# Title 4.1 — Agriculture

## Chapter 4.1-26 — Milk Marketing Board

### § 4.1-26-01. Definitions.

Unless the context otherwise requires, the definitions in this section apply to this chapter.
1. "Bulk milk" means milk that is purchased by a processor from a person other than a
dairy farmer and which is purchased in a container other than the one in which the milk
will be resold to a retailer or to a consumer.
2. "Dairy farmer" means any person who produces grade A raw milk for sale to a
processor.
3. "Dairy farmer-processor" means a person who is both a dairy farmer and a processor
and who does not purchase raw milk from other dairy farmers, provided:
a. A dairy farmer-processor is a dairy farmer with respect to the sale of raw milk
produced by that person to a processor; and
b. A dairy farmer-processor is a processor with respect to any processing,
manufacturing, or sale of milk products or frozen dairy products or with respect to
the receipt of bulk milk from a source other than that person's own production.
4. "Dealer" means any processor or distributor.
5. "Distributor" means a person, other than a processor, that sells to consumers on one
or more home delivery routes, that sells to retailers, or that sells to both.
6. "Distributor price" means the price at which any milk product or frozen dairy product,
not intended for resale at a fixed location owned by a distributor, is purchased by a
distributor.
7. "Frozen dairy product" means:
a. Ice cream;
b. Ice milk;
c. Frozen custard;
d. Fruit sherbet;
e. The mix from which any such product listed in subdivisions a through d is made;
and
f. Any frozen product that contains milk solids not fat, or butterfat, and which is
commonly referred to in the dairy industry as a novelty.
8. "Marketing area" means a geographical portion of this state, within which minimum or
maximum prices established by the board must be uniform.
9. "Milk" means the lacteal secretion, practically free of colostrum, obtained by the
complete milking of a healthy hooved mammal, including any member of the order
Cetartiodactyla and including a member of the family:
a. Bovidae, including cattle, water buffalo, sheep, goats, and yaks;
b. Cervidae, including deer, reindeer, and moose;
c. Equidae, including horses and donkeys; and
d. Camelidae, including llamas, alpacas, and camels.
10. "Milk product" means:
a. (1) Buttermilk, including plain and creamed;
(2) Concentrated milk;
(3) Creamline milk;
(4) Flavored milk;
(5) Flavored skim milk;
(6) Fortified milk;
(7) Homogenized milk;
(8) Low fat milk;
(9) Raw milk;
(10) Regular milk;
(11) Skim milk;
(12) Special milk;
(13) Standardized milk; and
(14) Whole pasteurized milk;

b. (1) Cottage cheese; and
(2) Creamed cottage cheese;
c. Eggnog;
d. (1) Fluid cream;
(2) Half and half;
(3) Sour cream;
(4) Whipped cream; and
(5) Whipping cream; and
e. Yogurt.
11. a. "Processor" means a person who:
(1) Processes or manufactures milk products or frozen dairy products;
(2) Purchases raw milk from a grade A dairy farmer for resale to a person who
processes or manufactures milk products or frozen dairy products; or
(3) Purchases bulk milk from anyone for resale to a person who processes or
manufactures milk products or frozen dairy products.
b. The term "processor" does not include a person who purchases ice cream mix,
ice milk mix, or other frozen dairy products, provided:
(1) The person's processing activities are limited to converting the mix into a
frozen dairy product; and
(2) More than half the sales of which are then made by the person to
consumers at retail on the premises where the processing activities take
place.
12. "Retail price" means the price at which any milk product or frozen dairy product is
purchased by any person who makes such purchase for purposes other than resale.
13. "Retailer" means any person who is engaged in transferring title to milk products or
frozen dairy products to consumers at one or more retail establishments located in this
state.
14. "Stabilization plan" means a plan that contains minimum prices, maximum prices, or
both, and enforcement mechanisms.
15. "Wholesale price" means the price at which any milk product or frozen dairy product is
purchased by a retailer.
### § 4.1-26-02. Milk marketing board - Membership.

