales be m.ade at the prices posted.

D. Trade ~~.!Ze~l~..!~<::.~: Trade regulation in Colorado is accom­plished through m.arketing agr e em.ents, which are effective upon those persons signing the a greenle nt; or, through m.arketing orders which are issued by the Comn lissioner of Agriculture after a referendum on the question of its approval, in which those affected participate. Either a nlarketing agreem.ent or a nlarketing order r.nay regu late the lab eling, branding, nlarketing, and packaging of milk and may contain provisions for the lim.itation and preven­tion of unfair m.ethods of competition in the nlarketing of dairy products.

E. Enforce ment:

1. R.egulation~ and re~~..: The Comm.issioner m.ay require all pro­ce s sors and distributors to maintain books and records reflecting their operations under a marketing order.

2. .!:-~':.e stiga tions:

a. .!:: i s.e l!st~ A marketing order may provide for price posting. Milk may only be sold at the prices filed pursuant to the marketing order.

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b. Inspections: The Commissioner may require information from processors or distributors and inspect books and records relative to oper­ations under marketing orders. Any information obtained must be kept confi­dential, but may be used in enforcement proceedings.

3. Sanctions: A violation of the Agricultural Marketing Act is a mis­demeanor and may subject a violator to fine or i-mprisonment. Violations may also be the subject of civil proceedings for injunctive relief.

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I'

7. CONNECTICUT

The only Connecticut legislation which controls the marketing of milk is Conn. Rev. Stat. Ann. Sec. 22-127 to 259.

A. Synopsis: Connecticut, a state of 3, 095, 000 people, ranks thirty­seventh in the production of milk in the United State s. The present milk marketing legislation, the Milk Marketing Act, was enacted in 1941. Provisions for the establishment of producer prices were repealed in 1959. The ComI1lissioner of Agriculture and the Milk Regulation Board administer the present trade practice regulations.

B. Control Agencies: Commissioner of Agriculture; Milk Regulation Board.

1. Number of members: The MRB is composed of nine persons.

2. Method of selection: Six members of the MRB are appointed by the governor.

3. Qualifications: Two members of the MRB must be actively engaged in the sale and distribution of milk, two must be actively engaged in the production of milk, and two must not have an active or financial interest in the production or sale of milk. The remaining members of the board are the milk administrator, the commis sioner of health, and commis­sione r of agriculture.

4. Terms of office: The six members of the MRB appointed by the governor serve four-year, staggered terms.

5. Major duties: The cornmissioner is vested with broad authority to inve stigate and regulate the milk industry. The MRB issue s regulations as provided by law.

C < Price Regula! ion: Connecticut law does not provide for the regulation of milk price s.

D. Trade Practice Regulation: The commissioner is given broad authority to II •• 0 prohibit unfair methods of competition and unfair trade practice s ... 11

upon a finding that such methods or practices " ... are inimical to the welfare of the dairy industry and the public. II

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1. Discrimination: The commissioner has special authority to issue ceas:~ and desist orders and order corrective measures to combat discrimina­tory pricing policie s.

2 . Gifts, discounts, rebates, commissions, and refunds: The com­mis sioner has special autho;ity- to p~hibftthe fur;;ishing or receipt of rebate s, discounts, premiums, gifts, or other things of value in co nnection with the sale of milk.

3. 'Combination sales: Combination sales at a price lower than the aggregat~ice is subject t'O prohibition by the commissioner.

4. Other reS"ulations: It is within the p0wer of the commissioner to prohibit the rendering of an unreasonable service or extension of credit or advertising allowance in connection with the sale of milk.

E. Enforcement:

1. Regulations and records: The commissioner of agriculture and the MRB share authority to issue regulations, as delineated by the statutes. Dealers are required to furnish to the commissioner the information he considers necessary to properly enforce the provisions of the statutes and regulations.

2. Investigations:

a. Price lists: The comm.issioner of agriculture may provide for the public posting ~i;'~the commissioner's office of all or certain resale price s and price change s of certain dealers.

b. Inspections: The commissioner has authority to enter and inspect all place s and premise s in which he suspects laws relating to milk are being violated or where milk is handled. He may also subpOe!;lZL, copy, and audit books, papers, records, and accountrl ~)f dealers.

3. ~ctions: Under appropriate circumstances, the commissioner rrlay refuse to grant or renew a license, or may suspend, revoke, or refuse to transfer a license already granted . He also has authority to seek injunctive relief to enforce compliance with or to re strain violation of any provision of the law or a regulation. Any violation of a statutory or regulatory pro­vision is a misdemeanor.

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8. DELAWARE

Delaware, a state of 579, 000 people, ranks forty- seventh in the production of milk in the United States. Presently, Delaware law does not provide for the regulation of milk prices or milk trade practices.

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9. FLORIDA

Florida, a state of 8,357, 000 people, ranks sixteenth in the production of m.ilk in the United States. Presently, Florida law does not provide for the regulation of m.ilk prices or m.ilk trade practices. The Florida Milk Conunis­sion with its authority to establish prices at all levels, was abolished com.­pletely as of 1969.

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10. GEORGIA

The only Georgia legislation which controls the marketing of milk in Georgia Code Ann. Sec. 42-601 et seq.

A. Synopsis: Georgia, a state of 4,926, 000 ~ople, ranks seventeenth in the production of milk in the United States. The Georgia Milk Commission with its authority to establish producer prices, was abolished in 1972. The pre sent milk marketing legislation has been in effect since 1961.

B. Control Agency: Commissioner of Agriculture. The commissioner has very limited authority to regulate the Georgia milk industry, including the power to license anyone doing business in the state.

C. ~e Regulation: Georgia law does not provide for the regulation of milk prices.

D. Trade Practice Re~ulation: The only Georgia legislation which purports to regulate cOlnpetition is 3. price -filing provision which allegedly eliminates unfair sale s practic e s in the whole sale pricing and sale of milk. See Section E, Part 2, below.

E. Enforcement:

1. Regulations and records: The cornrnissioner has authority to formulate rules and regulations necessary to enforce the statutory provisions, including regulations providing for the keeping, handling, and inspection of records necessary for the proper enforcement of the law.

2. Price lists: All wholesalers offering for sale or selling milk in Georgia, must file with the cornrnissioner a complete price list together with a list showing rebate s, volume discounts, rentals, and equipment furn­ished at wholesale 48 hours prior to the effective date thereof. It is unlawful for a wholesaler to sell or offer to sell milk at any price ot..'her than the one currently on file. However, a negotiated price which deviates from the filed price is valid but the cornrnissioner must be notified within 48 hour s.

3. Sanctions: The commissioner has power to sus upend or revoke any license issued by him for a violation of any provision of the legislation or the rules and regulations made thereunder. Such a violation is a misdemean­or under Georgia law.

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11. HAWAII

The only Hawaii legislation which controls the marketing of milk is Hawaii Rev. Stats. Sec. 157 -1 et seq.

A. Synopsis: Hawaii, a state of 865,000 people, ranks forty-sixth in the production of milk in the United States. The present milk marketing legislation, the Milk Control Act, has remained substantially unchanged since it was enacted in 1967. The Division of Milk Control, Department of Agriculture, administers the present milk price regulations.

B. Control Agency: The Board of Agriculture of the Department of Agriculture, Division of Milk Control. The division of milk control, under

the supervision of the board, administers the provisions of the milk law.

C. Price Regulation:

1. Initiation: Any price regulation or order establishing a production quota must be initiated upon the board l s motion, upon petition by fifty-five percent of all producers in a milk shed, or upon petition by the producers and producer-distributors who produce fifty-five percent of the milk in a milk shed. Public hearings are required by law.

2. Scope: The board must establish by order the minimun prices and salvage values for milk to be paid to producers by producer-distributors and distributors. The prices paid to producers must be based upon quota as signed each producer by the board pursuant to an elaborate legislative scheme.

3. Termination: Revision or termination of minimum prices or quotas in a milk shed must be accompanied by the same procedure by which they are initiated.

D. Trade Practice Regulation: Hawaii legislation does not provide for the regulation of unfair trade practices specifically regarding the milk industry.

E. Enforcement:

1. Regulations: The board is authorized to make and enforce all rule s and regulations necessary to carry out the statutory provisions.

2. Inspections: The board has authority to subpoena records and persons, administer oaths, and conduct hearings. It has the right to enter places where milk is handled or books, records, papers, or documents are kept and may inspect and copy the same. The board has further authority to audit the records of its licensees. Any information obtained in the course of

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an investigation must remain confidential.

3. Sanctions: The board has limited authority under the statute s to suspend or revoke the licenses of its licensees. Violation of any statutory provision is a misdemeanor.

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12. IDAHO

The only Idaho legislation which controls the marketing of milk is Idaho Code Sec. 25-3101 et seq.

A. Synopsis: Idaho, a state of 820,000 people, ranks twenty-second in the production of milk in the United States. The present milk marketing legislation has remained substantially unchanged since 1969. The Department of Agriculture and the Dairy Products Commission administer the present trade pra~tice regulations.

B. Control Agencies: Department of Agriculture; Dairy Products Com-mission.

1. Number of members: The DPC is composed of eleven members.

2. Method of selection: Nine members of the DPC are elected from representative districts by producers. The dean of the College of Agricul­ture at the University of Idaho and a representative of the Idaho Milk Pro­cessors Association serve as ex officio members.

3. Qualifications: Each elected member of theDPC must be over twenty-five years of age, a resident of the state and district he represents, and be and for 5 years have been engaged in producing dairy products m Idaho.

4. Terms of office: Elected members of the DPC serve 3-year terms.

5. Major duty: The DPC is authorized II ••• [to] take such action as [it] deems ne cessary or advisable in order to stabilize and protect the dairy industry of the state .... "

C. Price Regulation: Idaho law doe s not provide for the regulation of milk prices.

D. Trade Practice Regulation:

1. Sales below cost: The sale of milk at less than cost is illegal.

2. Disc rimination: It is unlawful for purchasers to buy at an unjust­ifiably higher price in one locality than that at which they are buying in an­other locality of the state. Sellers are prohibited from selling at Ul1iustifiably lower prices in ore locality than that at which they are selling at another

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locality in the state. Discrimination in price or service among wholesale customers or consumers who purchase like quantities under like conditions and who are similarly situated, is forbidden.

3. Gifts and loans: Gifts of milk, services, or money for the pur­pose of securing or retaining the business of a wholesale customer or con­sumer is illegal. It is also unlawful to make or renew any money loans to any wholesale customer.

4 .. Discounts and rebates: The payment, allowance, or acceptance of sec ret rebate s, sec ret refunds, or unearned discounts, whether in the form of money or otherwise, is forbidden.

5. Combination sales: It is unlawful to sell a product in the same transaction involving milk at a price less than its replacement cost or in­voice price, whichever is lower.

6. Other regulations: Idaho law regulates the furnishing of equip­ment, money, and fixtures by members of the dairy industry, and false statements by competitors.

E. Enforcement:

1. Regulations: The DPC has authority to adopt regulations for the procedure and exercise of its powers and the performance of its duties.

2. Investigations: The department of agriculture has authority to require annual busine s s reports from all who deal in the dairy industry. In addition, the books, papers, and records of milk buyers and sellers are subject to inspection by the department. The DPC is empowered to inspect the premises and records of any dealer and/or producer-handler.

3. Sanctions:_ Aviolation of any Idaho milk law is a misdemeanor. In case of breach of some trade regulations, private persons may seek an injunction and treble damages while the attorney-general may seek revoca­tion of the corporate charter.

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13. ILLINOIS

Illinois, a state of 11,145,000 people, ranks eleventh in the production of milk in the United States. Presently, Illinois law does not provide for the regulation of milk prices or milk trade practice s.

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14. INDIANA

The only Indiana legislation which controls the marketing of milk is Indiana Code Ann. Sec. 24-4-1-1 et seq.

A. Synopsis: Indiana, a state of 5,311,000 people, ranks fourteenth in the production of milk in the United States. The present milk marketing legislation has remained substantially unchanged since 1913.

B. Control Agency; None.

C. Price Regulation: Indiana legislation does not provide for the regula­tion of milk prices.

D. Trade Practice Regulation: Milk buyers and sellers are specifically forbidden to unjustifiably engage in price disc rimination by buying milk at a lower price in one locality than that paid in another locality.

E. Enforcement: Responsibility for enforcement of the regulation which prohibits price discrimination rests with the county prosecutors and the at­torney-general. Violation of the statute is a misdemeanor. The secretary of state is required to revoke the permit to do business in Indiana of any corporation guilty of price disc rimination.

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15. IOWA

The only Iowa legislation which controls the marketing of milk is Iowa Code Ann. Sec. 192Al et seq.

A. Synopsis: Iowa, a state of 2,870,000 people, ranks eighth in the pro­duction of milk in the United States. The present milk marketing legisla­tion has remained substantially uncharwd since 1965. 'The Division of Dairy Trade Practices, Department of Agriculture, administers the present trade practice ·regulations.

