4 A.2d 107 | Vt. | 1939
The information charges that the respondent "did * * * * sell and deliver milk which he then and there produced when he * * * * was not licensed as required by Section 7, of No.
The grounds of the demurrer are (1) that the act is in conflict with sections
No.
Section 2 contains definitions of various terms employed in the act, among them the following: "`Market' means any city, town or village, or two or more of the same, designated by the board as a natural marketing area"; "`Distributor' means any person who produces and sells * * * * milk daily within the state for consumption, disposition or use within the state * * * *."
Section 3 creates a milk control board of three members, and provides for their compensation.
Section 4 provides that it shall be the duty of the board to be informed at all times as to the supply, production and quality of milk in the State, "that the public may be assured of an adequate daily production in the state of a proper quantity and quality"; and to be informed at all times as to the transportation, processing, storage and distribution of milk sold, consumed or used in the State. "To the end that no part of the state shall lose or have impaired its reasonable requirements of milk of a proper quality, the board shall have power to supervise, regulate and control the distribution and sale of milk within the state. To the end that the public shall be safeguarded from the harm and economic loss it would sustain if the production of milk were substantially curtailed, the board shall procure the cooperation of those engaged in the industry to maintain fair and lawful practices. The authority herein conferred shall supplement and be in addition to but not in lieu of existing laws relating to transportation of milk, its inspection and testing, the powers of the state board of health and local health ordinances and regulations as now provided by law." *155
Section 5 is as follows: "Whenever the board shall determine, either upon complaint or upon its own initiative, after public notice and hearing, that the public health is menaced, jeopardized, or likely to be impaired or deteriorated by the loss or substantial lessening of the supply of milk of proper quality in a specified market, the board shall fix the just reasonable minimum or maximum price, or both, that shall be paid producers or associations of producers by distributors, and the manner of payment, and the prices charged consumers and others for milk by distributors, so long as such condition is found to prevail in such market. In fixing such prices, the board shall investigate and ascertain what are reasonable costs and charges for producing, hauling, handling, processing and any other services performed in respect to milk, and determine what prices for milk in the several localities and markets in the state, and under varying conditions, will best protect the milk industry in the state and insure a sufficient quantity of pure and wholesome milk to adults and minors in the state, and will best promote the public interest. The board shall take into consideration the balance between production and consumption of milk, the costs of production and distribution, and the purchasing power of the public, and the amount necessary to yield a reasonable return to the producer and to the milk dealer. Prices so fixed need not be uniform in all markets and may be changed from time to time after such notice and public hearing as deemed by the board in the public interest. Nothing herein shall be construed to prohibit a producers cooperative, organized under the Public Laws, from blending the proceeds from the sale of its milk in all markets and all classifications, and distributing such to its members in accordance with the contract with its members, or from making deductions from sums due members in such sums as may be authorized by the membership to be so deducted. Purchases by or sales to authorized officials of any town or city charity or public welfare department or by charitable organizations approved by such city or town officials for charitable uses shall be exempt from the price fixing provisions of this act."
Section 6 gives the board authority to accept established classes and grades of milk, or to establish such classes and grades, and to specify to what classes or grades the prices fixed pursuant to section 5 shall apply. *156
Section 7 provides that "All distributors in any market designated by said board shall be licensed by said board," prescribes the fee to be paid, and gives the board authority, after hearing and notice, to suspend or revoke a license for certain specified reasons.
Section 8 requires all distributors in any market specified by the board as one in which it is in the public interest to regulate the supply, production and quality of milk to keep such records and make such reports as the board may reasonably require, and gives any member of the board or its representative the right to enter and examine all places where milk is produced, handled, distributed or sold, and examine all books and records.
Section 9 gives the board the power to make orders, hold hearings, subpoena and examine under oath producers and distributors, their books, records, etc., and "any other person deemed necessary to carry out the purposes and intent of this act"; and authorizes the board to adopt, promulgate and enforce reasonable rules and regulations.
By Section 10, the money received from fees and penalties (the latter being the subject of Section 11) is established as a special fund to be paid out by the state treasurer upon warrant of the auditor of accounts for such purposes of the act as may be approved by the chairman of the board.
Certain other sections govern the procedure before the board and an appeal to the Supreme Court and the procedure therein.
The established rule is that every presumption is to be made in favor of the constitutionality of an act of the Legislature and it will not be declared unconstitutional without clear and irrefragable proof that it infringes the paramount law. Villageof Waterbury v. Melendy,
The claim that the act is in contravention of the 14th Amendment to the federal Constitution and sections 7 and 9 of
*157
chapter
In Nebbia v. People of the State of New York,
The purpose of the statute before us, as declared in the first section, is, as we have seen, to protect and promote the public welfare by insuring at all times an adequate supply of clean and pure milk for the needs of the inhabitants of the State, so that the public health shall not be endangered. The legislative finding, as expressed in the same section, that certain unfair, unjust, destructive and demoralizing trade practices carried on by producers and distributors of milk and cream are likely to result in the undermining of health regulations and standards, the dairy industry and the constant supply of these commodities, thus endangering the public health, welfare and comfort, is conclusive upon us in disposing of this cause upon the demurrer, since there is nothing on the face of the statute, or from facts of which we must take judicial notice, to indicate that it is an infringement of constitutional rights. State v. Haskell,
Therefore the price fixing provisions are valid, unless, as stated in the Nebbia case, they are arbitrary or discriminatory, or demonstrably irrelevant to the policy of the Legislature. The statute itself negatives any idea of arbitrary action by the board in this regard, for in sec. 5 the elements of costs of production, transportation, processing, distribution and other services, the balance between production and consumption and the purchasing power of the public, which the board is required to take into consideration in fixing just and reasonable prices, are carefully enumerated. From the provisions of secs. 5 and 9, relating to a public hearing and the issuance of subpoenas, and the examination of witnesses upon oath, it is apparent that the board acts in a quasi judicial capacity when discharging this part of its duty. The provisions are clearly relevant to the declared purpose and policy of the act.