1. The milk marketing board consists of:
a. A dairy farmer appointed by the governor from a list of two names submitted by
the milk producers association of North Dakota;
b. A processor appointed by the governor from a list of two names submitted by the
North Dakota dairy industries association;
c. A retailer appointed by the governor from a list of two names submitted by the
North Dakota grocers association; and
d. Two consumer representatives appointed by the governor, provided that neither
consumer representative may have a financial interest in a dairy farm nor in an
entity that processes, distributes, or sells milk products.
2. An individual is not qualified to serve on the board if the individual held any other
public office, in an elected or an appointed capacity, during the two-year period
preceding appointment to the board.
3. A member of the board may not hold any other public office, in an elected or an
appointed capacity, during the member's term of office.
4. In considering individuals for appointment to the board, the governor shall ensure that
a geographic balance is maintained.
### § 4.1-26-03. Terms of office.

1. The term of office for each member is five years and begins on July first.
2. Terms of office must be staggered so that no more than one term expires each year.

3. If at any time during a member's term the member ceases to possess any of the
qualifications required by this chapter, the member's office is deemed vacant and the
governor shall appoint another individual for the remainder of the term.
### § 4.1-26-04. Compensation.

Each member of the board is entitled to receive compensation in the amount established by
the board, but not exceeding one hundred thirty-five dollars per day, plus reimbursement for
expenses as provided by law for state officers, if the member is attending meetings or
performing duties directed by the board.
### § 4.1-26-05. Chairman - Meetings.

1. Annually, the board shall elect one member to serve as the chairman.
2. The chairman shall call all meetings of the board and shall call a special meeting of the
board within seven days when petitioned to do so by three board members.
### § 4.1-26-06. Board powers.

The board may:
1. Do all things necessary and proper to enforce and administer this chapter;
2. Employ and compensate necessary personnel;
3. Employ an attorney licensed in this state;
4. Serve as a mediator or an arbitrator in any dispute among or between dairy farmers,
processors, distributors, retailers, or consumers, provided:
a. All parties to the dispute request the board to provide such services; and
b. The dispute pertains to the production, transportation, processing, storage,
distribution, or sale of milk products or frozen dairy products; and
5. Contract with any person for any purpose related to this chapter.
### § 4.1-26-07. Director.

The board shall employ and compensate a director and annually review the appointment of
the director. The director serves at the pleasure of the board.
### § 4.1-26-08. Authority of governmental entities.

1. This chapter does not limit, decrease, or amend the authority of the agriculture
commissioner, any public board of health, or any public health official, with respect to
matters of health and sanitation.
2. This chapter does not authorize the milk marketing board to regulate the sale of raw
milk that is not grade A.
### § 4.1-26-09. Milk marketing areas - Boundaries.

1. The milk marketing board shall divide the state into milk marketing areas.
2. All real property in the state must belong to a milk marketing area.
3. The board may increase the number of marketing areas in the state, decrease the
number of marketing areas in the state, or alter the boundaries of marketing areas,
provided the board holds a hearing in accordance with chapter 28-32 and considers:
a. Testimony and documentary evidence regarding the production, distribution, and
sale of milk products and frozen dairy products in the areas;
b. The regulation of prices paid by processors for raw milk in accordance with
federal milk marketing orders; and
c. Any other factors affecting implementation of this chapter.
### § 4.1-26-10. Milk stabilization plans - Required provisions.

The milk marketing board shall establish a milk stabilization plan for each milk marketing
area.