B. Control Agency: Secretary of Agriculture, Department of Agriculture, Division of Dairy Trade Practice s.

C. Price Regulation: Iowa legislation does not provide for the regulation of milk prices. Processors, distributors, and retailers are specifically for­bidden " ... [to] enter into any agreement or contract with any other person for the establishment or maintenance of minimu m prices of dairy products in restraint of trade and for the purpose of elinlinating free and open compe­tition in the sale of dairy products. II

D. Trade Practice Regulation:

1. Discrimination: It is unlawful for a seller to unjustifiably disc rim­inate In price among purchasers similarly situated.

2. Gifts and loans: With limited exceptions, it is illegal for a pro­cessor or distributor to underwrite loans to or become bound for financial obligations of any retailer. Processors and distributors are also forbidden to make available free goods in connection with the s::l.le of milk or to give anything of value to a retailer.

3. Discounts and rebates: Discounts, rebates, and services are allowed under Iowa law but are closely regulated by statute.

4. Other regulations: Iowa law regulates the furnishing and repair of dairy equipment by processors and distributors as a service to retailers, the advertising of milk, and the furninshing of advertising and promotion materials and services to retailers. Iowa legislation prohibits the payment of money, credit, gifts, or loans by processors or distributors to retailers including rental for the storage or display of dairy products on the premises where offered for sale by the retailer.

E. Enforcement:

1. Regulations: The department of agriculture is authorized to

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proITmlgate rules and regulations to carry out the purposes of the Iowa milk marketing legislation.

2. Investigations:

a. Price lists: Distributors are required to file milk price schedules with the department of agriculture. The price lists thus filed may be used only to determine and prove violations of the milk law, par­ticularly the discrimination sections.

b. Inspections: The sec retary of agriculture has authority to require the filing of s?ecial reports by members of the dairy industry, to conduct hearings, to administer oaths, and to issu e subpoenas and cease and desist orders.

3. Sanctions: For violations of the milk legislation by members of the dairy industry, the department of agriculture may seek injunctive relief or may deny, suspend, or revoke the licenses it is authorized to issue. Private persons ITlay also seek injunctive relief and treble damages. The Iowa milk legislation does not pr ovide criminal sanctions for violation of the provisions of the milk regulatory law.

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16. KANSAS

The only Kansas legislation which controls the marketing of :milk is K. S. A.

Sec. 50-501 et seq. 65-725 et seq.

A. Synopsis: Kansas, a state of 2,267,000 people, ranks twenty-fourth in the production of milk in the United States. The present milk marketing legislation relative to trade practice s has remained substantially unchaned since 1957.

B. Control Agency: Kansas Dairy Commissioner.

C. Price Regulation: Kansas law doe s not provide for the regulation of milk prices.

D. Trade Practice Regulation:

1. Sales below cost: Whol es alers, processors, and distributors are forbidden to sell milk at less than cost or to provide expendable supplies to retailers at less than cost plus 60/0. In either case, prices may be below cost if made in good faith to meet existing lawful competition.

2. Discounts, and rebates: It is unlawful for any whoesaler, pro­cessor, or distributor to grant to any retailer any secret discount, rebate, bonus, premiunl, or compensation.

3. Discrimination: Wholesalers, processors, and distributors are not permitted to deviate from the price at which they furnish dairy products of the same quality, brand, and quantity to other retail dealers in the immed­iate vicinity unless made in good faith to meet existing lawful competition.

4. Gifts and loans: Wholesalers, processors, and distributors are forbidden to furnish, give, rent, lease, Ie nd or sell to any retail dealer or consumer, money, fixtures, equipment or anything of value except under the limited circu:mstances provided by statute. They are also forbidden to make, guarantee, or procure another to guarantee any loan or the payment of any financial obligation of a retail dealer.

5. Other regulations: Whoesalers, processors, and distributors are forbidden to service equipment used in connection with the sale or consump­tion of dairy products by a retail dealer or consumer; to neglect to institute an action for recovery of any fixture or equipment from a retailer or con­sumer who defaults on any payment; to pay any retailer for any advertising, display, or distribution services and for use of equipment; to extend ab­normal credit terms to retail dealers; to sell to a retailer on consignment or with the privilege of return or on any basis other than a bona fide sale;

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I'

and to subsidize any retail dealer through any device or scheme. In addition, the manufacture and sale of filled milk is illegal.

E. Enforcement: In the context of trade regulation, the Kansas Dairy Commis­sioner is specifically empowered to enforce the filled milk provisions of the law. To that extent, he can provide for periodic inspections and investigations he deems necessary to disclose violations. Violation of the remaining trade regulations may give rise to a claim fur injunctive or legal relief by any person including the attorney general and the appropriate county attorney. Violation of any trade regulation is a misdemeanor with the penalty for violation of the filled milk statute set at imprisonment for not more than one year.

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17·. KENTUCKY

The only Kentuc ky legislation which controls the marketing of milk is Ken. Rev. Stat. Ann. Sec. 260. 675-760 and 260. 991.

A. Synopsis: Kentucky, a state of 3,396, 000 people, ranks thirteenth in the production of milk in the United States. The present milk marketing legislation, the Milk Marketing Law, has remained substantially unchanged since it was enacted in 1960. The Milk Marketing and Antimonopoly Com­mission administers the present trade practice regulations.

B. Control Agency: Milk Marketing and Antimonopoly Commission.

1. Number of members: Six (6).

2. Method of selection: The Commissioner of Agriculture, Labor, and Statistics is an ex officio member of the conunission. The five rem­aining members of the commission are appointed by the governor.

3. Qualifications: Members of the MMAC must be residents of Kentucky and citizens of the United States.

4. Terms of office: Members of the MMAC serve four-year, stagger­ed terms.

C. Price Regulation: The Kentucky milk marketing legislation specifically forbids the MMAC to " ... set, fix., or establish any price or prices, for sale of any milk ... or any other product. II

D. Trade Practice Regulation:

1. Sales below cost: Distributors, processors, and handlers are forbidden to advertise for sale any article or product at less than the rost thereof to such vendor.

2. Discrimination: No distributor, processor, or handler is per­mitted to unjustifiably discriminate in price in the sale of any milk to dif­fe rent localitie s within the state.

3. Gifts and loans: A gift or offer to give away any article or pro­duct by a distributor, proces sor, or handler for the purpose or with the effect of injuring competitors, destroying competition, or creating a mon­opoly, is illegal.

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4. Discounts and rebates: Processors, distributors, and handlers are forbidden to allow secret rebates, unearned eli scounts, free services, financial aid, free equipment, or any other thing of value to any purchaser or consignee in connection with the sale or consignment of milk.

5. Other regulations: The Kentucky milk marketing legislation reg­ulate s the providing of advertising material to stores by other members of the milk industry. Furthermore, distributors, processors, and handlers are forbidden to engage in any other marketing practice declared unreasonable by the MMAC.

E. Enforcement:

1. Regulations: The MMAC is authorized to promulgate reasonable rule s or regulations for the elimination of any trade practice contrary to the legislation.

2. Investigations:

a. Price lists: Dealers and handlers are required to file current sche::lules of their milk prices with the l\I1MAC in accordance with appropriate regulations.

b. Inspections: The MMAC is authorized and empowered to conduct inve stigations and hearings, is sue subpoenas, and l"equire the produc­tion of books and records relevant to an investigation or hearing.

3. Sanctions: The MMAC may suspend, revoke, or decline to grant a license to those applicants who fail to adhere to the provisions of the milk marketing legislation. In addition, the MMAC may seek injunctive relief against such licensees. Violation of any provision of the milk marketing legislation or rule, regulation, or order of the MMAC is a misdemeanor under Kentucky law.

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18. LOUISIANA

The only Louisiana legislation which controls the marketing of milk is La.

R.S. 40.931.1 et seq.

A. Synopsis: Louisiana, a state of 3,791,000 people, rank.s ~wenty~sev­enth in the production of milk in the United States. The LOUlslana MIlk Commission was created in 1962 and abolished in 1975. The present milk marketing legislation, the Dairy Stabilization Act, was enacted in 1975. Provisions for the establislunent of wholesale and retail prices were re­pealed in 1976. The Commissioner of Agriculture and the Dairy Stabiliza­tion Board administer the present price and trade practice provisions.

B. Control Agencies: Commissioner of Agriculture; Dairy Stabilization

Board.

1. Number of members: The DSB is composed of eight (8) mem-

bers.

2. Method of selection: Members of the DSB are appointed by the governor.

3. Qualifications: The DSB must be composed of one wholesale grocer, one processor, one retailer, two milk producers, and three con­sumers. No consumer member may be engaged in producing, processing, or selling dairy products nor have a personal economic interest in any person who is so engaged.

4. Terms of office: Members of the DSB serve three-year, stag­gered terms.

C. Price Regulation:

1. Initiation and termination: The commis sioner is authorized to call public hearings to consider the establishment of eco nomic pricing formulas in production marketing areas de signated by him. Thereafter, the commissioner must recommend an economic pricing formula for each marketing area. The formula becomes effective upon approval by at least two-thirds of the producers voting in the marketing area. The formula may be terminated upon the approval of fifty per cent or more of the pro­ducers voting in referendum called for that purpose. The commissioner also has authority to suspend operation of an economic formula for a period of not more than 90 days, and impose minimum prices instead. Upon ex­piration of the 90-day period, the economic formula becomes effective once again.

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2. Scope: The only prices that may be established by the corrunis­sioner are the minimum prices to be paid to milk producers by processors or handlers, distributors, and bulk milk handlers for milk used as class I milk. In addition, Louisiana law specif ically declare: " ... in no event shall the Dairy Stabilization Board have power or authority to regulate or establish wholesale or retail prices: provided that any such sales shall be subject to the condition of open market competition in compliance with the dis ruptive trade practice provisions."

D. Tr.ade Prcrlice Regulation: The DSB is empowered and directed to prevent persons from using unfair methods of competition, unfair or dec­eptive acts or practice s, and disruptive trade practice s in the sale of milk.

E. Enforcement:

1. Regulations: The DSB is authorized to promulgate, after notice and hearing, rule s and regulations defining with specificity acts and prac­tices in the sale of milk which are unfair, disruptive, and deceptive and providing for inve stigation of complaints thereunder and the enforcement thereof. The commissioner is authorized to promulgate rules and reg­ulations to control ve rtical integration, defined as the entry of food chain stores into the dairy processing business.

2. Investigations: Each production stabilization plan must contain provisions relating to records to be kept and reports to be submitted by processors. In addition, the commissioner and DSB are authorized to enter premises and may subpoena, inspect, copy, and audit books, papers, records, and accourts of licensees or persons doing business with licensees. Any information obtained must remain confidential.

3. Sanctiyns.1. Licenses issued by the commissioner or the DSB may be susperiled or revoked upon failure to comply with the milk law. In lieu of license suspension, the commissioner or DSB may permit the payment of a penalty set by the commissioner or DSB. The commissioner, DSB, or any interested person may seek injunctive relief. Private litigants are also entitled to recover treble damages. Violation of the Dairy Stab­ilization Law is a mis.:lemeanor.

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19. MAINE

The only Mai ne legislation which controls the marketing of milk is Maine Rev. Stat. Ann. 7: 2951- 2960.

A. Synopsis: Maine, a state of 1, 059, 000 people, ranks thirty- sixth in the production of milk in the United States. The present milk marketing legislation has remained substantially unchanged since 1935. The Maine Milk Commission administers the present milk price and trade practice regulations.

B. Control Agency: Maine Milk Commission.

1. N.1mber of members: Five (5).

2. Method of selection: The Commissioner of Agriculture is an ex officio member of the commission. The four remaining members are appointed by the governor.

3. Qualific~tions: None of the four appointed members of the MMC may have, at the tUne of appointment or while serving as a member, any official business, professional connection or relation with, or hold any interest or stock or securities in, any producer, dealer, store, or other person whose activities are subject to the jurisdiction of the commission. Nor m .ay any member render any professional or other service against any such producer, dealer, store, or other person or be a member of a firm which shall render any such service. All members of the MMC must be residents of Maine.

4. Terms of office: Members of the MMC serve 4-year staggered terms.

C. Price Regulation:

1. Initiation and termination: The MMC is ve sted with the power to establish in the several market areas designated by it, the minimum prices provided by law, only after investigation, notice, and a public hearing. Any change in established prices must come after a public hearing.

2. Scope: The MMC has the power to establish the minimum whole­sale and retail prices to be paid to producers, dealers, and stores for milk received, purchased, stored, manufactured, processed, distributed, or otherwise handled within the state.

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D. Trade Pract i ce Regulation: It is unlawful for any person to engage in any practice destructive of the scheduled minimum prices of milk, ID­

cluding but not limited to any discount, rebate, gratuity, advertising allowance or combination price for milk with any other commodity.

