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     Alberta Regulation 142/2002

     Dairy Board Act

     MINIMUM MILK PRICE ORDER

     Filed:  July 4, 2002

Made by the Alberta Energy and Utilities Board (Order U2002-196) on June
26, 2002 pursuant to section 13 of the Dairy Board Act.


1   All Class 1 milk shall be purchased on a hectolitre basis and where
that milk has a butterfat content of 3.60 kilograms per hectolitre the
minimum price for that Class 1 milk shall be $70.67 per hectolitre.


2   The Minimum Milk Price Order (AR 52/2002) is repealed.


3   This Order comes into force on July 22, 2002.


     ------------------------------

     Alberta Regulation 143/2002

     Regional Health Authorities Act

     REGIONAL HEALTH AUTHORITIES (MINISTERIAL)
     AMENDMENT REGULATION

     Filed:  July 5, 2002

Made by the Minister of Health and Wellness (M.O. 32/2002) on June 25, 2002
pursuant to section 24 of the Regional Health Authorities Act.


1   The Regional Health Authorities (Ministerial) Regulation (AR 17/95) is
amended by this Regulation.


2   The following is added after section 2:

Additional information
     2.1   A regional health authority shall provide to the Minister
within 30 days after the quarters ending on June 30, September 30 and
December 31 a report in the form and manner required by the Minister
containing

               (a)  the financial performance information for that
quarter as specified by the Minister, and

               (b)  the forecasted revenue and expenditures for the
remainder of the fiscal year.


     Alberta Regulation 144/2002

     Marketing of Agricultural Products Act

     ALBERTA SOFT WHEAT PRODUCERS MARKETING
     AMENDMENT REGULATION

     Filed:  July 9, 2002

Made by the Alberta Soft Wheat Producers Commission on February 15, 2002
pursuant to section 26 of the Marketing of Agricultural Products Act.


1   The Alberta Soft Wheat Producers Marketing Regulation (AR 34/99) is
amended by this Regulation.


2   Section 2 is amended by striking out "$0.50" and substituting "$1".


3   This Regulation comes into force on August 1, 2002.


     ------------------------------

     Alberta Regulation 145/2002

     Safety Codes Act

     ELECTRICAL CODE REGULATION

     Filed:  July 11, 2002

Made by the Lieutenant Governor in Council (O.C. 329/2002) on July 10, 2002
pursuant to section 65 of the Safety Codes Act.


     Table of Contents

Interpretation 1
Electrical systems equipment  2
Codes declared in force  3
Repeal    4
Coming into force   5


Interpretation
1(1)  In this Regulation,

     (a)  "Act" means the Safety Codes Act;

     (b)  "certification body" means an organization accredited or
recognized by the Standards Council of Canada as a certification body.

(2)  The definitions in the Act and a Code declared in force by this
Regulation apply to the words used in this Regulation.


Electrical systems equipment
2(1)  No person shall manufacture, install, sell or offer for sale any
equipment related to electrical systems for use in Alberta unless the
equipment has been

     (a)  certified by a certification body, or

     (b)  inspected, tested and accepted by a certification body, and the
equipment bears evidence of having been accepted in a manner authorized by
the certification body.

(2)  Subsection (1) does not apply to electrical equipment used by 

     (a)  an electrical utility in the direct function of generating and
transmitting electric power to the point of connection to a consumer's
service, or

     (b)  a communication utility in the direct function of providing
communication services up to the point of connection to a consumer's
communication system.

(3)  If a code, standard or body of rules declared in force under the Act
with respect to electrical systems refers to approved equipment, that
equipment must meet the requirements of this section.


Codes declared in force
3(1)  The following codes are declared in force in respect of electrical
systems:

     (a)  the Canadian Electrical Code, Part I, Nineteenth Edition,
C22.1-02;

     (b)  the Code for Electrical Installations at Oil and Gas
Facilities, Second Edition, 2002, published by the Safety Codes Council;

     (c)  the Alberta Electrical and Communication Utility Code, Second
Edition, 2002, published by the Safety Codes Council.


Repeal
4   The Electrical Code Regulation (AR 208/99) is repealed.


Coming into force
5   This Regulation comes into force on September 1, 2002.


     Alberta Regulation 146/2002

     Government Organization Act

     HEALTH AND WELLNESS GRANTS REGULATION

     Filed:  July 11, 2002

Made by the Lieutenant Governor in Council (O.C. 335/2002) on July 10, 2002
pursuant to section 13 of the Government Organization Act.


     Table of Contents

Definition     1
Grants authorization     2
Application    3
Delegation     4
Agreement 5
Payment   6
Written reports and examination of records   7
Purpose of grant    8
Return of grant money    9
Repeal    10
Expiry    11


Definition
1   In this Regulation, "Minister" means the Minister of Health and
Wellness.


Grants authorization
2   The Minister may make grants to a person or organization for any
purpose related to any program, service or other matter under the
administration of the Minister.


Application
3   An application for a grant must be made in the manner and form
satisfactory to the Minister.


Delegation
4   The Minister is authorized to delegate in writing any function, duty or
power under this Regulation to any employee of the Government.


Agreement
5   The Minister is authorized to enter into agreements with respect to any
matter relating to the payment of a grant.


Payment
6   The Minister may provide for the payment of any grant in a lump sum or
by way of instalments and may determine the time or times at which the
grant is to be paid.


Written reports and examination of records
7(1)  The Minister may at any time require the recipient of a grant to
provide a written report, in a form satisfactory to the Minister, on the
work and activity in respect of which the grant was made, including any
information required by the Minister relating to the expenditure of the
grant.

(2)  The recipient of a grant must permit a representative of the Minister,
the Auditor General or both to examine the books or records pertaining to
the grant that the Minister or Auditor General considers necessary to
determine whether the grant has been properly expended.


Purpose of grant
8   The recipient of a grant may use the money only

     (a)  in accordance with the conditions, if any, on which the grant
is made, or

     (b)  if the original conditions on which the grant is made are
varied with the consent of the Minister, in accordance with the conditions
as varied.


Return of grant money
9(1)  If the recipient of a grant does not use all of the money, the
Minister may require the recipient to refund the surplus money to the
Minister of Finance.

(2)  The Minister may require the recipient of a grant to repay all or part
of the money to the Minister of Finance if the recipient does not comply
with any of the conditions of the grant or does not use the money as
required under this Regulation.


Repeal
10   The Health Grants Regulation (AR 269/89) is repealed.


Expiry
11   For the purpose of ensuring that this Regulation is reviewed for
ongoing relevancy and necessity, with the option that it may be repassed in
its present or an amended form following a review, this Regulation expires
on July 31, 2012.


     Alberta Regulation 147/2002

     Dairy Industry Act

     DAIRY INDUSTRY AMENDMENT REGULATION

     Filed:  July 11, 2002

Made by the Lieutenant Governor in Council (O.C. 337/2002) on July 10, 2002
pursuant to section 39 of the Dairy Industry Act.


1   The Dairy Industry Regulation (AR 139/99) is amended by this
Regulation.


2   Section 1(1) is amended

     (a)  by adding the following after clause (a):

               (a.1)     "approved method" means a standard method or a test
specified by the Director, if in the opinion of the Director that test
provides equivalent or greater food safety than that provided by a standard
method;

     (b)  by adding the following after clause (h):

               (h.1)     "inhibitor" means any antibiotic, drug residue or
other foreign chemical substance in a dairy product whose presence in the
dairy product is confirmed as a positive result using an approved method;

     (c)  by repealing clause (l) and substituting the following:

               (l)  "standard method" means the microbiological,
chemical, physical and compositional methods of analysis as approved by
Health Canada or those methods described in the most recent Standard
Methods for the Examination of Dairy Products published by the American
Public Health Association or the Official Methods of Analysis published by
the Association of Official Analytical Chemists, as amended or replaced
from time to time;


3   Section 2 is amended by adding the following after clause (b):

     (c)  producer of milk produced by a species other than Bos taurus;

     (d)  processor of milk produced by a species other than Bos taurus;

     (e)  a producer or processor of milk produced by the species Bos
taurus if the producer or processor is exempt from the Alberta Milk Plan
Regulation.


4   Section 4 is renumbered as section 4(1) and the following is added
after subsection (1):

     (2)  A licence issued under this Regulation may not apply to more
than one dairy farm or dairy plant.


5   Section 5 is amended by striking out "an earlier" and substituting "a
different".


6   Section 25 is amended

     (a)  in subsection (2)(a) by striking out "the Dairy Control Board
on the recommendation of";

     (b)  by adding the following after subsection (2):

     (3)  The Director may notify the producer using the bulk milk tank
and Alberta Milk of an approval under subsection (2)(a).


7   Section 40 is amended

     (a)  in subsection (2) 

               (i)  in clauses (a) and (b) by adding ", has been
ordered by an inspector under section 14 of the Act to cease supplying milk
or has been ordered by an inspector under section 18 of the Act to not sell
or supply a shipment of milk," after "11 of the Act";

               (ii) in clause (c) by striking out "Dairy Board" and
substituting "Alberta Milk or by the Director";

     (b)  in subsection (3)(e) by striking out "processor, the Director
and the Dairy Board" and substituting "Director".


8   Section 43 is amended by striking out "or down-graded".


9   Section 44(2) is amended by striking out "dairy plant" and substituting
"processor".


10   Section 46 is amended

     (a)  by repealing subsection (2) and substituting the following:

     (2)  An approved method carried out in a manner satisfactory to the
Director must be used to test milk and farm-separated cream to determine
compliance with this Regulation.

     (b)  in subsection (3)

               (i)  by repealing clause (a) and substituting the
following:

                         (a)  an analyst who tests a dairy product by
microbiological, chemical, physical or compositional analysis must

                                   (i)  conduct the test at an
approved laboratory in accordance with an approved method carried out in a
manner satisfactory to the Director, and

                                   (ii) report the results in
accordance with the method used to the persons required by this Regulation
or the Director,

                         and

               (ii) in clause (b) by striking out "the standard
methods" and substituting "an approved method".


11   The heading before section 47 is repealed.


12   Section 47(1) is amended by striking out "grade" and substituting
"food safety".


13   Sections 48 and 49 are repealed.


14   Section 50 is amended

     (a)  by repealing subsections (1) to (4);

     (b)  by repealing subsection (5) and substituting the following:

     (5)  If a sample of a producer's milk does not meet the requirements
of Schedule 2 with respect to inhibitors and drug residues,

               (a)  the producer shall not sell, supply or offer for
sale milk to be used or processed for human consumption, and

               (b)  a processor shall not accept milk from the producer

     until the milk meets the requirements of Schedule 2 with respect to
inhibitors and drug residues.

     (c)  in subsection (8) by striking out "tests" and substituting
"approved method".


15   Section 52 is repealed and the following is substituted:

Freezing point ramifications
     52   If a producer's milk is found to have a freezing point of
-0.514ΓΈ Hortvet or higher, the producer shall not sell, supply or offer for
sale, milk to be used or processed for human consumption until a subsequent
sample from the producer's bulk milk tank is tested and found to be in
compliance with Schedule 2 or the producer is authorized by an inspector to
sell, supply or offer for sale, milk.


16   Section 54 is repealed and the following is substituted:

Method to test dairy products
     54   An analyst in an approved laboratory must use an approved method
but, if the Director specifies that a particular approved method be used,
the analyst must use the specified approved method.


17   Section 55 is amended by striking out "Act, this Regulation and the
Dairy Board Act" and substituting "Act and this Regulation".


18   Schedule 2 is amended in the 4th and 7th rows 

     (a)  in the 2nd column by striking out "Drug" and substituting
"Inhibitors and drug";

     (b)  in the 3rd column

               (i)  by striking out "Drug" and substituting "Inhibitor
and drug";

               (ii) by striking out "tests approved by the National
Liaison Group on Milk Quality" and substituting "approved methods".


19   Section 82 is amended by striking out "July 31, 2004" and substituting
"January 31, 2007".


20   In the following provisions "Dairy Board Act" is struck and "Marketing
of Agricultural Products Act" is substituted:

     section 1(2)(b);
     section 40(3)(d).


21   Sections 3, 6, 7(a)(ii) and (b), 8, 11 to 14, 17 and 20 come into
force on the coming into force of the Dairy Industry Omnibus Act, 2002.


     ------------------------------

     Alberta Regulation 148/2002

     Dairy Industry Omnibus Act, 2002

     ALBERTA MILK RECORDS TRANSFER REGULATION

     Filed:  July 11, 2002

Made by the Lieutenant Governor in Council (O.C. 338/2002) on July 10, 2002
pursuant to section 1(12) of the Dairy Industry Omnibus Act, 2002.



Definitions
1(1)  In this Regulation,

     (a)  "Central Milk Testing Laboratory" means the approved laboratory
under the Dairy Industry Act;

     (b)  "Dairy Board" means the Alberta Dairy Control Board;

     (c)  "personal information" has the meaning prescribed in the
Freedom of Information and Protection of Privacy Act;

     (d)  "record" means record as defined in the Freedom of Information
and Protection of Privacy Act.

(2)  Words defined in the Alberta Milk Plan Regulation and the Alberta Milk
Marketing Regulation have the same meaning when used in this Regulation.


Transfer to Alberta Milk
2   The following records are transferred to Alberta Milk on the coming
into force of this Regulation:

     (a)  Dairy Board and policy committee minutes, including the
agendas, minutes and background information of the Dairy Board and policy
committee meetings;

     (b)  agreements that the Dairy Board entered into with federal and
provincial governments, provincial milk boards and Alberta agencies
involved with the dairy industry, including but not limited to the National
Milk Marketing Plan, the Western Milk Pooling Agreement and The
Comprehensive Agreement on Pooling of Milk Revenues;

     (c)  agreements that the Dairy Board entered into related to goods
and services required by the Dairy Board in carrying out its powers and
duties;

     (d)  Dairy Board orders and directives relating to production,
processing, supplying, transportation, distribution and sale of milk and
the Dairy Board orders and directives in effect on the coming into force of
this Regulation for excess milk prices, assessments, container sizes,
security requirements, class 1 conversion rates and milk hauling and
handling;

     (e)  the Dairy Board quota system database that is used for quota
administration, and production information and contains personal
information about producers, the quota allotment, quota adjustments based
on quota purchases, sales and leases, milk delivery volumes, test results
from the Central Milk Testing Laboratory, value of the milk delivered and
deductions;

     (f)  the electronic records and spreadsheets for the 2-year period
commencing August 1, 2000, except records that are subject to privilege or
are confidential to the Dairy Board or the Government;

     (g)  despite clause (f), the Dairy Board pooling system electronic
database

               (i)  that is used to calculate the value of the milk
received, under section 47 of the Dairy Industry Regulation (AR 139/99),
and processed and the cost of meeting obligations to the Western Milk Pool,
Special Classes Pool, export activity, provincial average component tests,
class 1 utilization, producer payment and processor receivables, and

               (ii) that is used for accounts receivable and payable,
verification audits at dairy plants.
     