1. a. Each milk stabilization plan must include the minimum price that processors
located within the particular milk marketing area must pay to dairy farmers for raw
milk.
b. In establishing the minimum price, as required by this subsection, the board shall
consider various factors pertinent to the milk marketing area, including:
(1) Supplies of raw milk;
(2) Reserve supplies of raw milk;
(3) Production and retail sales data;
(4) Feed prices; and
(5) Wage rates.
2. a. Each milk stabilization plan must include the minimum price that a processor
must charge a retailer for milk products, provided the minimum price for each
item is applicable, regardless of the location at which the retailer accepts delivery.
b. Each milk stabilization plan must include the minimum price that a distributor
must charge a retailer for milk products, provided the minimum price for each
item is applicable, regardless of the location at which the retailer accepts delivery.
c. Each milk stabilization plan must include the minimum price that any person must
charge a consumer for milk products.
d. In establishing the minimum price, as required by this subsection, the board shall
consider various factors pertinent to the milk marketing area, including:
(1) Raw milk prices;
(2) Processing and distribution costs;
(3) Returns upon investment; and
(4) Retail sales volumes.
### § 4.1-26-11. Milk stabilization plans - Optional provisions.

1. a. A milk stabilization plan established in accordance with section 4.1-26-10 may
include the minimum price that must be charged for milk products and frozen
dairy products by any person other than those referenced in subsection 2 of
section 4.1-26-10.
b. (1) Nothing in this subsection requires the establishment of minimum prices for
all items in a category.
(2) Nothing in this subsection requires the establishment of both minimum
wholesale and retail prices for a particular item.
2. A milk stabilization plan established in accordance with section 4.1-26-10 may provide
for a classified pricing system predicated upon utilization and may provide for a
marketwide pooling arrangement or a handler pooling arrangement, as defined in the
Agricultural Marketing Agreement Act of 1937 [7 U.S.C. 601 et seq.], as amended.
3. If some portion of a milk marketing area falls under the jurisdiction of a federal milk
marketing order, a milk stabilization plan established in accordance with section
the milk stabilization plan and the federal milk marketing order:
a. Pay minimum raw milk class prices that exceed the minimum raw milk class
prices established by the federal milk marketing order; and
b. Pay the difference between the federal and state minimums directly to dairy
farmers, on a handler pool basis.
4. A milk stabilization plan established in accordance with section 4.1-26-10 may contain
a formula that automatically changes the minimum price payable to dairy farmers,
provided the formula is based on changes in the factors set forth in subdivision b of
subsection 1 of section 4.1-26-10.
5. A milk stabilization plan established in accordance with section 4.1-26-10 may:
a. Establish the prices payable by a processor for raw milk purchased from sources
other than dairy farmers; and
b. Contain provisions necessary to ensure that the prices paid for butterfat and milk
solids not fat, whether in the form of raw milk or otherwise, are uniform for all
processors whose raw milk purchases are regulated under the plan.

6. If a milk stabilization plan established in accordance with section 4.1-26-10 contains a
marketwide pooling arrangement, the plan may require that raw milk produced by dairy
farmer-processors be included in the pooling arrangement.
7. A milk stabilization plan established in accordance with section 4.1-26-10 may provide
for price adjustments based upon:
a. The butterfat content of the raw milk;
b. The location at which the raw milk is received;
c. The location of a plant receiving raw milk that the processor purchased and
thereafter transferred or diverted from the plant at which such raw milk is normally
utilized; and
d. Any other factors for which price adjustments are permitted in the Agricultural
Marketing Agreement Act of 1937 [7 U.S.C. 601 et seq.], as amended.
### § 4.1-26-12. Milk stabilization plans - Optional provisions - Maximum prices.

1. A milk stabilization plan established in accordance with section 4.1-26-10 may include
maximum prices for sales of milk products by a:
a. Processor;
b. Distributor; or
c. Retailer.
2. In establishing the maximum prices as permitted by this section, the board must
consider various factors pertinent to the milk marketing area, including:
a. Supplies of raw milk;
b. Reserve supplies of raw milk;
c. Production and retail sales data;
d. Feed prices; and
e. Wage rates.
### § 4.1-26-13. Milk stabilization plans - Optional provisions - Quantity discounts to