E. Enforcement:

1. Regulations and rec ords: The MMC may adopt, promulgate, and enforce all rules, regulations, and orders necessary to carry out its duties. The regulations may require that every producer, dealer, and store render to the MMC accounts of all milk business transacted. In addition, the leg­islation require s that all dealers in any market de signated by the MMC keep designated records of J:nilk transactions.

2. Investigations: In adJ:ninistering the law, the MMC has authority to conduct hearings, subpoena witnesses and records, books, and accounts, and adJ:ninister oaths.

3. Sanctions: Whoever violates any provlslon of the Maine milk marketing law or a rule or order of the MMC is subject to prosectution of a J:nisdemeanor. The MMC J:nay also seek injunctive relief.

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20. MARYLAND

Maryland, a state of 4, 098, 000 people, ranks twenty-first in the production of milk in the United States. Presently, Maryland law does not provide for the regulation of milk prices or milk trade practices.

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21. MASSACHUSETTS

The only Mas sachusetts legislation which controls the marketing of milk is Massachusetts Laws Ann. Sec. 94A:1-27 and 20:7-9.

A. Synopsis: Massachusetts, a state of 5,828,000 people, ranks thirty­eighth in the production of milk in the United States. The present milk mark­eting legislation, the Milk Control Law, has remained substantially unchanged since it was enacted in 1941. The Milk Control Commission administers the pre sent pr~ce and trade practice provisions.

B. Control Agencies: Milk Control Commission.

1. Number of members: The MCC is composed of three (3) members.

2. Method of selection: The members of the MCC are appointed by the governor.

3 . Qualifications: One member of the MCC must be a milk producer, another member m .ust be engaged in the business of sale and household delivery of :milk, and the third rnembe r ITlust re pre sent the public.

4. Tenus of office : Members of the MCC serve six-year, staggered te rms.

C. Price Regulation.:

1. Initiation and termination: The MCC is vested with the power to establish the minumum prices provided by law in the several market areas of the state designated by the MCC only after investigation, notice, and a public hearingo Special authority to establish minimUITl prices may be exercised by the MCC only if it declares a state of emergency. Such an emergency can be declared only upon petition of 25% of the producers within the market area .

2 . Scope: The MCC is required by law to establish " ... the minimum prices to be paid by milk dealers to other milk dealers, and to producers and consumers for rnilk recieved .•. and the terms and conditions under and times at which such price s are to be paid." Upon a declaration of a state of emer­gency , the M C C :may fix by official order the minimum wholesale and/or retail prices of milk sold within the affected market.

Do Trade Practice R e gulation:

1. Sale s below cost: Massachusetts law forbids the sale of milk below cost by any pe rson.

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2. Discrimination: It is illegal for milk dealers to unjustifiably dis­criminate in price between purchasers of milk of like grade, quantity, and quality either within the same or between different localities of the state. Nor may any milk dealer extend to certain purchasers special services or privileges not extended to all other purchasers in a like position.

3. Gifts and loans: No person may attempt to evade the prohibition against sales below cost by loan of equipment at less than the fair rental value, or sale of equipment at less than fair market value. The law also forbids any milk dealer to make or renew any money loan to a store.

4. Discounts and rebates: Discounts, rebates, free services, adver­tising allowances, barter or exchange agreements, distribution of free milk, refunds, and commissions are all forbidden if their purpose is to evade the established prices of the MCC or prohibitions against sales below cost or dis­crimination against customers.

5. Combination sales: Sale of milk with another product at a combined price less than the aggregate of the prices of the products when sold separately is illegal if the purpose is to evade the legislative prohibitions against sales below the MC CiS established price or sales below cost.

6. Other regulations: The Massachusetts milk control law also reg­lates the extension of credit by milk dealers to stores.

E. Enfo rc ement:

1. Regulations: The MCC is authorized to adopt all orders, rules, and regulations which it deems necessary or desirable to admini.ster or effectuate any of the purposes of the milk control law.

2. Investigations: For the purpose of administering the milk control law, the MCC is authorized to enter appropriate places to inspect the premises and books and records . In addition, the MCC may require by regulation the regular filing of reports by licensed milk dealers. The MCC also has authority to hold hearings, administer oaths, and sudpoena witnesses, books, records, and other relevant evidence. Any information obtained by the MCC by auth­orized inspection or required report must remain confidential.

3. Sanctions: The MCC may seek any legal or equitable remedy, in-cluding injunction, which may be nece s sary to enforce compliance with the

provisions of the milk control law. Furthermore, for violation of enumerated provisions, the MCC may revoke, suspend, or decline to grant or renew the licenses of members of the milk industry. Any violation of the milk statutes

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/'

is a misdemeanor. Finally, any producer, or the MCC on his behalf, may bring a c1aimfor damages against any milk dealer by whom he has been paid less than the minimum price for milk.

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22. MICHIGAN

The only Michigan legislation which controls the Inarketing of Inilk is Mich. COInp. Laws Sec. 28.821.

A. Synopsis: Michigan, a state of 9,157, 000 people, ranks sixth in the production of Inilk in the United States. The present Inilk Inarketing legis­lation has reInained substantially unchanged since 1913.

B. Control Agency: None.

C. Price Regulation: Michi.gan law doe s not provide for the regulation of Inilk price s.

D. Trade Practice Regulation: Michigan law has one trade regulation specifically applicable to the sale of milk. The provision forbids those en­gaged in the husiness of buying milk for manufacture to unjustifiably disc rim­inate among different localities within the state by buying milk at a higher price in one locality than is paid for Inilk by the same person in another locality.

E. Enforcement: Violation of the milk trade regulation is a InisdeIneanor.

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23. MINNESOTA

The only Minnesota legislation which controls the marketing of selected dairy products is Minn. Stat. Ann. Sec. 32. 11-12. and 32A. 01.

A. SY.,noE,sis: Minnesota, a state of 3,926,000 people, ranks fourth in the pro­duction of milk in the United States. The present milk marketing legislation, the Dairy Industry Unfair Trade Practice Act, has remained substantially un­changed since it was enacted in 1957. The Commissioner of Agriculture admin­isters the pre sent trade practice provisions.

B. Control A~ency: Department of Agriculture, Dairy Practices Division.

C. Price Re~ulation: The Minnesota milk law specifically declares rr(n)othing ... will be construed to authorize or permit the commissioner or any person representing the commissioner to set, fix, or establish the ... price or prices ... (for selected dairy products). "

D. Trade Practice Re~ulation:

1. Sales below cost: No manufacturer, wholesaler, distributor, or re­tailer of selected dairy products may sell below "cost", as defined by statute.

2 . Discrimination: Persons engaged in the business of buying milk are forbidden to unjustifiably discriminate between different localities or between persons in the same locality by purchasing milk at a higher price in one local­ity or from one person than is paid for milk by such person in the same or an­other locality.

3. Gifts and loans: No manufacturer, distributor, or whole saler may give, lend, or advance any money, credit, or other thing of value to a retailer or furnish, give, lend, lease, or sell to a retailer furniture, fixtures, fittings, or equiprnent in order to secure or retain the retailer's business, except as otherwise provided by law; have any interest in or pay for the license of a re­tailer; become bound for the repayment of any loan of money or the fulfillment of any financial obligation of any retailer; or in connection with any sale to a distributor or retailer, make any gift of money, trading stamps, coupons, ser­vices. supplies~ or anything of value. No manufacturer, wholesaler, distributor or retailer lTIay give away selected dairy products for the purpose of violating specified provisions of the law.

4. Discounts, and r e bates: Generally, rebates, discounts, or advertising allowanc;sto retailers or distributors by manufacturers, distributors, or wholesalers are forbidden.

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5. Combination sales: No distributor, manufacturer, or wholesaler may legally charge a combined price for selected dairy products together with another com­modity or service which is less than the aggregate of the prices of the selected dairy products and the corrunodity or service when sold separately.

6. Other regulations: In addition to the above provisions, Minne sota law re­gulates the following activities of milk manufacturers, wholesalers, and distri­butors: (1) the ownership of a retail milk business; (2) the purchase and lease­back or resale of property to a retailer; (3) the rendering of advertising assistance to a retailer; (4) the extension of credit to a retailer; and the sale of furniture, trade fixt:ures, and equipment to a retailer. The manufacture and sale of filled dairy products in Minnesota is illegal.

E. Enforcement:

1. Regulations and records: Every person engaged in the purchase, manufacture, or sale of dairy products must keep full records of information specified by law. The commissioner is authorized to promulgate rules or regulations for the elimination of any trade practice found contrary to the provision of law.

2. Inve stigations: The commissioner has authority to conduct hearing s and subpoena witnesses and books of account or other business records and may inspe ct books and records as he deems necessary. Any information obtained by the commissioner from such records and reports must remain confidential.

3. Sanctions: Violation of the provision prohibiting price discrimination, which is not administered by the Dairy Practices Division, is a misdemeanor. Violation of all other trade regulations is not a crime in and of itself but is pun­ishable as a contempt once the commissioner promulgates a cease and desist orde r. The commissioner may also levy civil fines. Individuals affected by a violation of the trade regulations rre.y seek injunctive relief and treble damages.

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24. MISSISSIPPI

The only Mississippi legislation which controls the marketing of milk is Miss. Code Ann. Sec. 75-31-59.

A. Synopsis: Mississippi, a state of 2,346,000 people, ranks thirty-first in the production of milk in the United States. The Mississippi Milk Commi­ssion with its authority to establish prices was abolished in 1970. The present state milk practice provision was enacted in 1928.

B. Control Agency: None.

C. Price Regulation: Mississippi law does not provide for the regulation of milk prices.

D. Trade Practice Regulation: Any person engaged in the production, man­ufacture, sale, distribution, or business of purchasing milk may not unjust­ifiably discriminate between different localities by selling or buying milk at a.

lower rate or price in one locality of the state than that charged by such per­son or paid by such person in another locality.

E. Enforcement: Violation of this provision of Mississippi law is a mis­demeanor.

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25. MISSOU RI

The only Missouri legislation which controls the marketing of milk is Mo. Arm. Stat. Sec. 196. 520-690 and 416.410-560.

A. S'y~sis: Missouri, a state of 4, 763,000 people, ranks tenth in the production of milk in the United States. The present milk marketing legislation The Missouri Dairy Law, enacted. in 1939, and the Unfair Milk Sales Practices Act, enacted in 1959, has remained substantially unchanged since adopted. The Commissioner of AgricultUre administers the present trade practice re gulations.

B. Control Agency: Director of Agriculture.

C. Price Re[ulati~: Missouri law does not provide for the regulation of milk price s.

D. Trade Practice Regulation:

1. Sales below cost: No processor, distributor, nonprocessing retail-er, or bulk milk handler with the intent or with the effect of unfairly diverting trade from a competitor, or of otherwise injuring a competitor, or of destroy­ing competition, or of creating a monopoly may advertise, offer to sell, or sell within the state of Missouri, at wholesale or retail, any milk product for Ie ss than cost.

2. ~crimination: No processor or distributor may unjustifiably dis­criminate in price in the sale of milk furnished from the same plant between any locality in Missouri.

3. Disco~nts and rebates: No milk processor or distributor may un­justifiably give or offer to give any purchaser any rebate, discount, free service or services, advertising allowance, or any other thing of value.

4. Gifts and loans: No milk processor or distributor may unjustifiably gi ve or offer to give any purchaser any donation, free merchandise, rent on shelf space, financial aid, free equipment, or pay for advertising space used jointly.

5. Combination sales: No person may unjustifiably advertise, offer to sell, or sell milk with any other commodity or service at a combined price which is less than the aggregate of the prices for which the milk product and the other commodity or service are offered for sale.

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E. Enforcement:

1. Regulations and records: The commissioner is authorized to pro­mulgate rules and regulations necessary to enforce the provisions of tIE Missouri milk trade laws. Each person engaged in the purchase and sale of milk must keep full records of such purchases and sales.

2. Investigations: The commissioner may enter and inspect all appropriate premises and collect all reasonable information necessary to ad­minister the law. Any information obtained must remain confidential. In making investigations, the commissioner is authorized to conduct hearings, administer oaths, and issue subpoenas.

3. Sanctions: No criminal fines or penalties may be imposed for viola­tion of any trade regulation. However, the commissioner may initiate claims for injunctive relief and/or suspend or revoke the licenses of violators. Per­sons damaged by a violation may also seek injunctive relief or treble damages.

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26. MONTANA

The only Montana legislation which controls the marketing of milk is Mont. Rev. Codes Ann. Sec. 27-401 to 27-426, 82A-40l to 82A-406.l, and 82A-1l2.

A. Synopsis: Moriana, a state of 748,000 people, ranks forty-fourth in the production of milk in the United States. The present milk marketing leg­islation, the :Milk Control Act, has remained substantially unchanged since it was enacted in 1939. The Board of Milk Control, established in 1975 to replace t:qe Milk Control Board, administers the present milk price and milk trade practice provisions.