Expiry
3   For the purpose of ensuring that this Regulation is reviewed for
ongoing relevancy and necessity, with the option that it may be repassed in
its present or an amended form following a review, this Regulation expires
on February 28, 2008.


Coming into force
4   This Regulation comes into force on the coming into force of the Dairy
Industry Omnibus Act, 2002.


     Alberta Regulation 149/2002

     Marketing of Agricultural Products Act

     ALBERTA MILK RECORDS DISCLOSURE REGULATION

     Filed:  July 11, 2002

Made by the Lieutenant Governor in Council (O.C. 339/2002) on July 10, 2002
pursuant to sections 12 and 54 of the Marketing of Agricultural Products
Act.


Definitions
1(1)  In this Regulation,

     (a)  "CDC" means the Canadian Dairy Commission;

     (b)  "Central Milk Testing Laboratory" means the approved laboratory
under the Dairy Industry Act;

     (c)  "CMSMC" means the Canadian Milk Supply Management Committee
created under the National Milk Marketing Plan;

     (d)  "Dairy Board" means the Alberta Dairy Control Board;

     (e)  "milk hauler" means the owner of a milk transport vehicle
subject to the Dairy Industry Act;

     (f)  "record" means a record as defined in the Freedom of
Information and Protection of Privacy Act that is in the custody or control
of the Alberta Dairy Control Board immediately before the coming into force
of this Regulation;

     (g)  "Secretariat" means the secretariat committee created under the
National Milk Marketing Plan.

(2)  Words defined in the Alberta Milk Plan Regulation and the Alberta Milk
Marketing Regulation have the same meaning when used in this Regulation.


Disclosure authorized
2   On the coming into force of this Regulation, the information in the
following records may be disclosed to Alberta Milk for continuation of the
operation of programs and activities to be continued by Alberta Milk
pursuant to the Act and the Dairy Industry Omnibus Act, 2002:

     (a)  minutes and correspondence between the provincial dairy
industry regulatory bodies of the 4 western provinces and the CDC relating
to formation and on-going operation of the Western Milk Pool pursuant to an
interprovincial agreement, including agendas, minutes and supporting
documentation of the Western Milk Pool Coordinating Committee, Technical
Committee and Audit Committee pursuant to the agreement;

     (b)  processor licensing application and inspection, purchase and
use reports, audit results, assessment records, administrative
correspondence, including letters, notices of new directives issued by the
Dairy Board, production data, copy of processor license;

     (c)  producer records created since January 1997 consisting of the
case files for all active and inactive producers containing license
applications, copies of licenses, inspections and reports, withdrawn notice
of appointment of power of attorney documents, producer name, address,
telephone number, Central Milk Testing numbers and CDC Registration
numbers;

     (d)  notice of appointment of power of attorney records consisting
of the notice of appointment of attorney documents filed by the lending
institutions who have a financial interest in a producer's quota, including
the original numbered documents, the register of active and withdrawn
documents, the producer's name, address, bank name and address and
signatories for both parties;

     (e)  letters to or from producers, processors, Central Milk Testing
Laboratory, CDC and quota brokers relating to producers, quota allocations
and quota transfers, quota exchange, year end adjustments, applications to
register as a producer, cancelled producer licences, withdrawn power of
attorney documents, reconciliations, working papers, reports, Central Milk
Testing Laboratory reports of producer test results, processor reports of
producer deliveries, producer payment, producer assessments and pay
deductions, and producer information changes that are monthly summaries of
the changes to a producer's personal information;

     (f)  working papers and final reports for the calculation of milk
utilization and prices to be paid to producers for milk delivered to
processors, processor reports of milk receipts and how the milk was used,
Class 1 sales of fluid milk and cream products, transportation costs for
milk transferred between processors, trucking compensation, reports of Milk
Grade and Price infractions, calculations done to determine Class 1
utilization, over-quota production, Western Milk Pooling obligations,
Special Classes Pooling activity, prices payable to producers, processor
liability to the provincial pool, monthly statistical reports summarizing
the results of pooling and the information used for verifying processor
reports and producer payment;

     (g)  records from 1996 to 2000 of Alberta's participation in a
federal government Optional Export Program operated by the CDC and from
2000 to the coming into force of this Regulation related to contracted
export milk, of correspondence with the CDC relating to the creation and
administration of the programs, a register of producers who have consented
to the release of personal information to processors seeking contracted
export milk, processor reports, information about producers participating
in contracted export milk trade, the amount of milk producers commit to
supply, deliveries and utilization of contract export milk and general
correspondence relating to the program and current policies;

     (h)  milk coordination records beginning on November 1, 2001
relating to transportation of milk from producers to processors and between
processors that is not in a producer, processor or milk hauler case file,
milk routes, rate schedules, plant capacity information, milk orders from
processors, dispatch reports, schedules, hauling claims, information from
other provinces on transportation systems and policies and statistical
analysis and reports;

     (i)  records of milk haulers contracted to transport milk from dairy
farms to dairy plants, including the names, mailing addresses, contract
numbers, milk transportation capabilities, transportation routes, contracts
and any other information or correspondence specific to each hauler;

     (j)  records related to producer payment, milk transportation
payment and processor receivables, including invoices and records required
to verify invoices and payment, related to equipment purchases and leases
transferred to Alberta Milk and monthly accounting transaction journals and
banking transactions;

     (k)  CDC, CMSMC, Secretariat and any committees of the CDC records
of correspondence with the CDC, minutes and supporting reports, analysis,
discussion papers and studies, for the agenda items of the CMSMC
Secretariat and other CDC committees.


Expiry
3   For the purpose of ensuring that this Regulation is reviewed for
ongoing relevancy and necessity, with the option that it may be repassed in
its present or an amended form following a review, this Regulation expires
on February 28, 2008.


Coming into force
4   This Regulation comes into force on the coming into force of the Dairy
Industry Omnibus Act, 2002.


     Alberta Regulation 150/2002

     Marketing of Agricultural Products Act

     ALBERTA MILK PLAN REGULATION

     Filed:  July 11, 2002

Made by the Lieutenant Governor in Council (O.C. 340/2002) on July 10, 2002
pursuant to sections 12, 17 and 54 of the Marketing of Agricultural
Products Act.


     Table of Contents

Definitions    1
Designation    2

     Part 1
     General Operation of Plan

     Division 1
     Plan

Establishment of plan    3
Termination of plan 4
Application of the plan  5
Purposes of the plan     6

     Division 2
     Responsibilities of Alberta Milk

Creates Alberta Milk     7
Responsibilities    8
Regulations to operate the plan    9
Financing the plan  10
Remuneration   11
Appointment of auditor   12
Authority from a Canada Act   13
Funds established   14

     Part 2
     Governance of Plan

     Division 1
     Licensed Producers

Licensed producers, directors and delegates  15
Eligibility    16
Producers who are not individuals  17

     Division 2
     Regions, Delegates and Region Committees

Regions   18
Region delegates    19
Region committees   20
Region committee meetings     21
Quorum re region committee meetings     22
Qualifications re delegates   23
Election of delegates    24
Terms of office of delegates  25
Non-eligibility     26
Vacancy re delegates     27
Functions of delegates   28

     Division 3
     Region  Meetings

Annual region meeting    29
Special region meeting   30
Financing of general region meetings    31
Calling of general and special region meetings    32
Quorum re general region meeting   33

     Division 4
     Directors

Directors 34
Responsibility of directors   35
Election of region directors  36
Election of directors at large     37
Qualifications re director    38
Function of directors    39

     Division 5
     Executive

Chair, vice-chair, etc.  40
Director's meetings 41
Quorum re director's meetings 42
Term of office of director    43
Vacancy re directors     44

     Division 6
     Alberta Milk Meetings

Annual meetings     45
Notification of meetings 46
Quorum at annual and special meetings   47

     Part 3
     Voting and Elections

     Division 1
     Voting by Licensed Producers

Voting    48
Voting in regions   49
Voters' list   50
Nominations    51
Name must be on current list of licensed producers     52
Eligibility to vote re delegates and directors    53
Eligibility to vote re licensed producers    54
Insufficient attendance for an election 55
Tie vote  56

     Division 2
     Returning Officer

Returning officer   57

     Division 3
     Controverted Elections

Controverted elections   58

     Part 4
     Transitional Provisions, Review
     and Coming into Force

Transitional provisions  59, 60
Review    61
Coming into force   62

Schedule


Definitions
1   In this plan,

     (a)  "Act" means the Marketing of Agricultural Products Act;

     (b)  "agricultural product" means agricultural product as designated
in section 2;

     (c)  "Alberta Milk" means the corporation established under section
7;

     (d)  "annual meeting" means an annual general meeting of the
directors and delegates;

     (e)  "communal living group" means a community of not fewer than 50
individuals in which

               (i)  the members live and work together in an
agricultural enterprise,

               (ii) a member is not permitted to own property in the
member's own right, and

               (iii)     the members devote their working lives to the
activities of the communal group;

     (f)  "contracted export milk" means milk delivered pursuant to an
agreement between a producer and a processor or other person, where that
milk and the dairy products made from that milk are exported from Canada by
that processor or other person in accordance with the agreement;

     (g)  "Council" means the Alberta Agricultural Products Marketing
Council;

     (h)  "dairy animal" means a female animal of the Bos taurus species
kept for the purposes of milking;

     (i)  "dairy farm" means a premises where one or more dairy animals
are kept and from which a part or all of the milk is sold, offered for sale
or supplied for human consumption, and includes all buildings and land
occupied or used in connection with the production of milk;

     (j)  "dairy product" means

               (i)  milk,

               (ii) a product of milk that contains no oil or fat other
than that of milk and contains a minimum of 50% milk ingredients by weight,

               (iii)     a product of milk that is prescribed by a standard
for dairy products in the regulations under the Canada Agricultural
Products Act (Canada), and

               (iv) milk products;

     (k)  "delegate" means a person elected or appointed as a delegate,
under Part 2, to represent a district or region;

     (l)  "director" means a director of Alberta Milk, whether elected as
a director from a region or at large;

     (m)  "farm-separated cream" means the fatty liquid separated from
raw milk on a dairy farm;

     (n)  "licensed producer" means a person who holds a producer licence
issued by Alberta Milk;

     (o)  "marketing" means buying, owning, selling, offering for sale,
storing, grading, assembling, packing, transporting, advertising or
financing, distributing, reselling and pricing;

     (p)  "milk" means the normal lacteal secretion from a dairy animal;

     (q)  "milk product" means processed milk in the form of standard
milk, homogenized milk, 2% partly skimmed milk, 1% partly skimmed milk,
skim milk, chocolate partly skimmed 2% milk, chocolate partly skimmed 1%
milk, chocolate milk, flavoured milk, buttermilk, 6% cream, 10% cream, 18%
cream, whipping cream, heavy cream, eggnog or any other processed milk
product;

     (r)  "minimum price" means the price to be paid for regulated
product, subject to any deduction or adjustments authorized under the Act,
the Dairy Industry Act or the regulations under either Act;

     (s)  "person" means a person as defined in the Interpretation Act
and includes

               (i)  a corporation and the heirs, executors,
administrators or other legal representatives of a person,

               (ii) a partnership as defined in the Partnership Act,

               (iii)     an unincorporated organization that is not a
partnership referred to in subclause (ii), and

               (iv) any group of individuals who are carrying on an
activity for a common purpose and are neither a partnership referred to in
subclause (ii) nor an unincorporated organization referred to in subclause
(iii);

     (t)  "plan" means the Alberta Milk Plan that is established under
section 3;

     (u)  "processing" means

               (i)  with respect to milk, to pasteurize, homogenize or
treat milk so that the milk's form or composition is altered in any manner,
and includes the cleaning and sanitizing of any surface, including the
surface of equipment that comes into contact with the milk while it is
being pasteurized, homogenized, packaged or treated, and

               (ii) with respect to dairy products other than milk, to
manufacture, modify, pasteurize, prepare, reconstitute, package or store
dairy products, and includes the cleaning and sanitizing of any surface,
including the surface of equipment that comes into contact with the dairy
product while it is being manufactured, modified, pasteurized, prepared,
reconstituted, packaged or stored;

     (v)  "processor" means any person who processes for sale, 50 litres
or more of milk or dairy products on any day, but does not include a retail
establishment that operates or uses a freezing device to freeze a frozen
dairy product mix;

     (w)  "producer" means a person who sells or supplies for sale the
regulated product that has been produced by one or more dairy animals owned
or controlled by that person;

     (x)  "quota" means the privilege allocated by Alberta Milk to a
producer to market regulated product.

     (y)  "raw milk" means milk and farm-separated cream that comes from
a dairy farm and has not been pasteurized within the meaning of the Dairy
Industry Act;

     (z)  "regulated product" means raw milk and farm separated cream;

     (aa) "special meeting" means a special general meeting of the
directors and of the delegates.

     (bb) "sub-class 1a milk" means sub-class 1a milk, other than
contracted export milk, within the meaning of the Alberta Milk Marketing
Regulation;




Designation
2   Raw milk, farm-separated cream and dairy products are designated as an
agricultural product for the purposes of the Act.


     PART 1

     GENERAL OPERATION OF PLAN

     Division 1
     Plan

Establishment of plan
3   The Alberta Milk Plan is hereby established.


Termination of plan
4   The plan does not terminate at the conclusion of a specific period of
time and must remain in force unless otherwise terminated pursuant to the
Act.