retailers.
A milk stabilization plan established in accordance with section 4.1-26-10 may permit
processors and distributors to provide quantity discounts to retailers, in connection with the
sales of milk products and frozen dairy products.
1. If quantity discounts are permitted, the milk stabilization plan must include for each
retailer:
a. A quantity discount rate for purchases of milk products that is based upon the
retailer's total purchases of milk products from all suppliers, during an established
base period of one, three, six, or twelve months; and
b. A quantity discount rate for purchases of frozen dairy products that is based upon
the retailer's total purchases of frozen dairy products from all suppliers, during an
established base period of one, three, six, or twelve months.
2. Any processor or distributor delivering milk products or frozen dairy products to an
eligible retailer may provide the quantity discounts regardless of the product quantities
actually purchased by the eligible retailer from a processor or distributor.
3. If a retailer operates two or more separate places of business, the quantity discount
rate must be applied to each place of business and based upon the quantity of milk
products or frozen dairy products that the retailer purchased for resale at each place of
business.
### § 4.1-26-14. Milk stabilization plans - Optional provisions - Frozen dairy products -

Wholesale price - Filing.
1. A milk stabilization plan established in accordance with this chapter may require that
processors and distributors file with the board the uniform wholesale price at which a
frozen dairy product will be sold within the marketing area.
2. If price filings are required, as permitted by this section, the board:

a. (1) Shall prescribe the time at which and the manner in which the initial price
filings must be submitted; and
(2) Shall permit a processor or distributor desiring to meet the lower prices of a
competitor to do so in such portions of the marketing area as specified in the
amended price filing;
b. May not prohibit a processor or distributor from meeting lawful competition
without delay in connection with the sale of a frozen dairy product; and
c. May establish other requirements as necessary to implement this section.
### § 4.1-26-15. Cost variances - Recognition.

1. Minimum and maximum prices established in accordance with this chapter for
products other than raw milk may reflect packaging cost differences.
2. Minimum and maximum prices established in accordance with this chapter for home-
delivered products may vary from the prices established for products sold to
consumers by retailers.
### § 4.1-26-16. Minimum prices payable to dairy farmers - Effect of change.

Whenever a milk stabilization plan is changed with respect to the minimum price that
processors located within a particular milk marketing area must pay to dairy farmers for raw
milk, the milk marketing board shall ensure that simultaneous changes occur in all other
minimum and maximum prices established in accordance with this chapter.
### § 4.1-26-17. Licenses.

1. a. A person must be licensed by the milk marketing board as a dairy farmer if the
person sells grade A raw milk that the person has produced to a processor that:
(1) Must be licensed in accordance with this chapter; and
(2) Processes the milk at a plant located in this state.
b. This subsection is applicable regardless of whether the person's dairy farm is
located within or outside of this state.
2. A person must be licensed as a processor by the milk marketing board if the person:
a. Operates a processing plant located in this state;
b. Sells milk products or frozen dairy products to a retailer for resale at a retail
establishment in this state, regardless of whether:
(1) The processor's plant is located in this state or outside of this state; or
(2) The retailer takes title to or possession of the products in this state or
outside of this state; or
c. Sells milk products or frozen dairy products to a distributor for resale to:
(1) North Dakota consumers on home delivery; or
(2) A retailer.
3. A person must be licensed as a distributor by the milk marketing board if the person
sells milk products or frozen dairy products to:
a. North Dakota consumers on one or more home delivery routes; or
b. A retailer.
4. a. A person must be licensed as a retailer by the milk marketing board if the person:
(1) Purchases milk products or frozen dairy products for purposes of resale to
consumers; or
(2) Sells milk products or frozen dairy products to consumers.
b. (1) A person licensed as a dairy farmer, a processor, or a distributor shall also
be licensed as a retailer, if the person sells milk products or frozen dairy
products to consumers at a fixed place of business located in this state.
(2) Each fixed placed of business referenced in this subdivision requires
separate licensure.
5. In order to effectuate the purchase of milk products and frozen dairy products at
wholesale prices, the following entities may be licensed as retailers:
a. School districts;

b. Nonpublic schools;
c. Hospitals;
d. State institutions; and
e. Not-for-profit entities.
6. This section requires separate licensure for each place of business.
### § 4.1-26-18. Vending machine suppliers - Authorization to license.