B. Control Agency: Board of Milk Control; Department of Business Reg­ulation.

1. Number of members: The BMC is composed of five (5) members.

2. Method of selection: The members of the BMC are appointed by the gove rno r.

3. Qualifications: No member may be connected in any way with the production, processing, distribution, or wholesale or retail sale of milk or dairy products, have held public office during the two years immediately pre­ceding his appointment, nor hold public office during his term. Not more than three members may be of the same political party or residents of the same congre s sional district. One member must be a licensed attorney.

4. Terms of office: A majority of the members of the BMC serve terms concurrent with the gubernatorial tenn. The remaining members of the BMC serve from the middle of one gubernatorial administration to the middle of the su:ceeding one.: The gubernatorial term is four years.

C. Price Regulation:

1. Initiation and termination: The BMC must establish prices as provided by statute in natural marketing areas designated by the Thpartment of Business Regulation after a public hearing . The BMC also has authority to adopt, after public hearing, a base or quota plan as a method of payment, upon the petition of a distributor or a majority of his producers. The BMC may establish an area-wide or state-wide pooling arrangement as a method of payment after a hearing upon the petition of any producer. producer-dis­tributor, or distributor in any marketing area, The BMC may amend any official rule establishing prices in the same manner provided for the initial

establishment of those prices.

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2. Scope: The BMC must establish, after written findings and conclusions, the minilnwn producer, jobber, and retail prices for class 1 milk in all areas of the state by means of flexible formulas which must be devised so that they automatically bring about changes in minimum prices. The BMCalso has the authority to regulate hauling rates for moving milk from farm-to-plant and from plant-to-plant.

D. Trade Practice Regulation: The Department of Business Regulation is authorized to adopt reasonable rules governing fair trade practices. The rules mu~t contain, but are not limited to provisions prohibiting the following methods of doing business.

1. Discrimination: The extension of special prices or services to certain customers not available to all customers who purchase milk of like quantity under like terms and conditions, is illegal.

2. Gifts and loans: The giving of milk, c ream, dairy products, services, or articles of any kind, for the purpose of securing or retaining the fluid milk or fluid cream business of a customer, is unlawful.

3. Discounts and rebates: It is illegal for a person to pay, allow, or accept secret refunds, or unearned discounts, whether in the form of money or otherwise.

4. Other regulations: The Montana milk legislation also regulates the extension of credit and other financial dealings between retailer and other membe rs of the dairy industry.

E. Enforcement:

1. Regulations: The Department of Business Regulation may adopt and enforce rules and orders necessary to carry out the provisions of the milk law and orders adopted by the department or BMC.

2. Investigations: To enforce the Montana milk law, the department has authority to conduct hearings, administer oaths, subpoena witnesses, records, books, and accounts, enter and inspect appropriate premises, and inspect and copy appropriate docwnents.

3. Sanctions: For violation of statutory milk provlslOns, persons may be subjected to equitable or legal reief initiated by the department. In addition, any violation of any statutory provision or lawful regulation is a misdemeanor. The department also has authority, in case of violation, to refuse to grant or may suspend or revoke a license, or in lie u ther eof, to assess a civil fine.

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27. NEBRASKA

Ne braska, a state of 1,546,000 people, ranks twenty-third in the production of Inilk in the United States. The Nebraska Dairy Products Board with its authority to control prices, was established in 1969 and abolished in 1975. Milk trade practice regulations were enacted in 1965 and repealed in 1975. Pre sently, Nebraska law doe s not provide for the regulation of Inilk prices or Inilk trade practice s.

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28. NEVADA

The only Nevada legislation which controls the marketing of milk is Nev. Rev. Stat. Sec. 584.325-690.

A. Synopsis: Nevada, a state of 592 , 000 people, ranks forty-fifth in the production of milk in the United States. The present milk marketing legisla­tion has remained substantially unchanged since 1935. The State Dairy Com­mission administers the present milk price and milk trade practice regulations.

B. Control Agency: State Dairy Commission.

1. Number of members: The SDC is composed of three (3) members.

2. Method of selection: The members and the chairman of. SDC are appointed by the governor.

3. Qualifications: One member shall be a Certified Public Accountant or a Public Accountant licensed by the state; one member shall be an agricul­tural economist; one member shall be experienced in banking or finance.

4. Terms of office: Members of SDC serve three-year, staggered terms.

C. Price Regulation:

1. Initiation and termination: Price regulations must be incorporated into s tabilization and marketing plans applicable to marketing areas designated by the SDC. No stabilization and marketing plan can be devised until a public hearing is conducted to determine that at least 65% of the milk producers and the producers of 65% of the milk in the same proportion of producers petition the SDC directly. No stabilization and marketing plan can be implemen­ted until notice is given and a public hearing is held. Any plan can be amended or terminated after notice and a public hearing. The hearing may be held upon the motion of the SDC and must be held upon the petition of 55% of the producers and the producers of 55% of the milk in the marketing area. If producers want to establish a Federal Milk Marketing Order or other similar type of milk marketing order, the SDC may continue the stabilization and marketing plan insofar as it regulates retail and wholesale prices, provided 55% of the distributors and the distributors of 55% of the milk in the area consent.

2. Scope: Each stabilization and marketing plan may contain provi­sions regulating the minimum prices to be paid to producers, distributors, and retailers and shall contain provisions regulating all discounts allowed

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by producers, distributors and retailers.

D. Trade Practice Regulations: The SDC is vested with the adm.inistrative duty and authority to designate arxl elim.inate unfair trade practices.

1. Sales below cost: Sales below cost by distributors and retailers are illegal.

2. Discrim.ination: No distributor (and no retailer if there is a stab­ilization ~nd m.arketing plan) m.ay extend to certai n custom.ers special price s or services not m.ade available to all custom.ers who purchase fluid m.ilk of like quantity under like term.s and conditions .

. 3. Gifts and loans: No distributor (and no retailer if there is a stabilization and m.arketing plan) m.ay give away any m.ilk, services, or article s of any kind for the purpose of securing or retaining the fluid m.ilk business of any custom.er.

4. Discounts and rebates: No distributor (and no retailer if there is a stabilization and m.arketing plan) m.ay pay, allow, or accept secret re­bates, secret refunds, or unearned discounts by any person, whether in the form. of m.oney or otherwise.

5. Other regulations: Nevada law regulates in detail, contracts for the purchase from. producers of fluid m.ilk in excess of 200 gallons per m.onth. It is unlawful for any distributor or retailer to m.anipulate the prices of fluid m.ilk for the purpose of injuring, harassing or destroying com.petition. Pro­cessing distributors are required to file costs. All distributors are required to file wholesale, retail, irier-distributor and dock prices as applicable.

E. Enforcem.ent:

1. Regulations: The SDC m.ay m.ake rules and regulations as it deem.s necessary to enforce the legislative provisions and the provisions of any stabilization and m.arketing plan.

2. Investigations: The SDC m.ay hold hearings, adm.inister oaths, subpoena witnesses, and exam.ine books and records of all producers, dis­tributors, and retailers. It m.ay authorize the entry and inspection of pre­m.ises and the inspection and copying of books, papers, records, and docu­m.ents. Distributors and producer co-operatives are required to m.aintain certain records detailed by the legislation. Inform.ation obtained from. these reports m.ust rem.ain confidential.

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/'

3. Sanctions: The SDC may refuse to grant or renew a license, or may suspend or revoke a license already granted. It also has authority to seek in­junctive relief to enforce compliance with or to restrain violation of any pro­vision of the law or a regulation. Any violation of a statutory or regulatory proviSIon is a misdemeanor. In addition to or in lieu of all other penalties, the SDC may impose and collect a civil fine of not more than $1, 000. 00 for each violation.

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29. NEW HAMPSHIRE

New Hampshire, a state of 818,000 people, ranks forty-third in the production of milk in the United States. The New Hampshire Milk Control Board with its authority to establish prices, was abolished in 1969. Presently, New Hampshire law does not provide for the regulation of milk prices or milk trade practices.

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30. NEW JERSEY

The only New Jersey legislation which controls the :marketing of :milk is N. J. Stat. Ann. Sec. 4:1-24 to 4:12A-l to 4:l2A-58 (West).

A. Synopsis: New Jersey, a state of 7, 316, 000 people, ranks thirty-ninth in the production of :milk in the United States. The present :milk :marketing leg­islation has re:mained substantially unchanged since 1941.. In 1949 the Milk Control Board was abolished and its functions transferred to the Office of Milk Industry. The present Director replaced the Office of Milk Industry in 1968. He ad:ministers the present :milk price and :milk trade practice provi sions.

B. Con.!E~l A~e..r:..c.x.: Director of the Division of Dairy Industry, Depart:ment of Agriculture.

1. Initiation and ter:mination: Notice and a public hearing are the prerequisites to the establishment, a:mendment, and term.ination of prices by the state.

2. Sco£e: The director may fix the :mini:mum price to be paid to the producer, the mini:mum price to be charged by :milk dealers to other :milk dealers, processors, subdealers, and stores, the :mini:mum price to be charged by processors to subdealers, the :mini:mu:m price to be charged by subdealers to store s, and the mini:mum price to be charged the consumer for milk in the municipalities or markets of the state.

D. Trade Practice Re~ulation: No milk dealer, proce ssor, subdealer, or store rnay distribute, sell, or handle :milk purchased directly or indirectly for a price less than the mini:mum price fixed by the director. The law also makes illegal any :mutual, or secret agreement, arrange:ment, co:mbination, contract, or com:mon understanding between :me:mbers of theindustry whereby the price of milk to be paid to producers in New Jersey is reduced or the price to be paid by dealers, processors, subdealers, stores, or consumers for such milk is decreased in pursuance of such :mutual or secret understanding.

E. Enforcement:

1. Regulations: The director may conduct hearings, issue subpoenas for witnesses, books, papers, administer oaths, enter and inspect premises, and inspect all books, records, papers, and documents on said premises.

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3. Sanctions: The director may decline to grant or may suspend or revoke a license. He may also seek injunctive relief. The violation of a legislative pro­vision is a misdemeanor.

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31. NEW MEXIC 0

New Mexico, a state of 1,147,000 people, ranks forty-first in the production of milk in the United States. Prsently, New Mexico law does not provide for the regulation of milk prices or milk trade practices.

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32. NEW YORK

The only New York legislation which controls the marketing of milk is N. Y. Agric. & Mkts. Law Sec. 252 to 258-r and 258-s to 258-z (Consolo).

A. Synopsis: New York, a state of 18,120, 000 people, ranks third in the production of milk in the United States. The present price control legislation has been in effect since 1937. The Dairy Promotion Act which regulates trade practices in the milk industry, became effective in 1973. The Division of Milk Control, in existence since 1938, administers the present milk price and milk trade practice provisions.

B. Control Agency: Commissioner of Agriculture and Markets, Department of Agriculture and Markets, Division of Milk Control.

C. Price Regulation: Two methods:

1. Petition: After public notice, the commissioner must call a public hearing upon the petition of a produce rs' bargaining agency repre sent­ing at least 35% of the producers of milk in a production area designated by the commissioner. Whenever a producers' bargaining agency files a petition or amending petition, the distributors r bargainging agency in the saITle pro­duction area has a right to respond by petition. If the commissioner deter­mines that 66 2/3% of the area producers favor price controls, he may fix the minimum price they are to receive. Orders establishing producer prices may be rescinded after public hearing if the commissioner determines they are no longer necessary or that at least 35% of the producers in the area feel price control is not desirable.

2. Marketing agreements: The producers' bargaining agency and the distributors I bargainging ' agency of a production area, may enter into marketing agreements, fixing prices between producers and distributors. The cOITlmissioner has authority to issue a cease and desist order if the marketing agreement results in a monopoly or restraint of trade to such an extent that the price of milk is unduly enhanced. Upon application of the parties to the marketing agreement, the commissioner may make a ITlarket­ing agreement applicable to all producers, distributors, and handlers in the area, even if they do not approve and are not parties to the agreement if, after public hearing, it appears 66 2/3% of the producers and distribu­tors in the area do approve and the agreement is fair, equitable, and reasonable.

Any price fixing order or marketing agreement may, if 66 2/3% of the pro­ducers approve, provide for an equalization of prices to all producers of the production area so that each produce r receives the same base price for all milk delivered.

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D. Trade Practice Regulation: New York law provides generally that it is illegal for a seller of fluid ITlilk to engage in unfair ITlethods of cOITlpetitivn or unfair or deceptive acts or practices. A producers' bargaining agency and a distributors' bargaining agency ITlay also enter into a ITlarketing agree­ITlent containing provisions as to reasonable trade practices affecting their relations.

1. Sales below cost: Sales of fluid ITlilk below cost are illegal if the effect of such transaction is to destroy cOITleptition or eliITlinate a cOITlpetitor.