Application of the plan
5(1)  The plan applies

     (a)  to all of Alberta,

     (b)  to all persons who produce or market the regulated product, 

     (c)  for the purposes of section 9(1)(b), (c), (d), (e), (g), (j)
and (l) and 9(2)(c), (i), (j), (k), (l), (m), (n), (o), (p), (q), (r), (s),
(t), (u), (v), (w), (x) and (y), to processors, and

     (d)  for purposes of section 9(1) and (2)(c), (e), (g), (i), (n),
(p), (q), (t), (v) and (y), to contracted export milk.

(2)  Despite subsection (1), a person who has not been allocated a quota
under the plan is exempt from the plan if

     (a)  the person produces less than 50 litres per day of regulated
product,

     (b)  the person ordinarily resides on the same parcel of land on
which the production facilities where the regulated product is produced are
located, and

     (c)  not more than 50 litres per day of the regulated product is
produced on the land where the production facilities are located.

(3)  Despite subsection (1), the production and marketing of contracted
export milk is exempt from

     (a)  quota provisions,

     (b)  levies, and

     (c)  service charges under section 10(2)(a) and (b).

(4)  Despite anything in this plan, the Alberta Energy and Utilities Board
may prescribe for sub-class 1a milk the minimum price that is to be paid by
processors.


Purposes of the plan
6   The purpose of the plan is

     (a)  to provide for the effective control and regulation of the
production and marketing of the agricultural product and to initiate and
carry out programs to commence, stimulate, increase or improve the
production or marketing, or both, of the agricultural product,

     (b)  without limiting the generality of clause (a), to accomplish
the following:

               (i)  to fix and allot quotas for the production and
marketing of the regulated product,

               (ii) to maintain a fair and stabilized price for the
regulated product,

               (iii)     to establish and maintain pools for the
distribution of all money payable to producers from the sale of the
regulated product,

               (iv) to develop and maintain the orderly marketing of
the regulated product,

               (v)  to provide a consistent supply of high quality
regulated product for the market,

               (vi) to promote the regulated product and agricultural
product,

               (vii)     to fund research in connection with the regulated
product and agricultural product,

               (viii)    to fund education in connection with the
regulated product and agricultural product, and

               (ix) to work with marketing boards and organizations
having similar objectives,

     and

     (c)  to regulate contracted export milk only to the extent necessary
to protect the integrity of and the orderly marketing of, the domestic
market, quality control and food safety.


     Division 2
     Responsibilities of Alberta Milk

Creates Alberta Milk
7(1)  A board with the name "Alberta Milk" is hereby established consisting
of the directors elected or appointed in accordance with this Regulation.

(2)  Alberta Milk must operate pursuant to the plan.


Responsibil-ities
8   Alberta Milk without limiting the generality of section 16 of the
Interpretation Act

     (a)  is, subject to the Act, responsible for the operation,
regulation, supervision and enforcement of the plan;

     (b)  may appoint officers and agents, prescribe their duties and fix
and provide for their remuneration;

     (c)  must open one or more bank accounts and designate any officers,
employees and other persons necessary to

               (i)  sign cheques and other negotiable instruments,

               (ii) transact the business of Alberta Milk with its
bank, trust corporation, credit union, treasury branch or other depository,
and

               (iii)     generally do all things incidental to or in
connection with the transaction of the business of Alberta Milk with its
bank, trust corporation, credit union, treasury branch or other depository;

     (d)  must maintain books and records, including financial records
that are required to be kept pursuant to the Act that relate to the Alberta
Milk, regulated product or agricultural product;

     (e)  must maintain an office and notify each licensed producer,
licensed processor and the Council of the location of the office;

     (f)  subject to the Act, may issue administrative orders and
directions governing the internal operations of Alberta Milk;

     (g)  may become a member of and may contribute funds to, any
organization that promotes the interest of the industry.


Regulations to operate the plan
9(1)  For the purposes of enabling Alberta Milk to operate the plan,
Alberta Milk may be empowered by the Council, pursuant to section 26 of the
Act, to make regulations

     (a)  requiring producers engaged in the production or marketing, or
both, of the regulated product to register their names and addresses with
Alberta Milk;

     (b)  requiring any person who produces, markets or processes the
regulated product to furnish to Alberta Milk any information or record
relating to the production, marketing or processing of the regulated
product that Alberta Milk considers necessary;

     (c)  requiring persons to be licensed under the plan before they
become engaged in the production, marketing or processing, or any one or
more of those functions, of the regulated product;

     (d)  prohibiting persons from engaging in the production, marketing
or processing of the regulated product except under the authority of a
licence;

     (e)  governing the issuance, suspension or cancellation of a
licence;

     (f)  providing for

               (i)  the assessment, charging and collection of service
charges, levies and licence fees from producers for the purposes of the
plan, and

               (ii) the taking of legal action to enforce payment of
the service charges, levies and licence fees;

     (g)  requiring any person who receives any regulated product from a
producer

               (i)  to deduct from the money payable to the producer
any service charges, licence fees or levies payable by the producer to
Alberta Milk, and

               (ii) to forward the amount deducted to Alberta Milk;

     (h)  providing for the use of any class of service charges, licence
fees, levies or other money payable to or received by Alberta Milk for the
purpose of paying its expenses and administering the plan and the
regulations made by Alberta Milk;

     (i)  providing for the payment to a Canada Board of money that is
payable under a Canada Act;

     (j)  requiring persons who produce, market or process a regulated
product to mark the containers of their products to show the place of
origin or place of production to the satisfaction of Alberta Milk;

     (k)  permitting Alberta Milk to exercise any one or more of the
powers that are vested in a cooperative association under the Co-operative
Associations Act and under the Cooperatives Act;

     (l)  providing for classifying producers, processors and others into
groups for the purposes of the plan.

(2)  For the purposes of enabling Alberta Milk to operate this plan,
Alberta Milk may be empowered by the Council, pursuant to section 27(1) of
the Act, to make regulations

     (a)  requiring that the production or marketing, or both, of the
regulated product be conducted pursuant to a quota;

     (b)  governing

               (i)  the fixing and allotting of quotas,

               (ii) the increase or reduction of quotas,

               (iii)     the cancelling of quotas, and

               (iv) the refusal to fix and allot quotas

     to producers for the production or marketing, or both, of the
regulated product on any basis that Alberta Milk considers appropriate;

     (c)  respecting the regulation of the supply of a regulated product
by producers to processors, including but not restricted to the
transportation, delivery and supply of the regulated product to processors,
entitlement of processors to the regulated product and transferring of the
regulated product among processors;

     (d)  governing the transferability or non-transferability of quotas
and prescribing the conditions and procedures applicable to the transfer of
quotas, if any, that Alberta Milk considers appropriate;

     (e)  establishing

               (i)  a formula for determining the volume, weight,
components, contents, amount or number of regulated product deemed to have
been produced or marketed by a producer, and

               (ii) the period of time in respect of which the formula
is to be applied,

          for the purpose of determining the amount of regulated product
produced or marketed by a producer during a period of time;

     (f)  requiring any person who provides any agricultural product to a
producer under the plan to furnish to Alberta Milk any information
requested by Alberta Milk;

     (g)  determining the quantity, weight and volume of each class,
variety, size, grade, components and contents of the regulated product that
shall be produced or marketed, or both, by each producer;

     (h)  requiring a producer who produces the regulated product to
market the regulated product through Alberta Milk or through a designated
agency;

     (i)  directing, controlling or prohibiting the production or
marketing, or both, of the regulated product or any class, variety, size,
grade or kind of the regulated product in a manner that Alberta Milk
considers appropriate;

     (j)  regulating and controlling the production or marketing, or
both, of the regulated product, including the times and places at which the
regulated product may be produced or marketed;

     (k)  determining from time to time the minimum price or prices that
shall be paid to producers for the regulated product or any class, variety,
size, grade, volume, weight, components, contents or kind of the regulated
product and determining different prices for different parts of Alberta;

     (l)  governing the priority of use for the regulated product or any
class, variety, size, grade, volume, weight or kind of the regulated
product;

     (m)  requiring that the money payable or owing to a producer for the
regulated product be paid to or through Alberta Milk;

     (n)  providing for the payment to a producer of the money payable or
owing for the regulated product, less any service charges and levies owing
to Alberta Milk by the producer, and fixing the time or times at which or
within which the payments must be made;

     (o)  respecting the amount, manner and time of payments to producers
by processors and requiring the making of statements and other documents
accompanying payments  and respecting the information to be contained in
the statements and other documents;

     (p)  respecting the payment to the producer of the money payable or
owing for the regulated product, less the cost of any inspection, grading
or testing costs and other costs required to ensure proper operation of the
plan;

     (q)  providing

               (i)  for the operation of one or more pools for the
distribution of all money payable to the producers from the sale of the
regulated product,

               (ii) for the deduction of reasonable and proper
disbursements and expenses with respect to the operation of the pool, and

               (iii)     for the deduction of service charges and levies,
including but not restricted to inspection costs, transportation, testing
and grading costs and other costs required to ensure the proper operation
of the plan;

     (r)  providing for the collection from any person by legal action of
money owing to a producer for the regulated product;

     (s)  governing

               (i)  the furnishing of security or proof of financial
responsibility by any person engaged in the production, marketing or
processing of the regulated product, and

               (ii) the administration and disposition of any money or
securities so furnished;

     (t)  establishing grades for a regulated product, respecting the
grading of the regulated product and providing for deductions from the
price based on grade, and providing for netting out, in conjunction with
pools, all amounts payable among producers, processors and Alberta Milk;

     (u)  respecting the use of a regulated product based on the class,
weight or volume available of the regulated product;

     (v)  requiring purchasers of a regulated product and processors of
the regulated product and agricultural products to provide information in a
form acceptable to Alberta Milk respecting the source, weight and volume of
the regulated product and of the agricultural products used to process and
produce additional agricultural products and the class, volume, contents,
components, weight and amount of those agricultural products and providing
for the assessment, charging and collection of service charges respecting
the verification of the information;

     (w)  prohibiting any person from marketing or processing any of the
regulated product that has not been sold by or through Alberta Milk or
designated agency;

     (x)  providing for the terms and conditions on which a person may
market the regulated product in excess of the quota fixed and allocated to
the person;

     (y)  permitting or prohibiting the transfer of the regulated product
from one producer to another and permitting or prohibiting the transfer of
the regulated product from one processor to another.

(3)  If an agricultural product is not a regulated product under the plan
but is instrumental with respect to the production or marketing of the
regulated product, the Council may, with the approval of the Minister,
authorize Alberta Milk to make regulations

     (a)  governing that agricultural product as if it were a regulated
product under the plan;

     (b)  governing, with respect to that agricultural product, the
producers of the regulated product under the plan as if it were a regulated
product under the plan;

     (c)  establishing and governing a formula for determining the amount
or number of a regulated product produced or deemed to have been produced
from that agricultural product.

(4)  If Alberta Milk makes regulations under subsection (3), those
regulations apply with respect to the agricultural product only

     (a)  while that agricultural product is in the possession or under
the control of the producer of the regulated product, or

     (b)  while payment with respect to the regulated product is owing to
the producer, processor or Alberta Milk for that agricultural product or
verification of end use of the agricultural product is required to finalize
transactions between the producer, processor and Alberta Milk.

(5)  If an agricultural product is not a regulated product under the plan
but is used to produce an agricultural product, the Council may, with the
approval of the Minister authorize Alberta Milk to make regulations

     (a)  governing, with respect to that agricultural product, the
producers and processors of the regulated product under the plan in the
same manner as if the agricultural product were the regulated product under
the plan;

     (b)  establishing and governing a formula for determining the size,
volume, weight, components or number of agricultural product produced or
deemed to have been produced from the size, volume, weight, components or
number of the regulated product.

(6)  If Alberta Milk makes regulations under subsection (5), those
regulations apply with respect to the agricultural product only while the
agricultural product is owned or controlled by a processor or while payment
with respect to the regulated product is still owing to a producer,
processor or Alberta Milk or if verification of the ultimate use of the
regulated product is required to determine money owing to a producer,
processor or Alberta Milk in respect of the regulated product.


Financing the plan
10(1)  In accordance with the regulations this plan must be financed by the
charging and collection of service charges, licence fees and levies.

(2)  Service charge revenue must be accounted for in at least the following
3 categories:

     (a)  marketing and nutrition education;

     (b)  research;

     (c)  administration for the proper administration of the plan.

(3)  Subject to subsection (4), Alberta Milk may change the amount of a
service charge.

(4)  A change to a service charge respecting marketing and nutrition
education and research is not effective until the change has been approved
by a vote of the majority of licensed producers throughout Alberta.

(5)  A vote under subsection (4) must be held in each region at an annual
or special region meeting.


Remuneration
11   The remuneration to be paid to the directors and delegates must be
fixed by a vote of the directors and delegates at an annual meeting or
special meeting.


Appointment of auditor
12(1)  The delegates must appoint an auditor for Alberta Milk.

(2)  The appointment of an auditor must be made at an annual meeting or a
special meeting.


Authority from a Canada Act
13   Alberta Milk is empowered to accept and exercise any power and
authority delegated to it by or pursuant to the Canadian Dairy Commission
Act (Canada), the Agricultural Products Marketing Act (Canada) and the Farm
Products Agencies Act (Canada).


Funds established
14(1)  Alberta Milk may establish one or more funds under section 34 or 35
of the Act.

(2)  In order to finance the funds, Alberta Milk may raise amounts in
accordance with section 34 and 35 of the Act.


     PART 2

     GOVERNANCE OF PLAN

     Division 1
     Licensed Producers

Licensed producers, directors and delegates
15   In accordance with this plan, a licensed producer is entitled, as a
matter of right,

     (a)  to attend annual region meetings and special region meetings;

     (b)  to attend annual meetings and special meetings;

     (c)  to make representations and to present resolutions on any
matter pertaining to this plan, Alberta Milk and the directors;

     (d)  to vote in an election for delegates within the licensed
producer's district;

     (e)  if elected as a delegate, to vote in an election for that
region's region director;

     (f)  if elected as a delegate, to vote in an election for directors
at large;

     (g)  if elected, to hold office as a delegate or director;

     (h)  to vote in any plebiscites of producers held under the Act.