Neither does the provision that costs need not be uniform in all markets render the act discriminatory, for it is possible that costs, balances and purchasing power may vary to such an extent in different localities that what may be a just and reasonable price in one market may not be so in another, and thus the act, instead of causing discrimination, has in reality the opposite effect. As we have seen the act provides the standards by which the prices are to be determined. See State v. NewarkMilk Co.,
The respondent stresses the provisions relating to producers' cooperatives and charitable organizations, and argues that these are discriminatory. Although the point is inadequately briefed, for all that is said concerning it is little more than a reiteration of the grounds stated in the demurrer, we have examined it and find it to be unavailing. The equal protection clause of the Fourteenth Amendment does not prohibit legislative classification and the imposition of statutory restraints on one class which are not imposed on another. Metropolitan CasualtyIns. Co. v. Brownell,
What has been said applies also to the claim that the statute is repugnant to Ch.
Tested by the foregoing principles, we cannot assume that the classification made in the act in question is irrational and beyond the discretionary power of the Legislature. There is nothing in the wording of the statute, or in matter of common knowledge, or matters of which judicial notice may be taken that shows the existence of an arbitrary discrimination. See Borden'sFarm Products Co. v. Baldwin,
The ground of demurrer by which it is asserted that the act is invalid as an unconstitutional delegation of legislative power presents the next question. The argument is in effect that the board of milk control are given authority to designate markets, without defining or establishing the criteria by which the determination of "natural marketing areas" may be reached, thus leaving the decision to the unguided and uncontrolled discretion of the board. Since, by section 7 of the act, the requirement of a license applies only to distributors who carry on their business within a market designated by the board, it is obvious that, if the board has no constitutional power to designate such market, the respondent cannot be convicted of the offense charged against him, and his demurrer on this ground must be sustained.
It is a fundamental principle of the American Constitutional system, clearly expressed in our own State Constitution, (Ch. 2, sec. 5) that the legislative, executive and judicial departments of government are separate from each other, and therefore such functions of the Legislature as are purely and strictly legislative cannot be delegated, but must be exercised by it alone. Village of Waterbury v. Melendy,
Whether or not the standard as established is sufficiently definite to meet the constitutional requirement must depend in large measure upon the circumstances of each particular case.Village of Waterbury v. Melendy,
Milk control statutes each containing a provision giving a board or commission authority to designate a natural marketing area, or a "milk shed" have been enacted in other states, and their constitutionality has been passed upon by the courts in the respective jurisdictions. In some instances (see Ferretti v.Jackson,
We cannot agree that merely because a given industry is affected with a public interest a regulatory act is necessarily valid; nor can we assent to the proposition that the statement of the policy and purpose of an act is always sufficient to constitute a primary standard. But the limits of the delegated administrative authority may be found in the meaning of the terms used in making the delegation. See Vallat v. Radium Dial Co.,supra.
Nowhere in our statute is the board of milk control directly given authority to designate natural marketing areas, but implied authority to do this is found in section 2, defining "Market" as "any city, town or village, or two or more of the same, designated by the board as a natural marketing area"; in section 5, providing that when the board shall find that the public health is endangered or threatened in a specified market, it shall fix the just and reasonable minimum and maximum price for milk therein; and in section 7, providing that all distributors in any market designated by the board shall be licensed. There are, it is true, no specific directions for the guidance of the board in the ascertainment of a market, but it cannot be said that the phrase "natural marketing area" has no recognized meaning of which we may take judicial notice. "Market," in the sense in which the word is obviously used in the statute, signifies "the *166 region in which any commodity can be sold; the geographical or economic extent of commercial demand"; "marketing," "a bringing or sending to market"; "natural," "in accordance with or due to the conditions, events or circumstances of the case; in line with normal experience." See Webster's New Int. Dictionary. So a "natural marketing area," as the term is here employed, is a tract or region within which milk is ordinarily sold in response to commercial demand. Thus what the board is authorized to designate is adequately defined, and the existence of an arbitrary discretion in making such designation is negatived. The designation of a natural marketing area is a determination of fact, upon which the exercise of the board's authority depends. The standard by which the designation is to be made is implicit in the phrase itself.
We hold that the Milk Control Act is not in this respect an improper delegation of legislative power.
The pro forma ruling of the trial court was without error.
Judgment affirmed and cause remanded.