2. DiscriITlination: It is illegal for a ITlilk dealer to unjustifiably dis­criITlinate in price between different purchasers of ITlilk within the state.

3. Gifts and loans: The furnishing, sale, lease, or gift of any fac­ilities or products agreed upon between a buyer and a seller of ITlilk in order to deviate froITl other unfair trade practices is illegal.

4. Discounts and rebates: The granting of a price, rebate, COITlITl­ission, cOITlpensation, brokerage, allowance, discount, or service in order to deviate from other unfair trade practices is illegal. It is also illegal to grant a discount, rebate, free service, or advertising allowance if the purpose is to avoid adhering to the established price.

5. COITlbination sales: It is illegal to deviate froITl the regulated price by selling ITlilk together with another COITlITlodity or servi ce at a COITl­bined price which is ITlore or less than the aggregate of the prices at which the ITlilk and the cOITlmodity or service would be sold separately.

E. EnforceITlent:

1. Regulations and records: The cOITlITlissioner may adopt and en­force all rules and orders necessary to impleITlent the statutory provisions. Before issuing regulations governing trade practices, he ITlust conduct public hearings. The cOITlITlissioner may require milk dealers to keep records specified by law and make reports based thereon .

2. Investigations: The COITlITlissioner ITlay subpoena witnesses, rec­ords, books, and accounts, adITlinister oaths, and conduct hearings. He shall have access to preITlises and ITlay inspect and copy books, papers, records, and docuITlents the rein.

3. Sanctions: The cOITlITlissioner, for a violation of the statutues, ITlay decline to grant or renew, or ITlay suspend or revoke, a license; ITlay institute any action at law or equity, including injunction; and ITlay seek civil penaltie s. In addition, violation of the statute s is a ITlisdemeanor. 1£ trade practice regulations are violated, private litigants ITlay seek injunctive relief and damages.

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33. NORTH CAROLINA

The only North Carolina legislation which controls the marketing of milk is N.C. Gen. Stat. Sec. 106-256.6 to 106-266.19.

A. Synopsis: North Carolina, a state of 5,451, 000 people, ranks twentieth in the production of milk in the United States. The North Carolina Milk Com­mission with its authority to control prices, has been in existence since 1953.

B. Control Agency: North Carolina Milk Commission.

l. Number of meITlbers: Ten (10).

2. Method of selection: Three members of the NCMC are appointed by the governor, three are appointed by the Commissioner of Agriculture, two are appointed by the lieutenant governor, and two are appointed by the speaker of the House of Representatives.

3. Qualifications: Five ITlembers of the NCMC are public members with no financial interest or involvement in the production or ITlarketing of milk. The reITlaining ITleITlbers are two Grade A producers, two processor-distribu­tors or employees thereof, and a retailer of fluid milk. Which members are appointed by the various state officers is detailed by legislation.

4. Terms of office: The members of NCMC serve four-year staggered terms.

C. Price Regulation:

1. Initiation and termination: The NCMC may excercise it authority to establish prices in the various ITlarkets of the state only after a public hear­ing is held. The NCMCmay call a public hearing upon its own motion and must call one upon the written application of a producers' association supply­ing, in the opinion of the commission, a substantial proportion of the milk consumed in the market concerned. If no producers' accociation exists in the market, the NCMC shall call a public hearing upon the written application of produc er s supplying a substantial proportion of the milk in the market or upon the written application of distributors distributing a substantial proportion of the milk in the market. The amendement and termination of orders establish­ing prices must follow a public hearing called in the same manner described above. Economic formulas may be used to establish prices.

2. Scope: The NCMC is authorized to fix the prices to be paid to pro­ducers by distribu tors. It may also fix the maximUITl and minimuITl wholesale and retail pr ic e s.

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D. Trade Practice Regulation: It is illegal for a distributor, producer-dis­tributor, or retailer to sell milk below cost for the purpose of injuring, har­assing, or destroying competition. The selling of milk below cost as a "loss leader" is also prohibited~

E. Enforcement:

1. Regulations: The NCMC may make, adopt, and enforce all rules, regulations, and orders necessary to carry out the statutory provisions.

2. Investigations: The NCMC may subpoena witnesses, records, books, and accounts, administer oaths, and conduct hearings. It shall have access to premises and may inspect and copy books and records therein. Processors and distributors must also file confidential reports regularly with the Commissioner of Agriculture.

3. Sanctions: For a violation of the statutes, the NCMC may decline to grant, or may suspend or revoke, a license, and may seek injunctive relief. In lieu of susupension, the NCMC may levy a monetary penalty. In addition, violation of the statut e s is a misdemeanor.

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34. NOR TH DAKOTA

The only North Dakota legislation which controls the marketing of mI." N.D. Cent. Code Sec. 4-18.1-01 to 4-18.1-23.

A. Synopsis: North Dakota, a state of 635,000 people, ranks twenty-x. in the production of milk in the United States. The North Dakota Milk Sta ­ilization Board with its price control authority, has been in existence sinc~

1967.

B. Control Agency: North Dakota Milk Stabilization Board.

1. Number of members: Five (5).

2. Method of selection: The five members of the NDMSB are appoint­ed by the gove rno r.

3. Qualifications: Each of the following three members must be one of several nominated by a designated industry association. (1) one dairy farmer who sells to a processor, (2) one processor, and (3) one retailer. The remaining two members of the NDMSB must be consumers not engaged in the milk business. No member may have held public office during the two years immediately preceding his appointment, nor hold public office during his term. At no time may more than three members reside in the same congre s sional district.

4. Terms of office: Members of the NDMSB serve five-year, stag­gered terms.

C. Price Regulation:

1. Initiation and termination: Price regulations are implemented by stabilization plans applicable to mar~ting areas de signated by the NDMSB. Before the board may adopt, amend, or repeal an y stabilization plan or reg­ulation, it must give public notice and conduct a public hearing. Such a pro­ceeding may be initiated by the board on its own motion or upon the request of any person if the board concurs. Whenever a public hearing is scheduled for the purpose of establishing prices, the NDMSB may appoint a local advisory board to inform the NDMSB of current conditions in the marketing area.

2. Scope: Each stabilization plan must establish the minimum milk prices to be paid to dairy farmers by processors, to processors and distri­butors by retailers, and to any person by consumers. Each stabilization plan may also include provisions regulating the minimum price of milk pur­chased (1) by processors from sources other than dairy farmers, (2) by pro­cessors from other processors, (3) by distributors from other distributors

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and (4) in any sale. In any marketing area, a stabilization plan may also (1) establish the maximum price at which milk may be sold to anyone by a pro­cessor, distributor, or retailer, (2) authorize quantity discounts by processors and distributors at rates fixed by the NDMSB, (3) contain a formula to be used in computing the minimum prices payble to dairy farmers, (4) provide for a clas sified pricipg system predicated upon utilization, and (5) provide for a market-wide pooling arrangement or a handler pooling arrangement.

D. Trad,e Practice Regulation:

1. Discrimination: No retailer may sell milk of one brand at a price which is di fferent from the price charged by such retailer for an equal quantity of a product which is of the same type, quality, or grade, but of a different brand, unless such price differential is equal to the difference in the prices paid by the retailer for the products in question.

2. Gifts and loans: The NDMSB may prohibit or regulate unfair practices designed to avoid the minimum prices set by it. Such practices include a dealer furnishing free equipment or services to a retailer, the giving of a free milk product to a customer, the making or renewal of loans, or the giving of financial assistance in any other form by a dealer to a retailer, and the giving of gifts by dealers to retailers.

3. Discounts and rebates: The NDMSB may prohibit or regulate practices designed to avoid minimum prices, such as discounts, rebates, and advertising or display allowance s.

4. Combination sales: The NDMSB may prohibit or regulate practices designed to avoid minimum prices by selling milk in combination with any other product or service or by selling any product or service at a price which is available only to purchasers of a milk product.

5. Other regulations: The NDMSB may prohibit or regulate any practice designed to subvert the established prices. Such practices include, but are not limited to, the furnishing of signs by a dealer to a retailer, the selling, leasing, renting, or lending of equipment by a dealer to a retailer, the requiring of deposits on returnable containers, payments by dealers to others closely connected with retailers for services for the purpose of induc­ing the recipient to influence the decision of a retailer relative to the brands of milk to be purchased and resold by such retailer, or relative to the amount of space to be allocated to any brand of milk.

E. Enforcement:

1. Regulations: Subsequent to public notice and hearing, the NDMSB

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may adopt, amend, or repeal rules of practice, regulations, or stabilization plans.

2. Investigations: The NDMSB may hold hearings, administer oaths, subpoena witnesses, and examine books and records. It may authorize the entry and inspection of premises and the inspection and copying of books, papers, accounts, records, and documents. Licensees are required to main­tain records according to the statutory provisions. Information obtained from the se source s must remain confidential.

3. Sanctions: The NDMSB may refuse to grant or may suspend or revoke a license. In lieu of suspension or revocation, it may assess a civil penalty. The board also has authority to seek any legal or equitable relief, including injunction. It is a misdemeanor to violate the confidentiality require­ment of an inve stigation. The re are no othe r t riminal penaltie s.

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1

35. OHIO

The only Ohio legislation which expressly controls the ITlarketing of ITlilk is Ohio Rev. Code Ann. Sec. 1331.15 and 1331. 99 (Page).

A. Synopsis: Ohio, a state of 10,759,000 people, ranks seventh in the produc­tion of ITlilk in the United States. The present ITlilk ITlarketing legislation has re­ITlained substantially unchanged since 1953.

B. Control Agency: None.

C. Price Regulation: Ohio law does not provide for the regulation of milk prices.

D. Trade Practice Regulation:

1. Discrimination: No person engaged in the business of buying ITlilk ITlay, for the purpose of creating a ITlonopoly, or to restrain trade, or to prevent or limit cor.npetition, or to destroy the business of a cOITlpetit or, discriminate bet­ween different sections, localities, cOITlmunities, or cities of the state, by pur­chasing such COITlITlodity at a higher price or rate in one locality than in another, after making due allowanc e for the difference in the actual costs of transportation frOln the locality of purchase to the locality of manufacture.

2. Other regulations: There are nUITlerous provisions in Ohio law which do not expressly refer to milk but nonetheless indirectly affect the marketing of ITlilk. These include Ohio Rev . Code Ann. Sec. 1331.01-1331.14 (Monopolies),4l65.01-4165 . 04 ( Deceptive Trade Practices).

E. Enforcement: Violation of the above trade practice regulation 1S a ITlis-demeanor .

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36. OKLAHOMA

The only Oklahoma legislation which controls the marketing of milk is Okla. Stat. Ann. tit. 2, Sec. 419.1-419.8 (West).

A. Synopsis: Oklahoma, a state of 2,712,000 people, ranks twenty-sixth in the production of milk in the United States. The Departm.ent of Agriculture administers the present trade practice regulations which have been in effect since 1955.

B. Control Agency: Deparment of Agriculture.

C. Price Regulation: Oklahoma law doe s not provide for the regulation of m.ilk prices.

D. Trade Practice Regulation:

1. Sales below cost: It is illegal for any wholesaler, processor, or distributor to sell m.ilk for less than cost or to sell expendable supplies to retailers at less than cost plus a m.arkup of five per cent.

2. Gifts and loans: It is illegal for any wholesaler, processor, or distributor to guarantee or procure another to guarantee any loan or the pay­ment of any financial obligation of a retail dealer in dairy products. Oklahoma also regulates the furnishing, giving, renting, leasing, and lending to a retail dealer in dairy products any equipm.ent, fixtures, supplies, or other things of value by other members of the dairy industry.

3. Discounts and rebates: It is illegal for any wholesaler, processor, or distributor to give any bonus, prem.iurn., or com.pensation to a retail dealer, to grant to any retailer any secret discount, to m.ake any rebate, or to perm.it any deviation form. the price at which he furnishes dairy products of the sam.e quality, brand, and quantity to other retail dealers in the same county.

4. Other regulations: It is illegal for any wholesaler, processor, or distributor to payor credit a retail dealer for any advertising, display, or distribution service, to sell to a retail dealer on consignm.ent or on any other basis other than a bona fide sale, or to use or employ any device or scheme to subsidize in any m.anner any retail dealer. Oklahom.a law also regulates the sale of fixtures and equipm.ent to retail dealers by other mem.bers of the industry.

E. Enforcement:

1. Regulations: Oklahoma law does not provide for the promulgation

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of regulations by the Department of Agriculture.

2. Investigations:

Ct. Price lists: Every wholesaler, processor, and distributor must file with the department a schedule of the prices for each county in which he sells or offers dairy products for sale. The schedules can be freely amend­ed and supplemented. The county filed price for dairy products must be the lowest price at which such products may be sold to all purchasers of the class for which such prices are filed in the county named in the filed schedule.

b. Inspections: The department has authority to subpoena books and records of any wholesaler, processor, or distributor.