Eligibility
16   In order to be elected to serve as a delegate or a director a person
must be elected or appointed under this Part, and

     (a)  if the delegate or director is an individual, the delegate or
director must be

               (i)  a licensed producer,

               (ii) allocated quota by Alberta Milk, and

               (iii)     at least 18 years old,

     or

     (b)  if the delegate or director is not an individual, the delegate
or director must be

               (i)  an officer of a company that is a licensed producer
and allocated quota by Alberta Milk,

               (ii) a partner in a partnership that is a licensed
producer and allocated quota by Alberta Milk,

               (iii)     an officer of a company that is a partner in a
partnership that is a licensed producer and allocated quota by Alberta
Milk,

               (iv) a co-venturer in a joint venture that is a licensed
producer and allocated quota by Alberta Milk,

               (v)  an officer of a company that is a co-venturer in a
joint venture that is a licensed producer and allocated quota by Alberta
Milk, or

               (vi) a designate of a communal living group that is a
licensed producer and allocated quota by Alberta Milk.


Producers who are not individuals
17(1)  If a licensed producer is not an individual, that licensed producer
may, only in accordance with this section, exercise the rights of a
licensed producer referred to in section 15.

(2)  A licensed producer to which this section applies must appoint an
individual to be the representative of the licensed producer.

(3)  A representative appointed by a licensed producer under this section
is, subject to this plan, to exercise on behalf of the licensed producer
the rights referred to in section 15.

(4)  If a licensed producer is

     (a)  a corporation, it must appoint an individual who is a director,
shareholder, member, officer or employee of the corporation as its
representative,

     (b)  a partnership, it must appoint an individual who is a partner
or employee of the partnership as its representative, or

     (c)  an organization, other than a corporation or a partnership, it
must appoint an individual who is a member, officer or employee of the
organization as its representative.

(5)  An appointment of a representative under this section must be

     (a)  in writing, and

     (b)  filed with Alberta Milk.

(6)  An individual who is the representative of a licensed producer shall
not cast a vote under this plan unless

     (a)  the individual presents a document signed by the licensed
producer indicating the name of the person who may vote for the licensed
producer, or

     (b)  subject to subsection (7), the individual makes a statutory
declaration in writing stating that

               (i)  the individual is a representative of the licensed
producer, and

               (ii) the individual has not previously voted in the
election or on the matter in respect of which the individual wishes to cast
a vote.

(7)  A statutory declaration must be made in writing before the returning
officer or the deputy returning officer prior to the vote being cast.

(8)  An individual cannot at any one time be a representative under this
section for more than one licensed producer.

(9)  An individual who is appointed as a representative of a licensed
producer must not vote in an election or on any other matter or hold office
under this plan in the individual's own capacity as a licensed producer.

(10)  A representative must not vote or hold office before the
representative's appointment is filed in accordance with subsection (5) or
the representative has complied with subsection (6).


     Division 2
     Regions, Delegates and Region Committees

Regions
18(1)  For the purpose of this plan, Alberta is divided into 4 regions.

(2)  The area included in each region is as set out in the Schedule to this
plan.

(3)  Each region is divided into 2 districts.

(4)  Producers in each region are assigned to a district within the region
by Alberta Milk.


Region delegates
19(1)  Each region is to be represented by delegates elected in accordance
with section 24.

(2)  The number of delegates to represent a region is 8.


Region committees
20(1)  The delegates for a region and the directors for the region form the
region committee for that region.

(2)  The chair of the region committee is to be elected by the region
committee.


Region committee meetings
21(1)   Delegates must conduct region committee meetings

     (a)  at the call of the chair of the region committee, or

     (b)  at the request of Alberta Milk.

(2)  Alberta Milk must pay the reasonable expenses of region committee
meetings.


Quorum re region committee meetings
22   The quorum for a region committee meeting is a majority of the
delegates within the region then holding office.


Qualifications re delegates
23   A delegate must

     (a)  be a licensed producer,

     (b)  carry on production of the regulated product in the region that
the delegate is elected to represent, and

     (c)  carry on production of the regulated product in the district
that the delegate is assigned to by Alberta Milk.


Election of delegates
24(1)  At the region's initial annual region meeting or meetings, the
licensed producers in each district are to elect 4 delegates to represent
the licensed producers assigned to that district.

(2)  If no more than the required number of licensed producers have been
nominated to fill the required number of positions of delegates for a
district, the returning officer must declare the licensed producers
nominated as being elected by acclamation.

(3)  If less than the required number of delegates for a district have been
declared elected by acclamation, the delegates in that district who have
been declared elected may appoint licensed producers, who are eligible to
be elected as delegates for that district, to the remaining delegate
positions and the licensed producers so appointed hold office as if
elected.


Terms of office of delegates
25(1)  Each delegate is to be elected for a term of 3 years.

(2)  The term of office of a delegate

     (a)  commences on the conclusion of the annual region meeting at
which the delegate was elected, and

     (b)  expires on the conclusion of the annual region meeting that
takes place in the year that the delegate's term of office is to expire.


Non-eligibility
26(1)  A person is disqualified from acting as a director or delegate if
that person

     (a)  is a dependent adult as defined in the Dependent Adults Act, or
is the subject of a certificate of incapacity under that Act;

     (b)  is a formal patient as defined in the Mental Health Act;

     (c)  has been found to be a person of unsound mind by a court
elsewhere than in Alberta;

     (d)  has the status of a bankrupt;

     (e)  is not a resident of Alberta;

     (f)  ceases to be a licensed producer or a representative of a
licensed producer;

     (g)  is absent for 3 consecutive meetings without the prior approval
of Alberta Milk;

     (h)  has had that person's term of office expire;

     (i)  ceases to be allocated quota;

     (j)  resigns that person's office.

(2)  Despite subsection (1), a director or delegate may remain in office
until a replacement is found.


Vacancy re delegates
27(1)  If a delegate ceases to hold office before the expiry of that
delegate's term of office, the remaining delegates from that district may
appoint another licensed producer, who is eligible to be elected as a
delegate for that district, as a delegate to replace the delegate who
ceased to hold office.

(2)  If a person is appointed as a delegate under subsection (1), that
person is to serve for the unexpired portion of that term of office.


Functions of delegates
28   In addition to what a licensed producer may do under the plan, a
delegate may

     (a)  attend any annual meeting and any special meeting;

     (b)  make representations and resolutions and may bring forward
resolutions from regional meetings on any matter pertaining to the plan or
the operation of Alberta Milk;

     (c)  vote on each matter put to the question;

     (d)  vote in any election for region director within the delegate's
region and vote in any election for a director at large;

     (e)  be appointed by the directors to sit as a member of a committee
established by Alberta Milk;

     (f)  be appointed by Alberta Milk to represent Alberta Milk on any
task force, committee, group or organization of which Alberta Milk is a
member.


     Division 3
     Region Meetings

Annual region meeting
29(1)  Alberta Milk must, before the commencement of the annual meeting,
hold, in each region, an annual region meeting of the licensed producers
who carry on production of the regulated product within the region.

(2)  At an annual region meeting the licensed producers in the region are
to be provided with

     (a)  information with respect to Alberta Milk, and

     (b)  an opportunity, when necessary, to conduct delegate elections
for each district in the region.

(3)  More than one annual region meeting may take place in a region to
facilitate producer attendance.

(4)  If more than one annual meeting is held pursuant to subsection (3),
the combination of the meetings held constitutes the annual regional
meeting.


Special region meetings
30   Alberta Milk must

     (a)  hold a special region meeting of the licensed producers who
carry on production of the regulated product within the region on the
request of the region director or the region committee, or

     (b)  hold a special region meeting on written request of 10 licensed
producers from within the region.


Financing of general region meetings
31   The annual region meetings and any special region meetings are to be
organized and financed by Alberta Milk.


Calling of general and special region meetings
32(1)  The time, place and day of any annual region meeting and of any
special region meeting is to be set by Alberta Milk.

(2)  Alberta Milk must publish a notice of any annual region meeting and of
any special region meeting

     (a)  in the newsletter published by Alberta Milk,

     (b)  in a newspaper having general circulation within the region, or

     (c)  by direct mail, fax or any electronic means.

(3)  Despite subsection (2), Alberta Milk may publish or otherwise
publicize notice of a meeting in any other manner that Alberta Milk
determines.

(4)  A notice of a meeting must set forth the time, location, day and
purpose of the meeting.


Quorum re general region meeting
33(1)  The quorum for an annual region meeting or a special region meeting
is not fewer than 10 of the licensed producers who carry on production of
the regulated product within the region in respect of which the meeting is
being conducted.

(2)  Where more than one annual region meeting or special region meeting
takes place within a region for the same purpose, the quorum is the
combined attendance at the meetings.


     Division 4
     Directors

Directors
34   The board of directors of Alberta Milk consists of the following
members: 

     (a)  8 region directors elected under section 36;

     (b)  3 directors to be elected at large under section 37.


Responsibility of the directors
35(1)  The responsibilities of Alberta Milk, the authority delegated to
Alberta Milk by the Council and the direction, administration and
management of the work of Alberta Milk, its business and affairs, including
the control and management of all the assets owned, held and acquired by
Alberta Milk, are vested in the board of directors.

(2)  The board of directors has the power to do all things necessary to
carry out the purpose of this plan and the responsibilities and authority
of Alberta Milk.

(3)  The board of directors may authorize any person, entity or committee
to exercise any of the powers of the directors as set forth in this plan or
otherwise.

(4)  If a person, entity or committee is authorized under subsection (3) to
exercise a power,

     (a)  that person, entity or committee must report back to the
directors with respect to the exercise of that power, and

     (b)  the directors must retain a supervisory function to oversee the
actions of that person, entity or committee in the exercise of that power.


Election of region directors
36(1)  The election of directors to represent a region is to be carried out
by means of a vote conducted by the region committee following the
announcement of the results of the delegate election, but before the
commencement of the annual meeting.

(2)  Each region must be represented by 2 region directors.


Election of directors at large
37(1)  At the first annual meeting, the region delegates must elect from
among themselves 3 directors at large.

(2)  If less than or only a sufficient number of region delegates have been
nominated to fill the required number of director at large positions, the
returning office must declare the region delegates nominated as being
elected by acclamation.

(3)  If less than the required number of directors at large have been
declared elected by acclamation under subsection (2), the region directors
and the directors at large that have been elected must appoint a region
delegate to the remaining positions and the region delegate so appointed
must hold office as if elected.

(4)  Following the first annual meeting, directors at large must be elected
according to the terms of office, removal, vacancy and transitional
provisions of this plan.


Qualifications re director
38(1)  To be eligible for election as a director to represent a region, a
licensed producer must be an elected delegate and must carry on production
of the regulated product in that region.

(2)  To be eligible for election as a director at large, a licensed
producer must be an elected delegate and must carry on production of the
regulated product in Alberta.


Functions of directors
39   In addition to any function that a region delegate may carry out under
this plan, a region director or director at large may

     (a)  attend meetings of the board of directors;

     (b)  at meetings of the board of directors

               (i)  make representations and present resolutions and
motions on any matter pertaining to this plan or the operation of Alberta
Milk, and

               (ii) vote on any matter under this plan;

     (c)  vote at an election for the chair, vice-chair or executive
director of Alberta Milk;

     (d)  hold office as the chair, vice-chair or executive director of
Alberta Milk;

     (e)  be elected or appointed by the directors as the chair,
vice-chair, executive director or as a member of any committee established
by Alberta Milk;

     (f)  be elected or appointed by the directors to represent Alberta
Milk on any task force, committee group or organization of which Alberta
Milk is a member.


     Division 5
     Executive

Chair, vice-chair, etc.
40(1)  The first meeting of the board of directors must be held after the
region directors have been declared elected following the annual region
meeting and directors at large have been declared elected at the annual
meeting.

(2)  At the first meeting of the board of directors, the region directors
and directors at large must elect from among themselves a chair, vice-chair
and executive director of Alberta Milk.

(3)  If only one director, whether a region director or a director at
large, has been nominated for the position of chair, vice-chair or
executive director of Alberta Milk, the director so nominated is declared
elected by acclamation.


Directors' meetings
41   The board of directors may, at the call of the chair or of not fewer
than 3 directors, conduct meetings of the board of directors.


Quorum re directors' meetings
42(1)  The quorum for a meeting of the board of directors is a majority of
the directors.

(2)  In determining a quorum under subsection (1), a vacant director's
position on board of directors is not to be considered.


Term of office of director
43(1)  Each director is elected for a term of 3 years.

(2)  Subject to subsection (3), the term of office of a director

     (a)  in the case of a director at large,

               (i)  commences on the conclusion of the annual meeting
that takes place at which the director was declared elected, and

               (ii) expires on the conclusion of the annual meeting
that takes place in the year that the director's term of office is to
expire;

     (b)  in the case of a director to represent a region,

               (i)  commences on the conclusion of the annual region
meeting at which the director was elected, and

               (ii) expires on the conclusion of the annual region
meeting that takes place in the year that the director's term of office is
to expire.

(3)  The term of office of a director expires if the director ceases to be
a delegate.

(4)  A licensed producer may not serve for more than 2 consecutive 3-year
terms as a director.

(5)  If a licensed producer serves for 2 consecutive terms as a director,
that licensed producer is not eligible to serve again as a director until
one year has expired following the expiry of that licensed producer's last
term of office as a director.

(6)  Despite subsections (4) and (5), with the approval of the Council and
the producers, a member of the board of directors may be permitted to serve
as a member of board of directors for one additional 3-year term in order
to enable Alberta Milk to fulfill commitments to a national marketing board
or organization having similar objectives.

(7)  A director serving an additional term under subsection (6) is not
eligible to serve as a director until 3 years has expired following the
expiry of that licensed producer's additional term as a director.


Vacancy re directors
44(1)  If a vacancy occurs on the board of directors, the board of
directors may, with the approval of the Council, appoint another delegate
who is eligible to be elected as a director to fill that vacancy.

(2)  If a person is appointed as a director under subsection (1), that
person is to serve for the unexpired portion of the term.

(3)  If a person is appointed under this section, a term of less than 18
months is not considered a term under section 43.


     Division 6
     Alberta Milk Meetings

Annual meetings
45(1)  Alberta Milk must hold an annual meeting at least once in each
calendar year.

(2)  Not more that 16 months may elapse between annual meetings.

(3)  A special meeting of Alberta Milk

     (a)  may be called by the board of directors at any time, and

     (b)  must be called by the board of directors on the written request
of the Council or of 10 or more delegates.