The milk marketing board, by rule, may provide for the licensing of persons engaged in
supplying milk products or frozen dairy products to consumers through the use of vending
machines.
### § 4.1-26-19. License - Application.

To obtain a license required by this chapter, a person must complete an application form
and submit it to the milk marketing board.
### § 4.1-26-20. Licenses - Additional requirements.

1. Before a processor may be licensed by the milk marketing board, as required by this
chapter, the processor shall obtain a license from the agriculture commissioner, in
accordance with chapter 4.1-25.
2. Before a distributor may be licensed by the board, as required by this chapter, the
distributor shall obtain a license from the agriculture commissioner, in accordance with
chapter 4.1-25.
3. Before a dairy farmer may be licensed by the board, as required by this chapter, the
dairy farmer shall provide proof of inspection by the agriculture commissioner or the
department of health and human services, as provided for in accordance with section
23-01-16.
4. A person who is a dairy farmer-processor shall obtain both a dairy farmer's license and
a processor's license.
### § 4.1-26-21. License application - Hearing.

1. Within thirty days after receiving an application for a license under this chapter, the
milk marketing board shall:
a. Issue the license; or
b. Notify the applicant of the date on which a hearing will be held to receive
evidence relative to the application.
2. A hearing under this section may not be held less than twenty days after the date on
which notice is given, unless the board and the applicant agree to an earlier date.
3. Within thirty days after the hearing is closed, or as soon thereafter as practicable, the
board shall notify the applicant of its decision in the matter.
### § 4.1-26-22. Refusal to license.

The milk marketing board may refuse to license any person, except a dairy farmer.
### § 4.1-26-23. Processor's license - Distributor's license - Grounds for denial.

The milk marketing board may deny an application for a processor's license or a distributor's
license if the board determines that:
1. Persons currently licensed by the board in that capacity are supplying an adequate
variety and quantity of high-quality milk products and frozen dairy products to retailers
and consumers in this state;
2. Deliveries are being made with sufficient regularity and frequency; and
3. The issuance of additional licenses of the type sought will:
a. Result in an excess of processing plant capacity;
b. Tend to increase to unsatisfactory levels the average unit processing or average
unit distribution costs for persons already licensed by the board; or
c. Otherwise tend to prevent achievement of the objectives of this chapter.

### § 4.1-26-24. License application - Required declaration.

1. As a condition of licensure, an applicant for a processor's license shall declare in the
application that the applicant:
a. Will not sell milk products or frozen dairy products to any person who is not
properly licensed in accordance with this chapter;
b. Will sell such milk products or frozen dairy products as are customarily handled
by a processor to any retailer who:
(1) Desires to purchase such products from the processor; and
(2) Has a place of business in any community in which the processor
processes, distributes, or sells milk products or frozen dairy products; and
c. Will offer to any retailer the same frequency of delivery and the same in-store
services as are customary in the community.
2. As a condition of licensure, an applicant for a distributor's license shall declare in the
application that the applicant:
a. Will not sell milk products or frozen dairy products to any person who is not
licensed in accordance with this chapter;
b. Will not purchase milk products or frozen dairy products from any person who is
not licensed in accordance with this chapter;
c. Will sell such milk products or frozen dairy products as are customarily handled
by a distributor to any retailer who:
(1) Desires to purchase such products from the distributor; and
(2) Has a place of business in any community in which the distributor distributes
or sells milk products or frozen dairy products; and
d. Will offer to any retailer the same frequency of delivery and the same in-store
services as are customary in the community.
3. As a condition of licensure, an applicant for a retailer's license shall declare in the
application that the applicant will not purchase milk products or frozen dairy products
from any person who is not licensed in accordance with this chapter.
4. For purposes of this section, "community" means a city, together with any commonly
recognized residential or business area adjacent to the city.
### § 4.1-26-25. License - Expiration.