3. Sanctions: The department may file complaints, informations, and petitions seeking injunctive or other relief. Any person injured or who shall be injured may seek injunctive relief and re cover damages. Violation of the statutory provisions is a misdemeanor.

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37. OREGON

The only Oregon legislation which controls the marketing of milk is Or. Rev. Stat. Sec. 583. 001-993.

A. Synopsis: Oregon, a state of 2,288, 000 people, ranks twenty-ei~th in the production of milk in the United States. The present milk marketing leg­islation, the Milk Audit and Stabilization Act, has remained substantially un­changed since it was enacted in 1967. The Department of Agriculture admini­sters the· present milk price and milk trade practice regulations. The latter were enacted by the state legislature in 1977.

B. Control A gency: Department of Agriculture.

C. Price Regulation: The department is authorized to establish, after public notice and a public hearing, statewide minimum prices for the sale of class I milk by producers to handlers and between handlers, i. e., at the producer level and the wholesale level. Upon the petition of producers in any market area (embracing one or more primary markets), the department must conduct a referendum to determine whether or not a market pool should be established. Unless two-thirds of the producers voting disapprove, the market pool must be established. Oregon legislation also provides for the equalization of returns through quotas.

D. Trade Practice Regulation: Oregon law forbids any handler, producer­handler, jobber, or other person to sell fluid milk to retailers or other milk distributors at a price less than the amount paid for the raw fluid milk product, plus the cost to manufacture and distribute the product. Sales below cost may take place in derogation of this provision if the price is not less than the price offered to the customer by another person selling milk at a price lawfully established pur suant to the provision.

E. Enforcement:

1. Regulations: The department has authority to ~. ssue orders and regulations. However, any order or regulation made pursuant to a statutory provision requires public notice and a public hearing.

2. Investigations: Licensees are required to keep designated records and file regular reports based thereon. The department is required to audit handler, producer-handler, and jobber records annually and may inspect appropriate premises in conjunction therewith. Every handler, producer­handler, jobber, and store must keep accurate records of transactions con­cerning fluid milk.

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3. Sanctions: The deparnnent lllay enforce the statutory prOVISIOns by injunction or other appropriate proceedings. Violation of any statute is a llli sdellleano r.

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38. PENNSYLVANIA

The only Pennsylvania legislation which controls the marketing of milk is Pa. Stat. Ann. tit. 31, Sec. 700j-lOI to 700j-1302 (Purdon).

A. Synopsis: Pennsylvania, a state of 11, 827, 000 people, ranks fifth in the production of milk in the United States. The present milk marketing legisla­tion, the Milk Marketing Law, replaced the Milk Control Law of 1937 in 1968. The Milk Marketing Board now administers the milk price provisions.

B. Control Agency: Milk Marketing Board.

1. Number of members: Three (3).

2. Method of selection: Members of the MMB are appointed by the governor.

3. Qualifications: One member of the MMB must be appointed to re­present consumer interests. All members must be United States citizens and must not hold any other public office while a member of the board.

4. Terms of office: Members of the MMB serve six-year, staggered terms.

C. Price Regulation:

1. Initiation and termination: After notice and public hearing and upon written findings of fact, the board must establish prices, pursuant to the legislation, in designated marketing areas. Orders establishing such prices may be amended upon the board ' s own motion or upon the application of any person.

2. Scope: The MMB must establish minimum, and may establish max­imum, whole s ale and retail prices, including the prices for sales by milk dealers or handlers to other milk dealers, handlers, consumers, or stores and by stores to consumers . The MMB must also establish the minimum prices to paid to producers by milk dealers and handlers.

D. Trade Practice Regulation: Deviation from fixed prices whether by any discount, premium, rebate, free service, trading stamps, advertising allow­ance, or extension of credit is illegal. It is also illegal to subvert the fixed prices by selling milk together with another commodity or service at a com­bi !led price which is more or les s than the aggregate of the price s at which the milk and the commodity or service would be sold separately.

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I '

E. Enforcement:

1. Regulations: The board must adopt and enforce all rules, regula­tions, and orders necessary to implement the statutory provisions.

2. Investigations: The MMB may bold hearings, administer oaths, subpoena witnesses, and examine books and records. It may authorize the entry and inspection of premises and the inspection and copying of books, papers, records, and documents. Information obtained therefrom must re­main confidential. Milk dealers must keep specified records and make reg­ular reports.

3. Sanctions: The MMB may refuse to grant or may suspend or revoke a license. Ln lieu of suspension or revocation, it may assess a civil penalty. The board and any person may institute any legal or equitable pro­ceeding to enforce compliance with the statutory provisions. It is a misde­meanor to violate any statutory provision including the requirement of confi­dentiality as regards information obtained by investigation by the MMB.

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39. RHODE ISLAND

The only Rhode Island legislation which controls the marketing of milk is R.1. Gen. Laws Sec. 6-13-2.1 and 21-4-1 to 21-4-31.

A. Synopsis: Rhode Island, a state of 927, 000 people, ranks forty-ninth in the production of milk in the United States. The present milk marketing legislation, The Emergency Milk Price Co ntrol Act, has remained substan­tially unchanged since it was enacted in 1962. The Emergency Milk Control Board administers the present milk price and milk trade practice provisions.

B. Control Agency: Emergency Milk Control Board.

L Number of members: Seven (7).

2. Method of selection: Three members of the EMCB are ex officio members. The remaining four members are appointed by the governor.

3. Qualifications: The ex officio members of the EMCB are the director of health or a member of his department appointed by him, the dir­ector of natural resources or a member of his department appointed by him, and the attorney general or an assistant attorney general named by him. One appointive member must be a Rhode Island resident who holds a milk plant permit or a milk distributor's permit or who is an officer or principal of a company which does. The two remaining members must be qualified by training, experience, or interest in the milk industry, to represent the consuming public.

4 . Terms of office: The appointive members of the EMCB hold office during the term of the governor .

C. Price Regulation:

1. Initiation and termination: The EMCB may regulate prices only after it declares an emergency, as defined by statute. Such an emergency cannot be declared unless the EMCB calls a hearing upon the petition of not less than 51% of all Rhode Island processors, not less than 51% of all permit­tees who have at least one milk plant in Rhode Island, not less than 51% of all Rhode Island milk prducers, not less than 250 milk consumers, or upon the direction of the director of health or director of natural resources. 1£ the EMCB declares an emergency and the governor does not veto this det­ermination . the EMCB may then regulate prices according to the statutory provlslOns. Orders establishing prices may not be amended or terminated without public notice or a public hearing. The board may terminate the orders at any time but all orders automatically end one year from the day of issuance. They may not be re-established for six months.

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2. Scope: The EMCB must determine and fix the minimum price margins for the sale of milk over and above the class I price to producers of 3.5% butterfat content as established from time to time by applicable federal marketing orders for milk sold in the state of Rhode Island. Price margins must be established at all levels other than the producer level.

D. Trade Practice Regulation: It is illegal to sell milk below cost without justification, and to try to evade this proscription by discounts or rebates, free services, advertising allowances, or combination prices.

E. Enforcement:

1. Regulations: The EMCB may make reasonable regulations nec­essary and appropriate to effectuate the policy and provisions of the statutes or any ruling or order issued thereunder.

2. Investigations: The EMCB may hold hearings, subpoena witnesses, and examine books and records. It may authorize the entry and inspection of premise s and the inspection and copying of books, financial records, and accounts. Information obtained from these sources must remain confidential.

3. Sanctions: It is a misdemeanor to violate any statutory provision. The director of natural resources may also seek equitable relief.

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40. SOUTH CAROLINA

The only South Carolina legislation which controls the marketing of milk is S. C. Code Sec. 39-33-10 to 39-33-1060.

A. Synopsis: South Carolina, a state of 2, 818, 000 people, ranks fortieth in the production of milk in the United State s. The pre sent milk marketing legislation, the South Carolina Dairy Industry Stabilization Act of 1968, supplemented legisla­tion that had remained substantially unchanged since 1953. The State Dairy Com­mission administers the present milk price and milk trade practice provisions.

B. Control Agency: State Dairy Commission.

1. Number of members: Ten (10).

2. Method of selection: The commissioner of agriculture is an ex officio member of the SDC. The remaining nine members are appointed by the governor.

3. Qualifications: Three members of the SDC must be dairy producers, one from each of three zones designated by the statutes. One member of the SDC must be engaged in the business of processing or manufacturing and distributing milk or milk and frozen desserts or frozen dairy foods, while another member must be the operator of a retail store. Four members of the SDC must be representatives of the consuming public. All persons who serve on the SDC must be residents of the state.

4. Terms of office: Appointive members of the SDC serve three-year terms.

C. Price Regulation:

1. Initiation and termination: The SDC is authorized to establish prices in controlled markets designated by it, only after public notice and public hearing. Such a hearing may be called upon the SDC 1 S own motion or upon written applica­tion of producers supplying, in the judgment of the SDC, a substantial portion of the milk consumed in any market or markets in the state. Withdrawal of the exerc ise of the SDC 1 S authority must follow a public hearing called in the same manner.

2. Scope: The SDC is authorized to establish the mlDlmum prices to be paid by distributors to producers and by those who buy milk from wholesalers. If for some reason price controls are not otherwise in effect, the SDC may, after a public hearing with notice, establish the prices below which all person may not purchase or sell milk.

D. Trade Practice regulations:

1. Sale s below co st: It is unlawful for any store or retail oulet to sell milk below co st without justification.

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l

2. Discrimination: No store may sell different brands for less than the price at ;;hlch it s~lls competing brands and cannot discriminate in terms or conditions of sale against competing brands of milk, sold by it. It is unlawful for any person to transact a sale of milk which to his knowledge diecriminates against the comp2titors of the purchaser in that the purchaser receives an added discoW1t, rebate, allowance, or advertising service charge not available to comp2titors who buy goods of like grade, quality, and quantity . It is also unlawful to unjustifiably discriminate against customers by selling milk at lower prices than those exacted by the same person elsewhere in South Carolina.

3. Discounts and ,,:~Sate_s.:. It is unlawful to unjustifiably g:;:ant any secret rebate, unearned discount, free service, financial aid, free fixtures or equipment, or any other thing of value to any consumer in connection with the sale of milk.

4. Other r e gulations: South Carolina law regulates in detail the advertising arrange~~tsbe~~;'~e~bers of the milk industry, the furnishing of advertiSing mate rial to whole sale consumer s, the sale, rental, and lease of fixture sand equipment to conSUlners or prospective consumers, the servicing of equipment by members of the dairy industry, and the payment of anything of value to whole sale consumers for display or storage space .

E. Enforcement: -~.--~--

1. Re.sul a tions : The SDC is authorized to issue such orders and proulgate rule s and regulations as shall be nece s sary to make the statutory provisions e ffective and to insure the proper enforcement thereof.

(a) Pri~2:ists: Every distributor-licensee must file with the SDC sche dules showing all prices of milk offered for sale by him.

(b) ~n.3'pect~ons: The SDC may hold hearings, administer oaths, sub­poena witn e sses, a uthorize the entry and inspection of premises, and authorize the insp2ction and copying of books and records. Distributors may be required to fil e r e gular, written reports and licensees tnay be required to fil e regular, written reports and licensee s may be required to maintain de signated records . Nothing divulged to or discovered by the SDC may be publicly revealed.

3. San.E.!io~~: The SDC may refuse to grant and may suspend or revoke license s for violation of the statutory provisions. In lieu of silspension or revocation, the SDC may impose civil penalties. The SDC may institute any action at law or e quity to enforce compliance with any statutory or regulatory provision. A violation of any provision is a misdemeanor.

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41. SOUTH DAKOTA

The only South Dakota legislation which controls the marketing of milk is S. D. Compiled Laws Ann. Sec. 37-3-1 to 37-3-72.

A. ~~oJ2sis: South Dakota, a state of 683,000 people, ranks twenty-fifth in the production of milk in the United State s. The pre sent milk marketing legis­lation' the Dairy Industry Marketing Act of 1966, authorizes the Secretary of Agriculture and the Dairy Products Marketing Commission to administer the present milk price and milk trade practice provisions.

B. Contr.?~_~~~s:ie~: Secretary of Agriculture; Dairy Products Marketing Commi s sion.

1. Number of members: The DPMC is composed of eight (8) members.

2. Metho::l of selection: member of the commission. governor.

The Secretary of Agriculture is an ex oq~cio The other seven members are appointed by the

3. Qua~~ati~~: One member of the commission must be a dairy processor, one member must be an active grade A milk producer, one member must be a retailer of dairy products, and one member must be an accountant, an auditor, or a dairy economist recom..rnended to the governor by the secretary of the state department of agriculture and secretary of the state department of commerce and consumer affairs. Three melnbers of the commission m'.lst be consumers who have never been connected with the pro­duction, processing, or distribution at wholesale or retail of dairy pro::lucts.