(4)  The time and place of an annual meeting or a special meeting must be
fixed by the board of directors.


Notification of Board meetings
46(1)  If an annual meeting or a special meeting is to be held, Alberta
Milk must in writing notify each licensed producer of the meeting by
forwarding the notice by ordinary mail to the licensed producer at the
latest address for the licensed producer that is on the records of Alberta
Milk.

(2)  A notice given under this section

     (a)  must be forwarded to the licensed producer at least 14 days
before the meeting is to take place, and

     (b)  must set out

               (i)  the time, place, date and purpose of the meeting,
and

               (ii) any other information as determined by Alberta
Milk.


Quorum at annual and special meetings
47   The quorum necessary under this plan in the case of an annual meeting
or special meeting is 20 persons who are delegates and directors.


     PART 3

     VOTING AND ELECTIONS

     Division 1
     Voting by Licensed Producers

Voting
48(1)  A licensed producer who is eligible to vote may

     (a)  vote once on each matter, and

     (b)  in the case of an election of district delegates, vote for any
number of candidates not exceeding the number of members to be elected at
that meeting for the district in which the producer is eligible to vote,

despite that the licensed producer may manage or operate or own, lease or
hold equity in 2 or more operations that are licensed separately with
Alberta Milk.

(2)  A licensed producer is entitled to vote in any election for a district
delegate where the licensed producer

     (a)  resides within the district that the delegate is to represent,
and

     (b)  has not voted at a previous local meeting within the district
during the current election.

(3)  Despite subsection (2), if a licensed producer

     (a)  does not reside within the district or region in which the
producer wishes to vote for a delegate or director, but

     (b)  resides in any district or region that is adjacent to the
region in which the licensed producer wishes to vote,

the licensed producer may apply in writing to Alberta Milk, not less than
10 days prior to the day of the election in which the licensed producer
desires to cast a ballot, to be registered for the purposes of voting in
that adjacent district or region.

(4)  On receipt of the written approval of Alberta Milk of an application
made under subsection (3), the licensed producer is, subject to subsection
(5), eligible 

     (a)  to vote in the adjacent district or region in any election held
subsequent to the approval being received by the licensed producer, and

     (b)  during the time that the licensed producer is eligible to vote
in that adjacent district or region, to nominate persons to hold office and
to hold office as a region director or delegate to represent the licensed
producers in that adjacent district or region in the same manner and under
the same conditions as if that licensed producer resided in that adjacent
district or region.

(5)  If a licensed producer has received approval pursuant to subsection
(4) to vote in a district or region in which the licensed producer does not
reside, the licensed producer may, for a future election apply in writing
to change to the district or region in which the licensed producer resides,
but the licensed producer is not entitled to vote in the district or region
in which the licensed producer resides for the election immediately
following change in status of the licensed producer.

(6)  If a licensed producer has received approval pursuant to subsection
(4) to vote in an adjacent region, Alberta Milk must assign that producer
to a district within that region.


Voting in regions
49(1)  Voting for the delegates must occur at each region annual meeting
and must be by secret ballot.

(2)  At each region annual meeting where a delegate election is to take
place, each licensed producer must receive one delegate ballot for the
district in which the producer is eligible to vote.

(3)  There must be only one ballot issued per licence.

(4)  No licensed producer is entitled to more than one ballot, even though
the licensed producer may have been issued more than one licence.

(5)  No licensed producer is entitled to vote in more than one district or
region, even though that licensed producer may have been issued more than
one licence.

(6)  If the licensed producer is not an individual and the licensed
producer's representative has been appointed under section 17, the
representative is entitled to vote on behalf of the licensed producer.


Voters list
50(1)  If a delegate election is to be conducted, the returning officer
must prepare, not less than 30 days before the election is to be held, a
list of the licensed producers who are eligible to vote in the delegate
election.

(2)  The voter's list must be available to any person for inspection
before, during and after a delegate election.


Nominations
51(1)  Nominations for candidates for election as delegates at region
meetings must

     (a)  be signed by at least 2 licensed producers who carry on
production of the regulated product in that district or region and by the
nominee, and

     (b)  be delivered to the returning officer before the beginning of
the meeting at which the election is to be held.

(2)  Despite subsection (1), nominations from the floor of the annual
region meeting must be accepted if

     (a)  made and seconded by licensed producers who carry on production
of the regulated product in that district or region attending the meeting
at which the election is to be held, and

     (b)  the nominee

               (i)  is in attendance, and

               (ii) consents to the nomination.


Name must be on current list of licensed producers
52(1)  If a licensed producer is entitled to vote under this plan, the
licensed producer must not cast a vote unless the licensed producer's name
appears on the current list of licensed producers.

(2)  Despite subsection (1), a licensed producer may cast a vote if the
licensed producer makes a statutory declaration in writing before the
returning officer or deputy returning officer stating that the licensed
producer is a licensed producer and has not previously voted in the
election or on the matter in respect of which the licensed producer wishes
to cast a vote.


Eligibility to vote re delegates and directors
53(1)  Every delegate and director is eligible to vote on any question put
to a vote at an annual meeting or a special meeting if the delegate or
director is present at the meeting at which the vote is held.

(2)  Unless a licensed producer is a delegate or a director, that licensed
producer is not entitled to vote on any question put to a vote at an annual
meeting or a special meeting.

(3)  Despite subsection (2), a licensed producer who is not a delegate or a
director may, if so directed by the board of directors, vote on a question
put to a vote at a special meeting if the licensed producer is present at
the meeting at which the vote is held.


Eligibility to vote re licensed producers
54(1)  Subject to sections 29, 48, 49 and 51, a licensed producer is
eligible to vote in an election for a delegate and on any question put to a
vote at an annual region meeting or a special region meeting if the
licensed producer

     (a)  carries on production of the regulated product in the region,
and

     (b)  is present at the meeting at which the vote is held.

(2)  A delegate is eligible to vote in an election for a director if,

     (a)  in the case of an election of a director to represent a region,
the delegate carries on production in the region for which the election is
taking place and is present at the meeting at which the election is being
held, and

     (b)  in the case of an election of a director at large, the delegate
carries on production in Alberta and is present at the meeting at which the
election is being held.

(3)  Neither

     (a)  a licensed producer, nor

     (b)  a representative of a licensed producer provided for under
section 17,

may vote more than once on each matter even though the licensed producer or
the agent may manage or operate or own, lease or hold equity in 2 or more
operations.


Insufficient attendance for an election
55(1)  If an election is held under this plan and there is in attendance at
the meeting at which the election is held an insufficient number of persons
who are eligible to vote at the election,

     (a)  the election is void, and

     (b)  the position for which the election was held is vacant.

(2)  Even though a position is vacant under subsection (1),  the term of
office of the position is deemed to have commenced as if a person has been
elected to the position.

(3)  If a position is vacant under subsection (1), the board of directors
may, with the approval of the Council, fill the position by appointing,
from persons eligible to be elected to that position, a person to fill that
position.

(4)  A person appointed under subsection (3) is to serve for the unexpired
portion of the term that runs to the next annual meeting following the
person's appointment, at which time

     (a)  the person ceases to hold office, and

     (b)  an election is to be held to fill the office for the unexpired
portion, if any, of the term of the vacant position.

(5)  An appointment under this section is not considered a term of office.


Tie vote
56   If there occurs a tie vote for the position of delegate, director or
director at large, the returning officer or deputy returning officer must
immediately select, by draw of all the tied candidates, the candidate for
the position and that person is deemed to have been elected to the
position.


     Division 2
     Returning Officer

Returning officer
57(1)  The board of directors must appoint a returning officer for the
purposes of and in connection with any election or vote taken under this
plan.

(2)  The returning officer may appoint individuals as deputy returning
officers to assist in the conduct of elections and votes under this plan.

(3)  The returning officer

     (a)  must compile and maintain a voters' list of licensed producers
who are entitled to vote under this plan,

     (b)  is to ensure that a person does not cast a vote, except in
accordance with this plan, and

     (c)  must permit scrutiny of the actions of the returning officer
and the deputy returning officers by a scrutineer in respect of the conduct
of an election or a vote taken under this plan.

(4)  Unless otherwise directed by the Council, no person shall destroy any
records or ballots in respect of a vote or election held under this plan
until 90 days have elapsed from the day on which the vote was taken.


     Division 3
     Controverted Elections

Controverted elections
58(1)  If a licensed producer

     (a)  questions

               (i)  the eligibility of a delegate candidate,

               (ii) the eligibility of a voter,

               (iii)     any matter relating to a ballot or the tabulation
of ballots, or

               (iv) any other irregularity with respect to the conduct
of an election,

     and

     (b)  seeks to have the election declared invalid and the position
declared vacant,

that person may, not later than 15 days after the day on which the election
was held, apply in writing to the Council to have the election declared
invalid and the position declared vacant.

(2)  If, within the 15-day period referred to in subsection (1), the
Council has not received an application under subsection (1), a person
elected at the election is deemed to be duly elected.

(3)  On receipt of an application under subsection (1), the Council must
consider the matter and may

     (a)  declare the election to be proper and the position filled, if,
in the opinion of the Council, there is no basis for the application,

     (b)  declare the election to be proper and the position filled, even
though that there is a basis for the application, if, in the opinion of the
Council,

               (i)  the basis for the application did not materially
affect the result of the election, and

               (ii) the election was conducted substantially in
accordance with this plan and the Act,

     or

     (c)  declare the election to be void and the position vacant, if, in
the opinion of the Council, there is a basis for the application and the
basis is sufficient to, or did, affect the result of the election.

(4)  Despite that an election is declared void and a position is declared
vacant under subsection (3)(c), the term of office of the position declared
vacant is nevertheless deemed to have commenced on the day that the voided
election was held.

(5)  If the Council declares an election to be void and the position
vacant, the Council may

     (a)  order that, within the time that the Council considers proper,
a special region meeting be held and an election be conducted to fill the
vacant position, or

     (b)  direct that a licensed producer be appointed to the position
under section 27 or 44, as the case may be, to fill the vacant position.

(6)  If a person fills a position under subsection (5), the person is to
serve for the unexpired portion of the term.


     PART 4

     TRANSITIONAL PROVISIONS, REVIEW
     COMING INTO FORCE

Transitional provisions
59(1)  Despite section 25, at the initial election of delegates, delegates
are elected for the following terms:

     (a)  in all Regions, one delegate from each district is elected for
a 3-year term, one delegate from each district is elected for a 2-year term
and one delegate for each district is elected for a 1-year term, and

     (b)  in addition to the delegates under clause (a)

               (i)  in the Northwest Region, one delegate from one
district is elected for a 2-year term and one delegate from the other
district is elected for a 1-year term;

               (ii) in the Northeast Region, one delegate from one
district is elected for a 3-year term and one delegate from the other
district is elected for a 2-year term;

               (iii)     in the Central Region, one delegate from one
district is elected for a 2-year term and one delegate from the other
district is elected for a 1-year term;

               (iv) in South Region, one delegate from one district is
elected for a 3-year term and one delegate from the other district is
elected for a 1-year term.

(2)  Despite section 43, at the initial election of directors, directors
are elected for the following terms

     (a)  in the Northwest Region, one director is elected for a 2-year
term and one director is elected for a 1-year term;

     (b)  in the Northeast Region, one director is elected for a 3-year
term and one director is elected for a 2-year term;

     (c)  in the Central Region, one director is elected for a 2-year
term and one director is elected for a 1-year term;

     (d)  in the South Region, one director is elected for a 3-year term
and one director is elected for a 1-year term.

(3)  Despite section 43, at the initial election of directors at large, one
director at large is elected for a 1-year term, one director at large is
elected for a 2-year term and one director at large is elected for a 3-year
term.

(4)  Despite section 43, a term of office of a director of one year or less
is not considered a term of office.


Transitional provisions
60(1)  Despite section 10, on the coming into force of this Regulation,
service charge for marketing and nutrition education under section 10(2)(a)
is

     (a)  $1.03 per hectolitre as of August 1, 2002;

     (b)  $1.11 per hectolitre as of January 1, 2003;

     (c)  $1.19 per hectolitre as of January 1, 2004.

(2)  Despite section 10, on the coming into force of this Regulation,
service charge for research under section 10(2)(b) is $0.02 per hectolitre.

(3)  Despite subsections (1) and (2), a service charge for marketing and
nutrition education and for research may be changed after this plan comes
into force pursuant to section 10(4) and (5).


Review
61   In compliance with the on-going regulatory review initiative, this
Regulation must be reviewed on or before February 28, 2008.


Coming into force
62   This Regulation comes into force on the coming into force of the Dairy
Industry Omnibus Act, 2002.


     SCHEDULE

For the purposes of the Plan, the 4 regions are as follows:

1   Northwest Region:

     (a)  Improvement District No. 12 (Jasper):

     (b)  Improvement District No. 25 (Willmore Wilderness);

     (c)  Yellowhead County;

     (d)  Municipal District of Brazeau No. 77;

     (e)  Woodlands County;

     (f)  Leduc County;

     (g)  County of Thorhild No. 7;

     (h)  County of Athabasca No. 12;

     (i)  County of Barrhead No. 11;

     (j)  Municipal District of Lesser Slave River No. 124;

     (k)  Lac Ste. Anne County;

     (l)  Westlock County;

     (m)  Parkland County;

     (n)  City of Edmonton;

     (o)  Sturgeon County;

     (p)  Lakeland County;

     (q)  Regional Municipality of Wood Buffalo;

     (r)  Improvement District No. 24 (Wood Buffalo);

     (s)  Municipal District of Opportunity No. 17;

     (t)  Municipal District of Greenview No. 16;

     (u)  Birch Hills County;

     (v)  Saddle Hills County;

     (w)  Municipal District of Clear Hills No. 21;

     (x)  Municipal District of Northern Lights No. 22;

     (y)  Municipal District of Mackenzie No. 23;

     (z)  Municipal District of Smoky River No. 130;

     (aa) Municipal District of East Peace No. 131;

     (bb) Municipal District of Spirit river No. 133;

     (cc) Municipal District of Peace No. 135;

     (dd) Municipal District of Fairview No. 136;

     (ee) Municipal District of Big Lakes;

     (ff) County of Grande Prairie No. 1;

     (gg) any urban area that is totally surrounded by one or a
combination of 2 or more of the municipalities referred to in clauses (a)
to (ff).