A license issued under this chapter is effective until:
1. There is a change of ownership or of location;
2. The license is suspended or revoked; or
3. The business that is licensed is discontinued or is inactive for more than thirty days.
### § 4.1-26-26. License - Fees prohibited.

The milk marketing board may not charge a fee for the issuance or maintenance of any
license required by this chapter.
### § 4.1-26-27. Assessments - Continuing appropriation.

1. a. Each licensed processor shall pay to the milk marketing board an amount
determined by the board but not exceeding eighteen cents per hundredweight
[45.36 kilograms], on all milk and milk equivalents used by the processor in
manufacturing milk products and frozen dairy products.
b. The assessment required in accordance with this section is not imposed on milk
products or frozen dairy products sold outside this state.
2. The assessment required by this section must be calculated quarterly and paid within
fourteen days after the end of each calendar quarter.
3. The board shall forward all moneys received under this chapter to the state treasurer
for deposit in the milk marketing fund. All moneys in the milk marketing fund are
appropriated on a continuing basis to the board to carry out this chapter.

### § 4.1-26-28. Records - Retention.

1. The milk marketing board shall specify by rule all records that each licensee must
maintain.
2. Each licensee shall retain the records required in accordance with this section for a
period of three years.
### § 4.1-26-29. Records - Confidential - Penalty.

1. Any information created, collected, or maintained by the milk marketing board under
this chapter is confidential and not subject to the open records requirements of section
44-04-18, except that the board may:
a. Utilize the information in the administration of this chapter;
b. Provide testimony regarding the information in a judicial proceeding or an
administrative proceeding conducted in accordance with chapter 28-32;
c. Provide the information to the agriculture commissioner for the purpose of
determining a licensee's financial condition, as required by chapter 4.1-25; and
d. Utilize the information in compiling and disseminating general statistical data.
2. Any person divulging confidential information in violation of this section is guilty of a
class A misdemeanor.
### § 4.1-26-30. Prohibitions.

1. A licensee may not buy or sell any milk product or any frozen dairy product at a price
that is less than the minimum price nor more than the maximum price set forth in the
applicable milk stabilization plan.
2. If price filings are required, as permitted by section 4.1-26-14:
a. A dealer may not sell a frozen dairy product at a price that varies from the filed
price in effect on the date of the sale; and
b. A retailer may not purchase a frozen dairy product at a price that varies from the
filed price in effect on the date of the sale.
3. A licensee may not engage in any act or omission that is contrary to a declaration
made in the person's application for a license, as submitted to the milk marketing
board.
4. a. A licensee may not use or attempt to use any method, device, or transaction that:
(1) Is intended to accomplish or has the effect of accomplishing, the sale or
attempted sale of milk products or frozen dairy products at less than the
minimum prices set forth in the applicable milk stabilization plan;
(2) Is intended to accomplish or has the effect of accomplishing the purchase or
attempted purchase of milk products or frozen dairy products at less than
the minimum prices set forth in the applicable milk stabilization plan;
(3) Is designed to circumvent any price requirements provided for in this
chapter; or
(4) Has the effect of substantially undermining the effectiveness of any price
requirements provided for in this chapter.
b. The provisions of subdivision a are applicable regardless of whether the method,
device, or transaction:
(1) Is applied directly to the milk product or frozen dairy product sold or
purchased; or
(2) Is used in connection with the sale or handling of any other product,
commodity, article, or service.
5. a. A distributor may not purchase milk products or frozen dairy products at prices
that are less than minimum wholesale prices if the products are resold to
consumers at a fixed place of business owned by the distributor.
b. This subdivision does not prohibit a distributor from purchasing at wholesale
prices those milk products or frozen dairy products that are to be resold at a fixed
place of business owned by the distributor, provided the distributor purchases at
distributor prices all other milk products and frozen dairy products that are to be
resold by the distributor.

6. A retailer may not sell or offer to sell milk products or frozen dairy products of a
particular brand at a price that is different from that charged by the retailer for the
same quantity, type, quality, or grade of a different brand, unless the price differential
equals the difference in the price paid by the retailer for the referenced products.
### § 4.1-26-31. Disruptive trade practices.