4. Terms of office: Appointive members of the DPMC serve five-year terms.

C. Pri5~--E-~K1!la~i0l!.: After investigation, public notice, and public hearing, the DPMC is authorized to e :-;· tablish the minimum dock price s and whole sale pric e s of milk in various marketing areas de signated by the commission.

1. Sales below cost: It is unlawful for any processor, distributor, or retailer to unjustifiably sell any dairy product for Ie ss than cost or to make or give any sPecial or secret reLate, payment, allowance, refund, commission, or unearned discount, whether in the form of money or otherwise, or to secret­ly extend to certain purchasers special services or privileges not extended to all purchaser s purchasing up::m like terms and conditions, or to enter into any con­tract or device, whereby a sale below cost is effected to the injury of a compet­itor. It is illegal for a processor, distributor, or retailer to unjustifiably sell dairy products at marginal or unreasonably low price s.

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2. Discrimination: No person may di scriminate in price between diferent localities of the state or between different persons within the state without just­ification. It is also unlawful to pay anything of value to or for the benefit of a customer in consideration for any services or facilities furnished by the cust­omer in connection with the handling of any dairy products unless the same con­sideration is available to all competing customers. Furthermore, it is illegal for a processor, distributor, or retailer to discriminate in favor of one purchas­er against another purchaser of dairy products for resale by furnishing any services or facilities in connection with the sale 1Lnless accorded to all purchasers on proportionally equal terms.

3. Gifts and loans: It is illegal for any processor or distributor to make or rene'v\' any money loans to any retailer in connection with the sale or distribu­tion of any dairy products.

4. Discounts and rebates: It is unlawful to attempt to evade the antidiscrim­ination provisions by a rebate, bonus, gift, or patronage dividend. It is also illegal for any processor, distributor, or retailer to pay, allow, or accept secret re bate 5, sec ret refunds, or unearned discounts whether in the form of money or otherwise in connection with the purchase, sale, or distribution of dairy products.

5. Other regulations: South Dakota legislation regulates the terms of credit a processor or d.istributor may extend to a retailer, the giving of exclusjve con­tracts in connection with price reductions or equipment leases, and the sale, rental, gift, and lease of equipment by members of the dairy industry.

E. Enforcement:

1. Regulations: The Sec retary of Agriculture is empowered to promulgate, such rules and regulations as are necessary to the proper administration and enforcement of the statutory provisions.

2. Jnvestigations: The commission may conduct hearings, administer oaths subpoena witnesses, and subpoena and examine records, books, papers, and documents. The secretary is empowered to require that processors, dis­tributors, and retailers file regular, written reports of designated information.

3. Sanctions: Civil penalties may be assessed by a circuit court against any person who violates any order and against processors, distributors, and re­tailers who fail to furnish regular, written reports as required by the regulations Th e secretary may enforce thp statutory provisions in any cri:minal or civil proceeding, may seek damages, and may suspend or revoke licenses. For designated discriminatory practices, a corporation :may have its charter annulled. Violation of any statutory provision is a class two misdemeanoro Private parties may seek injunctive relief and recover treble da:mages.

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42. TENNESSEE

The only Tenne s see legislation which controls the marketing of milk is Tenn. Code Ann. Sec. 52-301 to 5L- 341.

A. Synopsis: Tennessee, a state of 4,188,000 people, ranks eighteenth in the production of milk in the United State s. T he pre sent milk marketing legislation has remained substantially unchanged since 1955. The Commissioner of Agri­culture administers the present milk trade practice provisions.

B. Control Agency: Commissioner of Agriculture.

C. Price Regulation: Tennessee law does not provide for the regulation of milk price s.

D. Trade Practice Regulation:

1. Sales below cost: It is illegal for any processor, distributor, bulk milk handler, or retailer to sell milk for less than cost as defined by statute.

2. Discrimination: No processor or distributor may discriminate in price without justification, in the sale of milk between any of the towns or count­ies of the state of Tennessee.

3. Gifts and loans: No processor or distributor may give any retailer any free service or other thing of value such as, but not limited to, advertising allowances, advertising displays, compensation for jointly used advertising space, signs, brokerage fees, payments, sales commissions, free equipment, and rent for storage or display space.

4. Combination sales: No person may sell milk with any other com­modity or service at a combined price which is less than the aggregate of the prices for which such milk product and such other commodity or service are separately offered for sale.

E. Enforcement:

1. Regulations: The commissioner of agriculture has the power and duty to is sue rule sand regulati0ns for the enforcement of the statutory provisions.

2. Investigations:

a, Price lists: All processors and distributors must file with the commissioner a complete price list of all items of milk sold by them and all changes in and amendments thereto,

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b. Inspections: The comll1issioner may hold hearings, adll1inister oaths, subpoena witnesses, and inspect books, records, and property.

3. Sanctions: Violation of a statutory provision is a misdell1eanor. The commissioner may, in case of violation, seek equitable relief, including injunc­tion, and revoke licenses and registration privileges. Private parties may sue for injunction and treble dall1age s.

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43. TEXAS

The only Texas legislation which controls the marketing of milk is Tex. Rev. Civ. Stat. Ann. art. Sec.165-2 (Vernon).

A. Synopsis: Texas, a state of 12,237, 000 people, ranks ninth in the production of milk in the United States. The present milk marketing legislation has remain­ed in effect since 1934.

B. Control Agency: Milk Industry Board. A Milk Industry Board may be established in any county having a population of at least 290, 000 but not more than 300, 000 and in any county having a population of at least 42,128 but not more than 42,138.

1. Number of members: Each MIB is composed of five members.

2. Method of selection: Two members of each MIB are elected by con­tracting producers and two members are elected by contracting distributors. The fifth member, to represent consumers, must be elected by the other four members.

3. Qualifications: The consumer member of each MIB must be a resident of the sales area and have no connection, financially or otherwise, with the distribution of milk or products de rived therefrom.

4. Terms of office: None.

C. Price Regulation: Texas law does not provide for the regulation of milk prices.

D. Trade Practice Regulation: Any repre sentative group engaged in the milk industry in a proper county may submit to the MIB a proposed code or agree­ment of fair competition and trade practice s. A proposed code become s e££ec­tive after publ~c notice, a public hearing, approval of the board, approval of 10% of the distributors who distribute 60% of the milk, and approval of 51% of the produce rs who produce 70% of the milk . Any violation of an adopted code is an unfair method of competition.

E. Enforcement: Interested persons may seek injunctive relief for violation of any provision of an adopted code. Texas law does not provide a criminal sanction for violation of such provisions.

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l

44. UTAH

The only Utah legislation which controls the marketing of milk is Utah Code Ann. Sec. 4-20-1 to 4-20-25.

A. Synopsis: Utah, a state of 1,206, 000 people, ranks thirtieth in the pro­duction of milk in the United States. The present milk marketing legislation enacted in 1977, completely modified legislation that had been in effect since 1953. The Commissioner of Agriculture administers the present milk trade practice provisions.

B. Control Agency: Commissioner of Agriculture,

C. Price Regulation: Utah law doe s not provide for the regulation of milk prices.

D. Trade Practice Regulation: Utah law regulates agreements by processors, manufacturers, or distributors to furnish, service, repair, give, rent, lease, sell, or lend, any money, equipment, fixtures, supplies, or other things of value, to retailers or consumers.

E. Enforcement: The commissioner is authorized and empowered to enforce all laws and regulationsregarding the production, processing, and manufactur­ing, distribution, and sale of milk and dairy products.

1. Regulations: The commissioner may promulgate, and after a hearing, adopt rules and regulations to govern the facilities and methods under vbich dairy businesses must operate.

2. Investigations: In order to det ermine whether or not members of the industry are adhering to the above trade regulation, the commissioner has access to premises of appropriate members for the purpose of inspection.

3. Sanctions; The commissioner has authority to revoke licenses and seek injunctions. Private parties may also sue for an injunction and recover damages. A violation of the statutory provisions is a class B .misdemeanor.

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45. VERMONT

The only Vermont legislation which controls the marketing of milk is Vt. Stat. Ann. tit . 6, S:;c . 2678, 2751-2753, and 2921-2933.

A. ~~sis: Vermont, a state of 4 , 710,000 people, ranks fifteenth in the production of milk in the United States. The present milk marketing legislation has remained substantially cn-:hanged since 1965. The Milk Comtrol Board administers the present m .ilk price and milk trade practice regulations.

B. ~ontrol Agency: Milk Control Board.

1. Number of members: Thr e e (3).

2. Metho~~selectio::: The commissioner of agriculture is an ex officio member of th e MCB. The remaining two members are appointed by the governor.

3. Qualifications: None.

4 . .]'errl];s of office: Members of the MCB s e rve four-year, staggered terms.

1. ...!:;itiati~ and ter~inati~: Either upon a compaint or upon its own initiative , the MCB, after public notice and a hearing, rnay establish prices according to the statutes . The bas·:; for figuring such prices may be changed from time to time after public notice and hearing.

2. Sc op-:.: The MCB may fix the minimum and/or maximum prices to be paid to producer s by distributors and may fix the prices to be paid distribu­tor s by consumer s and other s with whom they deal.

D. Trade Practic e Regulation: A handler may not unjustifiably discriminate between differ--eti"tlC;'Cai"ities-ofthe state by purchasing milk at a higher price or rate in one locality than is paid for milk by such person in another locality, by purchasing milk at a lower price from one per son than is paid for milk to an­other pe rson, or by refusing to purchase milk under delineated circumstance s .

E. Enforcement:

1. P. e~u~tions..: The MCB may adopt, promulgate, and enforce such reascmable rule s and regulations as are deemed :i'.ece s sary to carry out the statutory pro v isions.

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2. Investigations: The MCB may conduct hearings, subpoena and examine under oath producers and distributors, subpoena their books, records, documents, correspondence, and accounts, and subpoena any other person it deems nec­essary to carry out the purposes and intent of the statutes.

3. Sanctions: The MCB may decline to grant or may suspend or revoke a license. The violation of any statutory provision is a misdeITleanor.

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46. VIRGINIA

The only Virginia legislation which controls the marketing of milk IS Va. Code Sec. 3.1-425 to 3.1-461.

A. Synopsis: Virginia, a state of 4, 967, 000 people, ranks nineteenth in the production of milk in the United States. The present milk marketing legisla­tion has remained substantially unchanged since 1934. The State Milk Com­mission administers the m.ilk price provisions.

B. Control Agency: State Milk Comm.ission.

1. Num.ber of m.em.bers: Eight (8).

2 , Method of selection: All m.embers of the SMC are appointed by the governor.

3. Qualifications: One m.ember of the SMC m.ust be a processor-distri­butor of m.ilk, two m.em.bers must be producers of m.ilk, and five m.em.bers must be consum.ers who have no connection financially or otherwise with the production or distribution of milk or products derived therefrom.. All m.em.bers of the com.m.is sion m.ust be re sidents of Virginia.

4. Terms of office: One consum.er m.em.ber of the com.m.ission appointed by the governor and designated as adm.inistrator by him., serves at the pleasure of the governor and for a term concurrent with the governor's term.. All other m.em.bers of the commission serve four-year, staggered term.s.

C. Price Regulation:

1. Initiation and termination: The SMC m.ay establish m.ilk prices only after investigation, public notice, and public hearing. A public hearing m.ay be called on He commission's own motion and m.ust be called upon the written application of a producers' association supplying, or distributors distributing, in the judgment ci the comm.ission, a substantial proportion of the m.ilk C'onsum.­ed in the affected m.arket. If no such produce rs' association exists, the com.mis -sion must call a public hearing on the written application of produce rs supplying a substantial proportion of the m.ilk consumed in the market. Prices m.ay be established by an econom.ic form.ula adopted after a public hearing. The com.­mission may withdraw the exercise of its authority after a public hearing if it find sit is in the public inte re st to do so.

2. Scope: The SMC m.ay establish prices to be paid to producers by dis­tributors, the m.i nirnum. and maximum. wholesale prices, and the m.axim.um retail prices. The comm.ission m.ay not establish m.inim.um. retail prices except on an em.ergency basis, as defined by law.

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D. Trade Practice Regulation: Virginia law does not provide for the regula­tion of trade practice s between members of the milk industry.

E. Enforcement:

1. Regulations: The co ... nmission is vested with the power to make, adopt, and enforce all rules, regulations, or orders necessary to carry out the pur­poses of the milk law.

2. Investigations: The SMC may hold hearings, administer oaths, sub­poena witnesses, and examine the bo )ks and accounts of producers and distribu­tors. It may authorize the entry of premises and the inspection of books and records. Information obtained therefrom must remain confidential.

3. Sanctions: It is a misdemeanor to violate any statutory prov] sion. The c ommission may seek an injunction to enforce compliance with the law.

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47. WASHINGTON

Washington, a state of 3,544, 000 people, ranks twelfth in the production 01 milk in the United State s. The Washington State Milk Marketing Act, enacted in 1963, failed to become law by reason of a referendum submitted to the people. Pre sently, Washi.ngton law doe s not provide for the regulation of milk price s or milk trade practices.