2   Northeast Region:

     (a)  County of Wetaskiwin No. 10;

     (b)  Ponoka County;

     (c)  County of Camrose No. 22;

     (d)  Beaver County;

     (e)  Lamont County;

     (f)  Smoky Lake County;

     (g)  County of Two Hills No. 21;

     (h)  County of St. Paul No. 19;

     (i)  County of Vermilion River No. 24;

     (j)  County of Minburn No. 27;

     (k)  County of Wainwright No. 61;

     (l)  Flagstaff County;

     (m)  Municipal District of Provost No. 52;

     (n)  Strathcona County;

     (o)  Improvement District No. 13 (Elk Island);

     (p)  Municipal District of Bonnyville No. 87;

     (q)  City of Fort Saskatchewan;

     (r)  any urban area that is totally surrounded by one or a
combination of 2 or more of the municipalities referred to in clauses (a)
to (q).


3   Central Region:

     (a)  that portion of Improvement District No. 9 (Banff) north of
Highway 1;

     (b)  that portion of Municipal District of Bighorn No. 8 north of
Highway 1;

     (c)  Municipal District of Rockyview No. 44;

     (d)  Clearwater County;

     (e)  Red Deer County;

     (f)  Lacombe County;

     (g)  Mountain View County;

     (h)  Kneehill County;

     (i)  Starland County;

     (j)  County of Stettler No. 6;

     (k)  County of Paintearth No. 18;

     (l)  Special Area No. 4;

     (m)  that portion of Wheatland County that lies north of Highway 1
and west of the western edge of Range 22;

     (n)  that portion of Special Area No. 2 that lies north of the
northern boundary of Township 27;

     (o)  that portion of Special Area No. 3 that lies north of the
northern boundary of Township 27;

     (p)  City of Calgary;

     (q)  Town of Drumheller;

     (r)  any urban area that is totally surrounded by one or a
combination of 2 or more of the municipalities referred to in clauses (a)
to (q).


4   South Region:

     (a)  that portion of Improvement District No. 9 (Banff) south of
Highway 1;

     (b)  that portion of Municipal District of Bighorn No. 8 south of
Highway 1;

     (c)  Kananaskis Improvement District;

     (d)  Improvement District No. 4 (Waterton);

     (e)  Municipal District of Foothills No. 31;

     (f)  Municipal District of Ranchland No. 66;

     (g)  Municipal District of Pincher Creek No. 9;

     (h)  Municipality of Crowsnest Pass;

     (i)  Cardston County;

     (j)  Municipal District of Willow Creek No. 26;

     (k)  Municipal District of Taber;

     (l)  Municipal District of Acadia No. 34;

     (m)  County of Newell No. 4;

     (n)  Vulcan County;

     (o)  Cypress County;

     (p)  County of Forty Mile No. 8;

     (q)  County of Warner No. 5;

     (r)  County of Lethbridge;

     (s)  that portion of Wheatland County not included in the Central
Region;

     (t)  that portion of Special Area No. 2 that lies south of the
northern boundary of Township 27;

     (u)  that portion of Special Area No. 3 that lies south of the
northern boundary of Township 27;

     (v)  any urban area that is totally surrounded by one or a
combination of 2 or more of the municipalities referred to in clauses (a)
to (u).


     Alberta Regulation 151/2002

     Marketing of Agricultural Products Act

     ALBERTA MILK MARKETING REGULATION

     Filed:  July 11, 2002

Made by the Lieutenant Governor in Council (O.C. 341/2002) on July 10, 2002
pursuant to sections 26, 27 and 54 of the Marketing of Agricultural
Products Act.


     Table of Contents

     Part 1
     General

Interpretation 1
License required    2
Application for licence  3
Types of licences   4
Licence not transferable 5
Issue, renewal or refusal of licence    6
Suspension or cancellation of licence   7
Processor records to be maintained 8
Container identification 9
Service charge 10
Disposition, appeals     11
Written orders, etc.     12

     Part 2
     Marketing

     Division 1
     Quota

Fluid milk quota    13
Fluid milk quota maintenance adjustment 14
Market share quota  15
Market share quota maintenance adjustment    16
Quota adjustment    17
Quota abeyance 18
Cancellation of quota    19
Quota transfers     20
Appointment of attorney  21
Quota lease    22

     Division 2
     Milk Delivery, Prices

Milk volume    23
Milk delivery  24
Milk transferred to another processor   25
Class priorities    26
Regulated product classification   27
Class prices   28
Pooling   29
Raw milk grades     30
Grade and price adjustment    31
Inhibitors, drug residue ramifications  32

     Division 3
     Reports, Payments

Information to be provided    33
Monthly report 34
Payment to producers     35
Payments  36
Processor payment adjustment  37
Payment statement   38
Adjustments    39

     Division 4
     Variation in Authorized Marketing

Reclassification of contracted export milk   40
Contracted export milk audit  41

     Division 5
     Prohibitions

Purchasing below minimum price     42
Processed milk prohibition    43
Substance removal prohibited  44
Condition prohibition    45
Licence required to market    46
Licence required    47

     Part 3
     Expiry and Coming into Force

Expiry    48
Coming into force   49


     PART 1

     GENERAL

Interpretation
1(1)  In this Regulation,

     (a)  "buttermilk" means fluid milk that contains not less than 8.25%
milk solids-not-fat and to which lactic acid producing bacteria or similar
culture has been added;

     (b)  "chocolate milk" means fluid milk that contains not less than
3.25% and not more than 3.60% of milk fat, and not less than 8.25% milk
solids-not-fat, to which a chocolate flavour has been added;

     (c)  "chocolate partly skimmed 1% milk" means milk that contains not
less than 1.00% and not more than 1.50% milk fat, to which a chocolate
flavour has been added;

     (d)  "chocolate partly skimmed 2% milk" means fluid milk that
contains not less than 2.00% and not more than 2.50% of milk fat, to which
a chocolate flavour has been added;

     (e)  "6% cream" means fluid milk that contains not less than 6.00%
milk fat;

     (f)  "10% cream" means fluid milk that contains not less than 10.00%
milk fat and not more than 10.50% milk fat;

     (g)  "18% cream" means fluid milk that contains not less than 18.00%
milk fat;

     (h)  "dairy plant" means a building where a processor processes a
dairy product, and the land associated with that building;

     (i)  "dairy year" means the 12-month period as designated in the
regulations under the Canadian Dairy Commission Act (Canada);

     (j)  "delivery" occurs when a processor receives, at the dairy
plant, regulated product that cannot be rejected pursuant to this Act or
the Dairy Industry Act;

     (k)  "Director" means Director as defined in the Dairy Industry Act;

     (l)  "eggnog" means fluid milk to which has been added flavouring
ingredients and sweeteners plus emulsifiers or stabilizers;

     (m)  "excess milk" means milk delivered by producers to a
processor's dairy plant that is not classified as sub-class 1a milk and
that is not contracted export milk;

     (n)  "flavoured milk" means standard milk, partly skimmed 2% milk,
partly skimmed 1% milk, skim milk or cream, to which a flavour has been
added;

     (o)  "fluid milk" means any products of milk that are supplied,
processed or marketed in fluid form, other than evaporated or condensed
milk packaged in cans;

     (p)  "fluid milk quota" means the number of litres of milk per day
allotted for fluid milk to a producer by Alberta Milk pursuant to this
Regulation;

     (q)  "heavy cream" means fluid milk that contains 40.00% milk fat or
more and that may have sugar added;

     (r)  "homogenized milk" means fluid milk that has been subjected to
a mechanical treatment that prevents separation of the milk fat;

     (s)  "inhibitor" means inhibitor as defined in the Dairy Industry
Regulation (AR 139/99);

     (t)  "licence" means a licence issued by Alberta Milk under this
Regulation;

     (u)  "market share quota" means the number of kilograms of milk fat
for a dairy year allotted by Alberta Milk pursuant to this Regulation to a
producer as the producer's share of the provincial entitlement;

     (v)  "milk component" means milk fat, protein and other solids or
other components of milk designated by Alberta Milk;

     (w)  "1% partly skimmed milk" means fluid milk that contains not
less than 1.00% and not more than 1.50% of milk fat and not less than 8.25%
milk solids-not-fat;

     (x)  "2% partly skimmed milk" means fluid milk that contains not
less than 2.00% and not more than 2.50% of milk fat and not less than 8.25%
milk solids-not-fat;

     (y)  "processed milk" means milk that is pasteurized, homogenized,
packaged or treated so that its form or composition is altered in any
manner from the form or composition in which it was received from the
producer;

     (z)  "provincial entitlement" means the combination of federal
quota, as defined in the Dairy Products Marketing Regulations under the
Canadian Dairy Commission Act (Canada), that is authorized for Alberta with
respect to a dairy year and quota for intra-provincial trade authorized by
Alberta Milk that is allocated by Alberta Milk to producers to ensure that
the Provincial Market Sharing Quota allocated to Alberta under the
federal-provincial agreement known as the National Milk Marketing Plan is
produced and marketed during that dairy year;

     (aa) "provincial reserve" means an amount of unallocated market
share quota resulting from

               (i)  a producer's going out of business,

               (ii) a producer's delivering less than the maintenance
requirement of the producer's market share quota, or

               (iii)     any other source;

     (bb) "skim milk" means fluid milk that contains not more than 0.10%
of milk fat and not less than 8.50% of milk solids-not-fat;

     (cc) "specialty milk" means processed milk in fluid form, the
composition of which has been altered or to which has been added
flavourings, colour or bacterial culture and, without limiting the
generality of the foregoing, includes buttermilk, eggnog, cordials,
acidophilus milk, kefir, chocolate milk, flavoured milk and concentrated
liquid milk;

     (dd) "standard milk" means fluid milk that contains not less than
3.25% of milk fat and not more than 3.60% of milk fat and not less than
8.25% milk solids-not-fat;

     (ee) "whipping cream" means fluid milk that contains not less than
32.00% of milk fat.

(2)  A reference to a class or sub-class of milk means a class or sub-class
of milk as set out in section 27.

(3)  The words defined in the Alberta Milk Plan Regulation apply to this
Regulation.

(4)  A reference to the Dairy Industry Act includes a reference to the
regulations under that Act.


Licence required
2(1)  A person who is a producer or processor must hold a licence issued by
Alberta Milk.

(2)  A person who holds a licence must comply with the terms or conditions
of the licence.


Application for licence
3   An application for a licence must

     (a)  be made to Alberta Milk on a form satisfactory to Alberta Milk,

     (b)  include a recommendation by the Director,

     (c)  include the approval of any municipality or other person or
agency that Alberta Milk requires, and

     (d)  for producers, be accompanied by a fee of $25.


Types of licences
4(1)  Alberta Milk may issue

     (a)  a producer licence, or

     (b)  a processor licence.

(2)  A producer licence authorizes the licensee to produce regulated
product for delivery to a processor to whom the licensee has been directed
by Alberta Milk to deliver regulated product.

(3)  A processor licence authorizes the licensee

     (a)  to accept regulated product and agricultural product for
processing, as directed by Alberta Milk,

     (b)  to operate a dairy plant, and

     (c)  to market dairy product from that dairy plant.

(4)  A person may hold both a producer licence and a processor licence.


Licence not transferable
5   A licence issued by Alberta Milk is not transferable.


Issue, renewal or refusal of licence
6(1)  If Alberta Milk is satisfied that the applicant meets the
requirements of this Regulation and the requirements of the Dairy Industry
Act, it may issue a licence to an applicant.

(2)  Alberta Milk shall not issue more than one producer licence with
respect to a dairy farm operated as a unit at one location or more than one
processor licence with respect to a dairy plant operated as a unit in one
location.

(3)  Alberta Milk may include conditions in the licence.

(4)  In addition to conditions referred to in subsection (3), the
requirements of the Act, this Regulation, the Dairy Industry Act, the
Alberta Milk Plan Regulation and administrative orders and  directives of
Alberta Milk pursuant to this Regulation are conditions of a licence issued
under this Regulation.

(5)  A licence issued under this Regulation may not apply to more than one
dairy farm or dairy plant.


Suspension or cancellation of licence
7(1)  Licences issued by Alberta Milk continue in effect unless suspended
or cancelled.

(2)  Alberta Milk may suspend or cancel a licence if

     (a)  the Board finds that the licensee has not complied with the
Act, the Alberta Milk Plan Regulation, this Regulation, the Dairy Industry
Act, conditions of the licence or terms of an agreement entered into
pursuant to the Alberta Milk Negotiation and Arbitration Regulation,

     (b)  the suspension or cancellation has been recommended by the
Director, in the case of an alleged contravention of the Dairy Industry
Act,

     (c)  an assessment or fee under the Dairy Industry Act or a levy,
service charge, fee or assessment under the Alberta Milk Plan Regulation
remains unpaid for a period of 30 or more days after it is due,

     (d)  there has been a change

               (i)  in the ownership or location of any dairy farm or
dairy plant in respect of which the licence is issued, or

               (ii) in the address or ownership of the licensee,

     (e)  a producer contravenes section 24(1), or

     (f)  a processor accepts delivery of regulated product from a
producer other than a producer directed to the processor by Alberta Milk.

(3)  If a licence is suspended or cancelled under this section, Alberta
Milk must notify the Director and the person to whom the licence was issued
of that suspension or cancellation.

(4)  If a licence is suspended or cancelled, the person to whom the licence
was issued

     (a)  must, on receiving a notice of the suspension or cancellation,
immediately cease engaging in the activity authorized by the licence, and

     (b)  may apply to Alberta Milk for an order staying the suspension
or cancellation pending the determination of a review or an appeal under
Part 5 of the Act.


Processor records to be maintained
8(1)  A processor must maintain books, records and accounts, including
agricultural product sold and setting out clearly how the processor's
business pursuant to the Alberta Milk Plan Regulation and this Regulation
is carried out.

(2)  A processor must maintain a record of all agricultural product
transferred to any branch of that processor or to any dairy plant.

(3)  A processor must keep at the processor's place of business complete
records of the dairy product sales.

(4)  A processor must make records available on request for reconciliation
and verification audit purposes.

(5)  Any fee for any reconciliation or verification audit under subsection
(4) must be shared equally by the processor and Alberta Milk.