1. A person may not provide discounts, rebates, or allowances in connection with the
sale of milk products or frozen dairy products, unless the discounts, rebates, or
allowances are permitted in accordance with section 4.1-26-13.
2. A dealer may not provide free equipment or services to a retailer. This subsection does
not prohibit a dealer from:
a. Stocking the dairy case or frozen products cabinet of a retailer; or
b. Stamping on each milk product or frozen dairy product the retail price at which
the retailer desires to sell the product.
3. A person may not provide advertising or display allowances.
4. a. A person may not give a free milk product or a free frozen dairy product to a
customer.
b. This subsection does not prohibit a person from:
(1) Providing tasting samples to an individual; or
(2) Donating products for charitable purposes.
5. A dealer may not make loans to a retailer, renew loans to a retailer, or provide financial
assistance in any other form to a retailer.
6. A dealer may not furnish signs to a retailer.
7. A person may not sell, offer to sell, or advertise any milk product or frozen dairy
product in combination with any other product or service.
8. A person may not sell, offer to sell, or advertise any product or service at a price that is
available only to purchasers of a milk product or a frozen dairy product.
9. A dealer may not provide a gift to a retailer.
10. a. A dealer may not lease, lend, or rent equipment to a retailer.
b. If a dealer sells equipment to a retailer, the board shall prescribe the minimum
markup, based upon the seller's invoice cost or the depreciated value in the case
of used equipment.
11. a. (1) Except as otherwise provided in this subdivision, a person may not require a
deposit if milk products or frozen dairy products are purchased in returnable
containers.
(2) A person may require a deposit on a milk case, provided the deposit does
not exceed the replacement value of the milk case.
b. A person may not provide an allowance or a credit in connection with the return of
a container.
12. a. Except as otherwise provided, a dealer may not provide payment to a franchisor,
a wholesale grocer, or any other person closely connected with a retailer for
central billing, customer solicitation, or other services, if the purpose or effect of
the payment is to induce the recipient to influence or attempt to influence a
retailer's decision regarding:
(1) The brand of milk products or frozen dairy products to be purchased and
resold by the retailer; or
(2) The amount of space to be allocated to any brand of milk products or frozen
dairy products.
b. If a wholesale grocer establishes a central billing service to guarantee the
collection of dealer accounts:
(1) All dealers that supply member or corporate stores must be afforded the
same service; and
(2) The central billing service fee may not exceed two percent of the invoice
cost.

### § 4.1-26-32. Inspections and investigations.

1. A representative of the milk marketing board may enter upon real property and access
any structure and personal property, at any time, for the purpose of:
a. Inspecting or pursuing an investigation pertaining to the production, storage,
processing, manufacturing, or sale of raw milk, milk products, or frozen dairy
products; or
b. Inspecting records to determine statutory and regulatory compliance.
2. The milk marketing board may subpoena records, copy records, and audit records of
any person doing business with an individual licensed under this chapter.
### § 4.1-26-33. License - Suspension and revocation.

1. The board may suspend or revoke a license granted to any person under this chapter
if the person violates:
a. This chapter;
b. A milk stabilization plan issued in accordance with this chapter; or
c. Any rule that implements this chapter.
2. The provisions of this subsection do not apply to a dairy farmer.
### § 4.1-26-34. Violation of chapter - Civil penalty.

A person violating this chapter, a milk stabilization plan issued in accordance with this
chapter, or any rule that implements this chapter, is subject to a civil penalty in an amount not
exceeding five hundred dollars per day for each violation. The civil penalty may be adjudicated
by a court or by the milk marketing board through an administrative hearing.
### § 4.1-26-35. Administrative and regulatory functions.

All administrative and regulatory functions of the board must be exercised in accordance
with chapter 28-32.
### § 4.1-26-36. Legal actions.

All legal actions may be brought by or against the board in the name of the North Dakota
milk marketing board.