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48. WEST VIRGINIA

We st Virginia, a state of 1, 803,000 people, ranks forty- second in the produc­tion of :milk in the United States. Presently, West Virginia law does not pro­vide for the regulation of :milk prices or :milk trade practices.

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49. WISCONSIN

The only Wisconsin legislation which controls the marketing of 'milk is Wis. Stat. Ann. Sec. 93.01 to 93.25, 96.01 to 96.24, and 100.201 to 100.26 (West).

A. ~nopsis: Wisconsin, a state of 4,967, 000 people, ranks first in the pro­duction of milk in the United States. The present milk marketing legislation, the Agricultural Marketing Act, has remained substantially unchanged since it was enacted in 1961. The Secretary of Agriculture administers the present milk price and milk trade practice regulations.

B. ~ontrol Agenc y: Sec retary of Agriculture.

C. Price Reguldtion:

1. Initiation: After public notice and a hearing called upon the petition of 5% or 100, whichever is less, of milk producers in an affected marketing area, the secretary may establish prices as provided by law through a marketing order.

2. Scope: Marketing orders may establish minimum prices at which milk may be purchased from milk producers in a marketing area.

D. Trade Practice Regulation: In addition to othe r unfair trade practice s forbidden by law, the sec retary may include in any marketing orde r is sued under Wisconsin law provisions designed to correct any trade practice which affects the distributing or handling of milk within the state and which the secretary finds is unfair and detrimental to the effectuation of the declared purpose l> :)f Wisconsin law.

1. Sales below cost: No wholesaler may sell milk at a price less than co s t w ithout justification.

2. Discrimination: No wholesaler may, without justification, discriminate in price between different purchasers of milk of like grade and quality. Wisconsin law also forbids any person engaged in the business of buying milk for manufacture to discriminate in price between different lccalities or persons in the state, absent some justification designated by law.

3. Gifts and loans: No wholesaler may make payments of money, credit, gift s , or loans to retailers as rental for the storage or display of milk on the premises where the milk is offered for sale by the retailer. In addition, no wholesaler may give, offer to give, furnish, fil =lnce, or otherwise make avail­able to any retailer, anything of value in order to secure the patronage of the retailer or other person.

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4. Discounts and rebates: No wholesaler lTIay give or extend discounts or rebates to retailers or other wholesalers on lTIilk or give or extend to such pur­chasers any services connected with the delivery, handling, or stocking of such lTIilk e:~cept in accordance with published price lists.

5. Other regulations: Wisconsin law also regulates the furnishing of loans, equipment, repair services, and credit to a retailer by a wholesaler.

E. Enforcement:

1. Regulatioru;: The secretary may issue rules necessary for each order to facilitate the administration of the Wisconsin law.

2. Inve stigations:

a . Price lists: Wholesalers of lTIilk who do not have a principal busi­ness office in Wisconsin lTIust file with the departlTIent of agriculture or a deSig­nated agent, current price lists.

b. Inspections: The secretary is authorized to conduct hearings, ad­minister oaths, is sue subpoenas, and take te stimony . Furthermore, the secre­tary may require persons engaged in the milk business to file reports or answers to specific que stions as to any matter which the department lTIay inve stigate. Particularly, handler s and producer s of milk may be required to file such infor­mation and reports as may be reasonably necessary to assist him in carrying out his functions. Finally, the secretary has a right of entry for inspection and may copy any relevant documents in the possession or under the control of any person engaged in the milk business.

3 . Sanctions: The violation of any provision of the legislation or lawful order issued pursuant thereto, is a misdemeanor. The secretary is authorized to se e k an injunction or specific perforlTIance. Any corporation which violate s the prohibition against price discrimination between localitie s or persons, may have its certificate of authority or incorporation cancelled or revoked and may be enjoined from doing business in the state.

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50. WYOMING

The only Wyoming legislation which controls the marketing of milk is Wyo. Stat. Sec. 11-675 to 11-687.

A. Synopsis: Wyoming, a state of 374,000 people, ranks forty-eighth in the production of milk in the United States. Th(~ present milk marketing legislation, the Wyoming Dairy Marketing Act of 1971, authorizes the Board of Agriculture to administer the milk price provisions.

B. Control Agency: Board of Agriculture.

C. Price Regulation:

1. Initiation and termination: Upon the motion of any interested person and after inve stigation, public notice, and a public hearing, the board may issue marketing orders prescribing the extE:nt of price regulation. Established prices may be implemented through an economic formula. Price regulations are terminated in the same manner by whic 'J. they are adopted.

2. Scope: The board may establish the minimum prices at the whole­sale levels to be paid to producers, proces:;ors, or handlers for milk.

D. Trade Practice Regulation: Wyoming law does not provide for the regu­lation of milk industry trade practice s.

E. Enforcement:

1. Regulations: The board is authorized to adopt and enforce all rules and procedures necessary to carry out the?rovisions of the dairy marketing law.

2. Investigations: The board is authcrized to conduct hearings, to admin­ister oaths, to subpoena persons, books, documents, papers and records, and to require producers, processors, and handlers to keep records, make reports, and permit inspection and copying of records and other documents. All infor­mation obtained by the board must remain confidential.

3. Sanctions: The violation of any p:rovision of the milk law or a mark­eting order is a misdemeanor. The board may seek injunctive relief.

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APPENDIX A: STATE MILK CONTROL AGENCIES

State:

Alabama Alaska

Arizona Arkansas ' California Colorado Connecticut

Delaware Florida Georgia Hawaii

Idaho

Illinois Indiana Iowa

Kansas Kentucky Louisiana

Maine Maryland Mas sachusetts Michigan Minnesota Mis sis sippi Missouri Montana

Nebraska Nevada New HaITlpshire Ne w Jersey

New Mexico New York

Agency(s): No. of members:

Alabama Dairy Commission Alaska Milk Advisory Board Director, Division of Agriculture, Department of Natural Resources State Dairy Commissioner None Director, De partment of Food and Agri culture Commissioner of Agriculture Milk Regulation Board ComITlissioner of Agriculture None None Commissioner of Agriculture Division of Milk Control, Department of Agriculture Dairy Products Commission De partITlent of Agriculture None None Division of Dairy Trade Practices, Department of Agriculture State Dairy Commissioner Milk Marketing and Antimonopoly Commission Dairy Stabilization Board C oITlmis sioner of Agriculture Maine Milk Commission None Milk Control Commission None Commissioner of Agriculture None Director of Agriculture Board of Milk Control, Department of Business Regulation None State Dairy Commission None Director, Division of Dairy Industry, Department of Agriculture None Division of Milk Control, Department of Agriculture and Markets

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5 5

9

11

6 8

5

3

5

3

State:

North Carolina North Da kota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota

Tennessee Texas Utah Vermont Virginia Washington We st Virginia Wisconsin Wyoming

Agency(s):

North Carolma Milk Commission Milk Stabilization Board None Department of Agriculture Department of Agriculture Milk Marketing Board Emergency Milk Control Board State Dairy Commission Dairy Products Marketing Co:m:mission Sec retary of Agriculture Commissioner of Agriculture Milk Industry Boards (local) Commissioner of Agriculture Milk Control Board State Milk Commission None None Sec retary of Agriculture Board of Agriculture

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-

No. of ITlembers:

10 5

3 7

10 8

5

3 8

APPENDIX B: STATE MILK PRICE CONTROL LEGISLATION

Explanation of symbols:

1::- -The state legislature has authorized the establishment of the minimum price of milk to be paid to producers.

W - - The state legislature has authorized the establishment of the minimum and/or maximum price of milk to be paid by retailers to wholesalers, or by wholesalers to anyone other than producers. ~ - The state legislature has authorized the establishment of the minimum

and / or maximum price of milk to be paid by the ultimate consumer. X - - The state legislature has not authorized the regulation of milk price s.

State: Extent of price controls~':

Alabama ........ . Alaska ..... . ..... ... . .. . . ................. . Arizona. . . . . . .. . ......................... . Arkansas ....... . .......... . .. . ............ . California .... ............................. . Colorado ....... . .......................... . Connecticut ......... . ..... ... .............. . Delaware .............. , .................. . Flo rida ................................... . Georgia ..................... . Hawaii ........... . . . ...................... . Idah o .. .. ................................. . Illinois ....... . .. ... ...... , ., ............ . . . Indiana ..... . .............................. . Iowa ...... . ......... ... ................... . Kansas ........ . ................. . . . ....... . Kentuc ky . . ................................ . Lo ui s iana ................................. . Maine . .................................... . Maryland .......... . ....................... . Ma s sachusetts. . . . . . . ...... . . .. ........... . Michigan .................................. . Minne sota ... . . . . . ............. . ........... . Mississippi ....................... , ........ . Mis souri .................................. . 1\1ontana .................... . .............. . Nebraska .................................. . Nevada ... . .... . ........................... . New H amphsire ................. . .......... . New Jersey ......... . ...................... . New Mexico ................................ .

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PWR X X X

PWR X X X X X P X X X X X X P

PWR X

PWR X X X X

PWR X

PWR X

PWR X

State: Extent of price controls >:' :

New York ....................................... . North Carolina. . . . . . . . . . . . . . . . . . .. . ............ . North Dakota .................................... . Ohio ..... . ............ . ........... .. .... . ...... . Oklahoma ............................. • .......... Oregon ....... " ................................ . Pennsylvania .................................... . Rhode Isl<itnd ..................... . ............. • . South Carolina ....... . . . ... . .................... . South Dakota . .. . .. . ............................. . Tennessee .... " ......... . ................•.....• Texas ...... . ............ . ...........• . ............ Utah ............................. . .....•......... Ve rmont . . . ... . .................................. . Vir ginia ......................... . ....•...•....... Washington ......... . ............................ . West Virginia .. . ................................. . Wisconsin .............. . .... 0 ••••••••••••••••••••

Wyoming ... . .... . .................... . .....•.....

'!'A s suming complete utilization of legislative authorization.

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I'

P PWR PWR

X X

PW PWR PWR PWR

W

X X X

PWR PWR

X X P

PW

APPENDIX C: PRELIMINARY STATE STATISTICS, 1975

Number of milk Population cows on farms 1 Milk production2 Rank in milk

State (in thousands) (in thousands) (million lb. ) ----Eroduction

Alabama 3,614 91 686 35 Alaska 352 1.6 16.8 50 Arizona 2, 224 67 840 33 Arkansas 2, 116 90 707 34 California 21,185 800 10,853 2 Colorado 2,534 75 870 32 Connecticut 3,095 65 613 37

I Delaware 579 12.5 133 47 -.D

Florida 8,357 198 1,958 16 0 I

Georgia 4,926 129 1,954 17 Hawaii 865 13. 1 146 46 Idaho 820 147 1,535 22 Illinois 11, 145 255 2,560 11 Indiana 5, 311 215 2,210 14

Iowa 2,870 399 3,916 8 Kansas 2,267 144 1,403 24 Kentucky 3,396 287 2,319 13 Louisiana 3, 791 136 1,054 27 Maine 1,059 60 619 36 Maryland 4,098 140 1,555 21 Ma s sachusetts 5,828 55 601 38 Michigan 9, 157 420 4,434 6 Minnesota 3,926 884 8,946 4 Mis sis sippi 2,346 122 876 31

I

'" I-I

Number of milk Population cows on farms! Milk production2

State (in thousands) (in thousands) (million ibs. )

Missouri 4,763 306 3, 021

Montana 748 27 284

Nebraska 1,546 152 1,431

Nevada 592 14 167

New Hampshire 818 33 343

New Jersey 7,316 47 527

New Mexico 1, 147 32 368

New York 18,120 917 9,904

North Carolina 5,451 153 1,602

North Dakota 635 122 924

Ohio 10,759 400 4,254

Oklahoma 2,712 119 1,060

Oregon 2,288 91 990 Pennsylvania 11,827 699 7, 140

Rhode Island 927 5. 9 63

South Carolina 2, 818 57 510

South Dakota 683 158 1,370

Tennessee 4, 188 215 1,875

Texas 12,237 335 3,221

Utah 1,206 79 919 Vermont 471 193 2,009

Virginia 4,967 158 1,752

Washington 3,544 181 2,322

We st Virginia 1, 803 441 347

Wsconsin 4,607 .1 ,812 18,900

Wyoming 374 11.8 110

1 Average number on farms during year, excluding heifers not yet fresh. 2 Excludes milk sucked by calves.

Rank in milk ---.E.roduction

10 44 23 45 43 39 41

3 20 29

7 26 28

5 49 40 25 18

9 30 15 19 12 42

1 48

Sources: U. S. Bureau of the Census, Statistical Abstract of the United States: 1976. (97th edition. ) Washington, D. C., 1976. United States Department of Agriculture, Agricultural Statistics, 1976. Washington, D.C . , 1976.