(6)  Each dairy plant must be audited under this section at least once each
dairy year in accordance with the directives and administrative orders of
Alberta Milk.


Container identification
9   A processor must identify, by code on each container, the location of
the dairy plant where each container of dairy product is processed and must
file the code with Alberta Milk.


Service charge
10(1)  A licensed producer must pay service charges for each hectolitre of
raw milk, except farm-separated cream, received within the meaning of
section 30(2).

(2)  The service charges referred to in subsection (1) are the following:

     (a)  for marketing and nutrition education

               (i)  $1.03 for each hectolitre, on the coming into force
of this Regulation;

               (ii) $1.11 for each hectolitre, as of January 1, 2003;

               (iii)     $1.19 for each hectolitre, as of January 1, 2004;

     (b)  for research $0.02 for each hectolitre;

     (c)  for the proper administration of the plan, as set by a
directive or administrative order of Alberta Milk.

(3)  Alberta Milk may require processors to deduct service charges from
producers and remit the amounts to Alberta Milk.

(4)  Alberta Milk may charge interest on late payment of service charges at
the rate of 1% per month.

(5)  Despite subsection (1), producers of contracted export milk must pay
service charges with respect to the contracted export milk only under
subsection (2)(c).

(6)  Despite subsection (1), producers of farm-separated cream must pay
service charges for the administration of the plan, with respect to each
kilogram of milk fat delivered to a processor, as set by a directive or
administrative order of Alberta Milk.

(7)  A service charge and interest on it is a debt due to Alberta Milk and
may be recovered by legal action.


Disposition, appeals
11   An application to Alberta Milk for the disposition of any matter must
be made in writing and must be signed by the person making the application.


Written orders, etc.
12(1)  Any order, directive, permission, authorization or approval of
Alberta Milk required or referred to in this Regulation made with respect
to a particular producer or a particular processor does not have any effect
unless that producer or processor is notified in writing.

(2)  Subsection (1) does not apply to sections 24(1), (2) and (8), 35(1)
and 36.


     PART 2

     MARKETING

     Division 1
     Quota

Fluid milk quota
13(1)  Alberta Milk may set provincial fluid milk quota requirements to
meet market demands.

(2)  When changes occur in the provincial fluid milk market, Alberta Milk
may increase or decrease a fluid milk quota.

(3)  Alberta Milk may allot fluid milk quota to producers.

(4)  A fluid milk quota allotted to a producer by Alberta Milk remains in
effect until it is

     (a)  cancelled under section 19,

     (b)  increased or decreased under this section, or

     (c)  reduced under section 14.


Fluid milk quota maintenance adjustment
14(1)  A licensed producer must deliver no less than 90% of the producer's
fluid milk quota, calculated on a daily basis, during the months of
September, October, November and December.

(2)  Subject to section 18(3), if a licensed producer delivers less than
the amount prescribed in subsection (1), in the January following the
months used to calculate maintenance adjustments, Alberta Milk may reduce
the producer's fluid milk quota by the number of litres per day that the
producer failed to deliver in subsection (1).

(3)  If a producer's milk fluid quota is reduced under subsection (2), the
producer may apply to Alberta Milk to have that quota reinstated.


Market share quota
15(1)  Alberta Milk may allot market share quota from the provincial
entitlement to all producers on a basis as determined by Alberta Milk.

(2)  Alberta Milk may retain a portion of the provincial entitlement of
market share quota in a provincial reserve.

(3)  Alberta Milk may allot all or part of the provincial reserve.

(4)  Nothing in this section requires Alberta Milk to allot any market
share quota if the provincial entitlement would be exceeded.

(5)  When changes occur in the Canadian domestic market, Alberta Milk may,
in accordance with the National Milk Marketing Plan, adjust the market
share quota allotted to each producer.


Market share quota maintenance adjustment
16(1)  A licensed producer must deliver no less than 90% of the producer's
market share quota in accordance with directives and administrative orders
issued by Alberta Milk.

(2)  Subject to section 18(3), if a producer delivers less than the amount
prescribed in subsection (1), Alberta Milk may reduce the producer's market
share quota by the number kilograms of milk fat that the producer failed to
deliver in accordance with subsection (1).

(3)  If a producer's market share quota is reduced under subsection (2), a
producer may apply to Alberta Milk to have that quota reinstated.


Quota adjustment
17   Alberta Milk shall not adjust the quota of any producer because all or
any part of the regulated product received within the meaning of section
30(2) is subsequently rejected by the processor pursuant to the Dairy
Industry Act.


Quota abeyance
18(1)  Despite sections 14 and 16, a producer may apply to Alberta Milk to
hold the producer's quota in abeyance

     (a)  if the producer's herd or production from the herd is affected
by a catastrophe, including but not limited to severe illness or death of
the quota holder, sudden death of a significant part of the producing herd,
destruction of the production facilities, severe infection of an
uncontrollable disease in the dairy herd or a disease for which the health
authorities require that the dairy herd be slaughtered, or

     (b)  for any other reason that is acceptable to Alberta Milk.

(2)  On receipt of an application under subsection (1), Alberta Milk may
hold the producer's quota in abeyance for a period as determined by Alberta
Milk.

(3)  If quota is held in abeyance, sections 14, 16 and 19 do not apply.


Cancellation of quota
19(1)  Subject to section 18(3), Alberta Milk may cancel a quota if

     (a)  the producer's licence is suspended for 2 weeks or more, or
cancelled,

     (b)  the producer does not deliver in accordance with the producer's
fluid milk quota for a period of 2 consecutive weeks or more,

     (c)  the producer does not deliver in accordance with the producer's
market share quota for 2 consecutive months,

     (d)  the producer contravenes the terms and conditions of the
producer's licence, or

     (e)  the producer contravenes the Act, the Alberta Milk Plan
Regulation, this Regulation or the Dairy Industry Act.

(2)  If a producer's quota is cancelled under subsection (1), the producer
may apply to Alberta Milk to have that quota reinstated.


Quota transfers
20(1)  A quota may be transferred only with prior written approval of
Alberta Milk.

(2)  A producer applying to transfer a quota must submit the application to
Alberta Milk on forms supplied by Alberta Milk at least 14 days prior to
the requested transfer date unless the number of days is reduced by a
directive of Alberta Milk.

(3)  A transfer of quota is effective on the first day of a month.

(4)  If a producer transfers all of the market share quota allotted to the
producer to another producer,

     (a)  the unused portion of the market share quota is available to
the transferee for the quota period in which the transfer is approved by
Alberta Milk, and

     (b)  the whole of the acquired market share quota is available to
the transferee in the next quota period,

subject to the delivery requirements in section 16.

(5)  If a producer who has quota reinstated pursuant to section 14, 16 or
19 applies to transfer quota within 2 years from the time of reinstatement,
the amount of quota equal to the amount of reinstated quota is not
available for a transfer and reverts to the provincial reserve.


Appointment of attorney
21(1)  A person who has loaned money to a producer may apply to Alberta
Milk to register an appointment of attorney.

(2)  An appointment of attorney must be in a form satisfactory to Alberta
Milk.

(3)  An appointment of attorney is only effective from the date Alberta
Milk acknowledges in writing that it is registered.

(4)  Only one appointment of attorney may be registered in respect of a
producer.

(5)  Alberta Milk shall not register an appointment of attorney unless it
is signed by the producer that is affected by it.


Quota lease
22(1)  A producer may lease quota for any monthly period within the dairy
year.

(2)  A quota may be leased only with prior written approval of Alberta
Milk.

(3)  A producer applying to lease quota must submit the application to
Alberta Milk at least 14 days prior to the proposed lease date on forms
supplied by Alberta Milk.

(4)  A lease of quota is effective on the first day of a month.

(5)  A producer who holds leased quota is subject to the service charges
for the regulated product deliveries made under the leased quota and
subject to any interest charges for late payment under section 10.


     Division 2
     Milk Delivery, Prices

Milk volume
23(1)  A bulk milk tank must be levelled and calibrated in accordance with
directives and administrative orders of Alberta Milk to ensure accurate
measurement of the volume of milk contained in the bulk milk tank.

(2)  The volume measured in a bulk milk tank calibrated in accordance with
subsection (1) by a bulk milk grader pursuant to the Dairy Industry Act is
the volume on which payment is based.


Milk delivery
24(1)  A producer may only allow transportation of regulated product from
the dairy farm, in accordance with the Dairy Industry Act and with
directives and administrative orders of Alberta Milk.

(2)  The operator of a milk transport vehicle must transport regulated
product from a producer to a processor as required by directives and
administrative orders of Alberta Milk.

(3)  Alberta Milk has no obligation to direct milk be delivered to a
particular processor, and without limiting the generality of the foregoing,
Alberta Milk may decline to direct that milk be delivered to a processor
that is indebted to Alberta Milk.

(4)  The period of time between 2 deliveries of milk from a producer must
be in accordance with the Dairy Industry Regulation (AR 139/99).

(5)  If Alberta Milk is notified by the Director under the Dairy Industry
Act of a change in the period between 2 deliveries of milk referred to in
subsection (4), Alberta Milk must notify the affected processor.

(6)  A processor shall not reject any regulated product that is delivered
in accordance with this Regulation and the Dairy Industry Act by producers
directed to deliver to the processor by Alberta Milk.

(7)  Alberta Milk may set transportation rates and routes.

(8)  A person operating a milk transport vehicle will be paid compensation
in accordance with directives and administrative orders of Alberta Milk.

(9)  This section does not apply to farm-separated cream.


Milk transferred to another processor
25(1)  Subject to subsection (3), and to an agreement entered into pursuant
to the Alberta Milk Negotiation and Arbitration Regulation, Alberta Milk
may direct regulated product to a processor or between processors.

(2)  Payment for milk transferred under subsection (1) must be calculated
and then invoiced or credited to processors in accordance with the
directives and administrative orders of Alberta Milk.

(3)  The directing of regulated product between processors pursuant to
subsection (1) does not apply to contracted export milk.


Class priorities
26(1)  The highest priority of use of milk classified in accordance with
section 27 is given to class 1 and the priority descends to the lowest
class which is class 5, except for sub-class 4m which is lower than class
5.

(2)  The priority of a sub-class of milk is the same as the priority of its
class except for sub-class 3a milk which has a higher priority than
sub-class 3b.

(3)  Subject to sections 24(3) and 25, if a processor requires milk for a
higher priority use, another processor must, at the request of the
processor who requires the milk, redirect milk to that processor in
accordance with any directives and administrative orders of Alberta Milk in
respect of the transfer.

(4)  Subject to an agreement between Alberta Milk and a processor, all
costs related to the transportation of milk under this section are the
responsibility of Alberta Milk.


Regulated product classification
27(1)  Regulated product, other than contracted export milk, is classified
according to how a processor uses it.

(2)  Regulated product, other than contracted export milk, is classified as
follows:

     (a)  class 1 milk, which consists of the following sub-classes of
milk:

               (i)  sub-class 1a, which means milk in liquid form and
includes standard milk, 2% partly skimmed milk, 1% partly skimmed milk,
skim milk, modified enriched milk and kosher milk;

               (ii) sub-class 1b milk, which means cream in liquid form
and includes whipping cream, 18% cream, 10% cream, 6% cream and heavy
cream;

               (iii)     sub-class 1c milk, which means specialty milk;

               (iv) sub-class 1d milk, which means milk in liquid form
that is marketed in the Yukon Territory, the Northwest Territories, Nunavut
or off-shore within the meaning of this section;

     (b)  class 2 milk, which means milk used in the manufacture of sour
cream, yogurt, cultured products, ice cream, frozen yogurt or other frozen
products, meal replacement beverages, soup bases, puddings or infant
formulas;

     (c)  class 3 milk, which consists of the following sub-classes of
milk:

               (i)  sub-class 3a milk, which means milk used in the
manufacture of cottage cheese, fresh curd or any other cheese that is
designated by Alberta Milk as specialty cheese;

               (ii) sub-class 3b milk, which means milk used in the
manufacture of cheddar cheese, light cheddar cheese, kosher cheese, stirred
curd, creamy cheese bases or cheese mixes;

     (d)  class 4 milk, which consists of the following sub-classes of
milk:

               (i)  sub-class 4a milk, which means milk used in the
manufacture of all types of butter, all types of milk powder, casein,
caseinate, condensed milk as an ingredient in the food industry and butter
oil;

               (ii) sub-class 4b milk, which means milk used in the
manufacture of condensed milk and sweetened condensed milk for retail sale;

               (iii)     sub-class 4c milk, which means milk used in the
manufacture of classified products designated by Alberta Milk as new to the
Alberta market;

               (iv) sub-class 4d milk, which means milk

                         (A)  used in the manufacture of processed
animal feed or a new product that has not yet been classified, or

                         (B)  involved in inventory and dairy plant
losses;

               (v)  sub-class 4m milk, which means milk used for sleeve
production, structural surplus and over-quota production, within the
meaning of the National Milk Marketing Plan;

     (e)  class 5 milk, which consists of the following sub-classes of
milk:

               (i)  sub-class 5a milk, which means milk used for the
further processing of cheese products;

               (ii) sub-class 5b milk, which means milk used for the
further processing of non-cheese products;

               (iii)     sub-class 5c milk, which means milk used for
confectionary products;

               (iv) sub-class 5d milk, which means milk used for
processing into products not mentioned in subclause (i), (ii) or (iii).

(3)  For the purposes of this section, dairy products are marketed
off-shore if they are

     (a)  marketed outside Canada,

     (b)  delivered to a bonded warehouse or a ship chandler for
marketing outside Canada, or

     (c)  sold to a foreign registered cruise ship operating in, or a
foreign registered ship normally operating outside, Canadian territorial
waters, other than one owned or operated by the Government of Canada or of
a province, or any of its agencies.

(4)  In this section, "inventory and dairy plant losses" means milk
receiving and processing losses as confirmed by audit, including
extraordinary losses such as transportation or shipping accidents, spillage
prior to processing, processing losses in the production of finished
products, class 1 returns and unaccounted milk losses at the dairy plant up
to 2% of milk delivered to the dairy plant.

(5)  Losses in excess of 2% of dairy plant receipts referred to in
subsection (4) must be prorated to each class and sub-class of milk
processed in the dairy plant.


