North Dakota Administrative Code Title 19 - Dairy Promotion Commission
NDAC Title 19 – Dairy Promotion Commission
Overview
Title 19 of the North Dakota Administrative Code establishes rules and regulations governing the North Dakota Dairy Promotion Commission (ND Dairy Commission). The Commission is responsible for administering programs to promote the dairy industry within the state, funded primarily by assessments on milk producers.
The authority for this administrative code flows from the North Dakota Century Code (NDCC) Chapter 4.1-25, which created the Dairy Promotion Commission and authorized it to collect assessments and fund promotional activities, research, and educational programs related to dairy.
Purpose of the Dairy Promotion Commission
Promote the dairy industry in North Dakota.
Increase consumer demand and public awareness of dairy products.
Fund research and marketing programs benefiting producers and the dairy sector.
Support educational efforts related to dairy nutrition and production.
Ensure fair and efficient collection of assessments from dairy producers.
Key Provisions of NDAC Title 19
1. Commission Structure and Authority
The Dairy Promotion Commission consists of appointed members representing dairy producers.
The Commission has authority to:
Adopt budgets.
Establish and collect assessments.
Contract for marketing, research, and promotion.
Conduct audits and investigations related to assessments.
Adopt rules consistent with state law.
2. Assessments on Milk Producers
A mandatory assessment (sometimes called a checkoff) is imposed on each hundredweight (cwt) of milk produced or marketed in North Dakota.
Assessment rates and collection procedures are specified.
Assessments fund promotional programs, research, and administrative costs.
Producers must remit assessments timely; failure may result in penalties or legal actions.
3. Exemptions and Refunds
Some producers or milk uses may qualify for exemptions or refunds under specific conditions (e.g., milk used for home consumption or non-commercial purposes).
Procedures to apply for refunds or claim exemptions are provided.
4. Records and Reporting
Producers and handlers must maintain accurate production and sales records.
The Commission may require periodic reports to verify assessments.
Auditing rights to ensure compliance.
5. Use of Funds
Funds collected are used for:
Marketing campaigns.
Nutrition education.
Research on dairy production and health benefits.
Administrative expenses of the Commission.
6. Enforcement and Penalties
The Commission may impose penalties for late or non-payment of assessments.
The Commission can pursue legal remedies to collect unpaid assessments.
Appeals processes are defined for contested assessments or penalties.
Legal and Administrative Context
Statutory Basis and Delegation
The ND Dairy Promotion Commission operates under NDCC Chapter 4.1-25, which authorizes the imposition of assessments and the creation of administrative rules in Title 19. The delegation of authority to the Commission to adopt such rules is recognized as a valid exercise of the state's police power to regulate agriculture and promote economic development.
Case Law Context Relevant to Promotion Commissions
There are no specific North Dakota Supreme Court cases addressing the Dairy Promotion Commission’s rules directly, but broader case law on agricultural promotion and commodity checkoff programs provides useful context.
Key Legal Principles from Related Case Law
1. Constitutionality of Mandatory Assessments (Checkoffs)
Commodity checkoff programs like the dairy assessment have been upheld as constitutional exercises of state power, as long as the funds are used for generic promotion and research, not for political purposes.
Principle: The U.S. Supreme Court has held that checkoff programs do not violate free speech rights when funds are used for generic commodity promotion (e.g., Johanns v. Livestock Marketing Ass’n, 544 U.S. 550 (2005)).
2. Administrative Authority and Rulemaking
Courts defer to administrative agencies like the Dairy Promotion Commission when rules are within the scope of delegated authority.
Challenges to assessment procedures or enforcement must show that the Commission exceeded its statutory authority or violated procedural due process.
3. Enforcement of Assessment Collections
Courts generally uphold efforts by state commissions to collect assessments as part of the regulatory framework.
Producers must comply with reporting and payment requirements, or face penalties or collection actions.
Practical Impact of Title 19
Dairy producers in North Dakota contribute financially to collective marketing efforts designed to increase demand for dairy products locally and nationally.
The Commission serves as a unifying body for dairy industry promotion, research, and education.
Title 19 provides a clear framework for assessment collection, transparency, and accountability.
Compliance ensures continued funding for programs beneficial to all producers.
Summary Table
| Aspect | Description |
|---|---|
| Commission Authority | Appointed members oversee dairy promotion and assessments |
| Assessments | Mandatory fees per hundredweight of milk produced |
| Use of Funds | Marketing, research, education, administration |
| Reporting | Producers report production; records subject to audit |
| Enforcement | Penalties for non-payment; legal remedies for collection |
| Legal Context | Upheld constitutionally as a state agricultural promotion program |
Conclusion
NDAC Title 19 provides the regulatory foundation for the North Dakota Dairy Promotion Commission to support and promote the dairy industry via an assessment-funded program. While direct case law on Title 19 is limited, the Commission’s authority fits within well-established legal principles supporting state-administered agricultural promotion programs.
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