SB 0375 - Fiscal Note

Fiscal Note - SB 0375 - Establishes the Southern Dairy Compact

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 1756-01

BILL NO.: SB 375

SUBJECT: Southern Dairy Compact

TYPE: Original

DATE: February 9, 1999

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
General Revenue	($3,600)	($4,800)	($4,800)
Total Estimated Net Effect on All State Funds	($3,600)	($4,800)	($4,800)

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
None	$0	$0	$0
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
Local Government	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 4 pages.

FISCAL ANALYSIS

ASSUMPTION

The Office of the Administration assumes they would not be fiscally impacted by this proposal.

The Department of Agriculture (AGR) assumes they would incur costs for three delegates to attend the Southern Dairy Compact Commission meeting. The delegates would also be paid a $50 per diem. For purposes of the fiscal note, the AGR assumes the Commission would meet for two days, four times per year.

FISCAL IMPACT - State Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
GENERAL REVENUE
Cost - AGR
Delegate per diem and meeting costs	($3,600)	($4,800)	($4,800)
FISCAL IMPACT - Local Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
	0	0	0
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.

DESCRIPTION

This bill enables the State of Missouri to enter into the Southern Dairy Compact. The compact will become effective when enacted into law by at least two other states within the compact group and when the consent of Congress has been obtained.

States participating in the compact will regulate the price paid dairy farmers for their product. Assuring a fair and equitable milk price for dairy farmers ensures their ability to provide milk to the market and the vitality of the southern dairy industry.

DESCRIPTION (continued)

A commission to be known as the Southern Dairy Compact Commission is created to administer the compact, composed of delegations from each participating state in the region. All actions of the commission are to be by majority vote of attending delegations, except for establishment or termination of an over-order price or commission marketing order, and the adoption, amendment, or rescission of the commission's by-laws, which require a two-thirds vote of delegations present. Establishment of a regulated area requires an affirmative vote of the affected state's delegation.

The commission is to annually elect a chairperson, vice-chair- person, and a treasurer. The commission is to appoint an executive director. Annually the commission is to file a report with the Secretary of Agriculture of the United States, and with each participating state's governor, both houses of the legislature, and the Director of Agriculture.

The commission's powers, duties, rule-making procedure, enforcement procedures, and finances are specified in the bill.

Any participating state may withdraw from the compact by enacting a statute repealing the provisions of this bill; however, the withdrawal will not take effect until one year after written notice of the withdrawal has been provided to the commission and the governors of all participating states.

Missouri delegates are to be appointed by the Governor and confirmed by the Senate. Delegates are to include one dairy producer currently engaged in dairy production, one consumer representative, and one dairy processor. Delegates will serve four year terms and be replaced in the event of a vacancy. Delegates are to receive per diem not to exceed $50 for service and traveling expenses incurred in the performance of their duties. The Department of Agriculture is to provide funding, subject to appropriation, as necessary, to the delegation during its term.

No person is to violate the Southern Dairy Compact or rules adopted pursuant to the compact. In addition to other penalties provided by law, a fine of $1,000 may be imposed for each violation, licenses may be revoked or suspended, or an additional fine may be imposed in lieu of revocation or suspension. Each day on which a violation occurs is a separate violation.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.

SOURCES OF INFORMATION

Office of Administration

Department of Agriculture

Jeanne Jarrett, CPA

Director

February 9, 1999