Class prices
28(1)  Subject to this section, a processor must make payment for all milk
delivered to the processor on behalf of producers at not less than the
prices set out in orders of the Alberta Energy and Utilities Board and
directives and administrative orders of Alberta Milk.

(2)  The price for sub-class 1a milk is the price prescribed by the Alberta
Energy and Utilities Board in accordance with section 5 of the Alberta Milk
Plan Regulation.

(3)  Alberta Milk may set the conversion rates for the purpose of
determining the volume of class 1 milk used to process class 1 dairy
products.

(4)  Alberta Milk may, by directives or administrative orders, set a
minimum price for excess milk

     (a)  on its own initiative, or

     (b)  if requested in writing by an organization of processors or 5%
of the producers.

(5)  Subject to any agreement entered into pursuant to the Alberta Milk
Negotiation and Arbitration Regulation, Alberta Milk may set prices for the
components of milk.

(6)  The price for excess milk is the price set out in a directive or
administrative order of Alberta Milk.

(7)  Alberta Milk must announce prior to the effective date the minimum
price for sub-class 1a milk and excess milk set in accordance with the
Alberta Milk Plan Regulation and this Regulation.

(8)  This section does not apply to contracted export milk.


Pooling
29(1)  Alberta Milk may operate one or more producer payment pools for the
purpose of sharing milk revenue derived from the sale of sub-class 1a milk
and excess milk in Alberta by producers to processors, and may make
directives and administrative orders respecting pricing and payment
mechanisms for the purposes of the pools.

(2)  If milk is rejected pursuant to the Dairy Industry Act, Alberta Milk
must use money collected for grade price adjustments under this Regulation
to

     (a)  pay producers directly on behalf of processors or pay
processors who in turn must pay producers whose milk yielded a negative
inhibitor test result, and

     (b)  pay milk transportation compensation claims in accordance with
directives and administrative orders of Alberta Milk for shipments of milk
rejected at a dairy plant.

(3)  Any money remaining under subsection (2) after making payments under
subsection (2)(a) and (b) must be paid on a monthly basis to a producer
payment pool operated under this section.

(4)  If in a month payments under subsection (2)(a) and (b) are greater
than the money collected that month for grade and price adjustments, the
payments must be made first from that money and the balance of the payments
must be made from the producer payment pool operated under this section.

(5)  Alberta Milk must publish monthly the results of each producer payment
pool showing how payment to producers was determined.

(6)  Alberta Milk may, in conjunction with the producer payment pools
operated by Alberta Milk under this section

     (a)  set out all amounts payable among processors, producers and
Alberta Milk under this Regulation and the Dairy Industry Act, and

     (b)  direct processors to pay the net amounts determined by Alberta
Milk to be owing,

and on such setting out and direction the processors, producers and Alberta
Milk must pay the net amounts so determined and are relieved from payment
of the constituent obligations included in determining the net amounts
owing.

(7)  Except for grade and price, producer payments for contracted export
milk are not made through a producer payment pool.

(8)  Alberta Milk may deduct an amount from the pool for expenses with
respect to the operation of the pool.

(9)  Alberta Milk may deduct service charges and levies from producers,
including but not restricted to inspection costs, transportation, testing
and grading costs and other costs required to ensure the proper operation
of the plan.


Raw milk grades
30(1)  The grade of a producer's milk that is received by a processor must
be determined monthly by testing by an analyst in an approved laboratory.

(2)  For the purposes of this section, milk is received when it is
transferred from a bulk milk tank to a milk transport vehicle.

(3)  For the purpose of determining the grade of a producer's raw milk
other than farm-separated cream, an infraction has occurred each time that
a producer's raw milk other than farm-separated cream

     (a)  does not meet the requirements of Schedule 2, other than
temperatures and somatic cell count, of the Dairy Industry Regulation (AR
139/99), or

     (b)  does not meet the requirements of Schedule 2 of the Dairy
Industry Regulation (AR 139/99) for somatic cell count during the current
month, if the milk exceeded the somatic cell count requirement in each of
the 2 preceding months and no infraction of that requirement was deemed to
have occurred in either of the 2 preceding months.

(4)  A producer's raw milk must be graded with respect to a particular
month as

     (a)  Grade 1 if there is no infraction during that month,

     (b)  Grade 2 is there is one infraction with respect to bacteria
count, freezing point or somatic cell count during the month but there were
no infractions in the preceding 365 days,

     (c)  Grade 3 if

               (i)  there is one infraction with respect to drug
residues during the current month but there were no infractions in the
preceding 365 days, or

               (ii) there were 2 infractions in the preceding 365 days
and at least one of the infractions occurred during the current month,

     (d)  Grade 4 if there were 3 infractions in the 365-day period and
at least one of the infractions occurred during the current month,

     (e)  Grade 5 if there were 4 infractions in the 365-day period and
at least one of the infractions occurred during the current month, or

     (f)  Grade 6 if there were 5 or more infractions in the 365-day
period and at least one of the infractions occurred during the current
month.


Grade and price adjustment
31(1)  The price payable to producers for regulated product must be
adjusted for the month in which an infraction described in section 30
occurs according to the following grade schedule:

     (a)  Grade 1 - 100% of the gross producer returns;

     (b)  Grade 2 - 100% of the gross producer returns with a warning
letter;

     (c)  Grade 3 - 95% of the gross producer returns;

     (d)  Grade 4 - 92.5% of the gross producer returns;

     (e)  Grade 5 - 90% of the gross producer returns;

     (f)  Grade 6 - 85% of the gross producer returns.

(2)  If a producer is subject to a grade and price adjustment under
subsection (1), Alberta Milk must deduct the appropriate adjustment fees
from the gross producer returns and pay the amount deducted to the pool on
or before the 15th day after the end of the month in which the infraction
occurred.

(3)  If a producer of contracted export milk is subject to a grade and
price adjustment under subsection (1), the processor who received the milk
must deduct the appropriate adjustment fees from the gross producer returns
and pay the amount deducted to Alberta Milk on or before the 15 day after
the end of the month in which the infraction occurred.

(4)  If a processor fails to deduct and pay the grade and price adjustment
under subsection (3) to Alberta Milk, the amount of the grade and price
adjustment and any interest is a debt due to Alberta Milk by that processor
and may be recovered by legal action.


Inhibitors, drug residue ramifications
32(1)  A processor that uses any shipment of milk from a producer that is
found, when tested in accordance with the Dairy Industry Regulation (AR
139/99), to contain an inhibitor or a drug residue must pay to Alberta Milk
the gross producer return in respect of that shipment that is withheld from
the producer on or before the 15th day after the end of the month in which
the shipment was delivered.

(2)  If a shipment of milk is rejected by a processor because of a positive
inhibitor or drug residue test conducted in accordance with the Dairy
Industry Regulation (AR 139/99) on a sample taken from the shipment at the
dairy plant, Alberta Milk, on behalf of the processor, may ensure that the
gross producer returns of the producers whose milk in the shipment yielded
negative drug residue tests are not adjusted because of the positive
inhibitor or drug residue test results for the shipment.

(3)  Notwithstanding subsection (2), if none of the producer samples in a
shipment of milk rejected under subsection (2) test positive in an
inhibitor or drug residue test conducted in accordance with the Dairy
Industry Regulation (AR 139/99), the processor is liable to pay producers
for the milk.

(4)  If a processor rejects milk for the presence of inhibitors or drug
residues and the presence of inhibitors or drug residues is confirmed by a
test in an approved laboratory, the processor is not liable to pay the
producers for the milk and the producers whose milk that forms part of the
rejected milk and did not test positive for inhibitors or drug residues
must be paid for that milk pursuant to section 29(2).

(5)  A processor shall not pay a producer in respect of milk that does not
meet the requirements of Schedule 2 of the Dairy Industry Regulation (AR
139/99) with respect to inhibitors and drug residues.


     Division 3
     Reports, Payments

Information to be provided
33(1)  A producer or processor must provide information that Alberta Milk
requires for the purposes of this Regulation in the form and at the times
required by Alberta Milk.

(2)  Alberta Milk must, on or before the 13th day of each month, notify
each processor with respect to regulated product, other than contracted
export milk, delivered in the previous month of

     (a)  the prices for milk and excess milk,

     (b)  the amount of milk in each class, and

     (c)  the totals of the amounts computed under section 37.


Monthly report
34(1)  A processor must, on or before the 8th day of each month furnish
Alberta Milk with a report of the following for the preceding month in a
form satisfactory to Alberta Milk:

     (a)  the total regulated product;

     (b)  the source of the milk;

     (c)  the volume used in each class of milk;

     (d)  the kilograms of components in each class of milk;

     (e)  the volume of any rejected regulated product;

     (f)  the amount and package size of each milk product;

     (g)  the production of special classes of milk;

     (h)  the volume of contracted export milk.

(2)  The report must be accompanied by an itemized invoice for any costs
incurred by the processor in respect of matters referred to in section 25
for the preceding month.


Payment to producers
35(1)  Subject to subsection (2) and any deductions or adjustments
permitted by this Regulation, a processor or Alberta Milk on behalf of
processors, must make payment for all milk delivered to them from a
producer at not less than the prices set out in orders of the Alberta
Energy and Utilities Board and directives and administrative orders of
Alberta Milk.

(2)  Subsection (1) does not apply to contracted export milk.


Payments
36(1)  In managing the pool Alberta Milk may, on behalf of processors, pay
each producer directed to deliver milk to a processor for milk delivered
based on the amount of each class of milk delivered and the price in
accordance with section 28.

(2)  In managing the pool Alberta Milk may, on behalf of processors, pay
each producer for milk delivered the same price for the milk calculated on
the same basis.

(3)  Subject to subsection (7), in managing the pool Alberta Milk may, on
behalf of processors, make an interim or advance payment of at least 50% of
the payment under subsection (1) on or before the first day after the end
of each month to a producer for milk delivered to a dairy plant from the
producer during the previous month.

(4)  Subject to subsection (7), if Alberta Milk is paying producers on
behalf of processors, a processor must make payment to Alberta Milk for
pooling purposes

     (a)  for the first 15 days of milk receipts 4 banking days before
the beginning of each month, and

     (b)  for a final payment on or before the 15th of the month
following receipt of milk.

(5)  Subject to subsection (7), Alberta Milk may, by directive or
administrative order, require a processor to provide security satisfactory
to Alberta Milk.

(6)  Alberta Milk is authorized to take legal action to collect money owing
to producers for regulated product.

(7)  Subsections (3), (4) and (5) are subject to any agreement entered into
pursuant to the Alberta Milk Negotiation and Arbitration Regulation.


Processor payment adjustment
37   Subject to any agreement entered into pursuant to the Alberta Milk
Negotiation and Arbitration Regulation, if a processor is required by
Alberta Milk to pay a producer more or less than the total price obtained
by the processor for the milk marketed by the processor, as calculated
pursuant to directives and administrative orders referred to in section 35,

     (a)  on or before the 15th day after the end of the month during
which the milk was received within the meaning of section 30(2), that
processor must pay to Alberta Milk the amount by which the price obtained
for the milk marketed by the licensee is greater than the amount that the
processor must pay to producers pursuant to sections 28 and 35, and

     (b)  on or before the 17th day after the end of the month during
which the milk was received within the meaning of section 30(2), Alberta
Milk must pay to every processor the amount by which the price obtained for
the milk marketed by the licensee is less than the amount that the
processor must pay to a producer pursuant to sections 28 and 35.


Payment statement
38   A producer's payment statement must include the following:

     (a)  the name of the producer and the producer's Canadian Dairy
Commission registration number;

     (b)  the statement period covered;

     (c)  the number of days in the statement period;

     (d)  the date of receipt of deliveries;

     (e)  the hectolitres in each delivery;

     (f)  the total volume and milk components of milk delivered;

     (g)  the milk fat, protein and other solids test results;

     (h)  the price for milk used for each producer payment pool
established by Alberta Milk under this Regulation;

     (i)  details of all advances and adjustments;

     (j)  deductions under section 29(9).


Adjustments
39   If in the process of verification of receipts or payments of a
processor Alberta Milk discovers any error resulting in money due

     (a)  to Alberta Milk from a processor,

     (b)  to a processor from Alberta Milk, or

     (c)  to a producer from a processor,

Alberta Milk must promptly notify the processor of any amount due, and
payment must be made on or before the next due date for making a payment
into or out of the pool under section 29 as determined pursuant to section
37.


     Division 4
     Variation in Authorized Marketing

Reclassi-fication of contracted export milk
40   If contracted export milk is delivered to a processor who does not
deliver that milk, or an equivalent amount of milk or dairy product made
from that amount of milk for export, that milk or the equivalent amount of
milk is deemed to have been used by the processor as sub-class 1a milk and
the processor must pay to the appropriate pool the price of that milk as
sub-class 1a milk.


Contracted export milk audit
41(1)  For the purposes of ensuring that the requirements of the Alberta
Milk Plan Regulation and this Regulation in respect of contracted export
milk produced in Alberta are complied with, Alberta Milk or a person
authorized by Alberta Milk may, during regular business hours and on
reasonable notice, enter a processor's premises or any premises where a
processor keeps records pertaining to contract export milk in order to
inspect and audit the records.

(2)  Alberta Milk or person carrying out the inspection and audit under
subsection (1) may make copies of the records and may temporarily remove
the records from the premises for that purpose.

(3)  The processor must pay to Alberta Milk for the actual cost of the
inspection and audit under subsection (1) in an amount determined by
Alberta Milk.

(4)  The amount payable by a processor for an inspection and audit under
subsection (1) and any interest is a debt due to Alberta Milk and may be
recovered by legal action.


     Division 5
     Prohibitions

Purchasing below minimum price
42(1)  A processor shall not purchase regulated product for an amount that
is less than the minimum price that is established by Alberta Milk or by
the Alberta Energy and Utilities Board.

(2)  This section does not apply to contracted export milk.


Processed milk prohibition
43   A person shall not market any dairy product or agricultural product
unless it falls within a class or sub-class described in section 27 or it
is contracted export milk.


Substance removal prohibition
44   During or after the production or manufacture of fluid milk, no person
shall, directly or indirectly or through another person, remove any
substance from fluid milk, except milk fat or water.


Condition prohibition
45   A processor shall not demand, accept or offer or agree to accept from
any producer any property, money or security as consideration for or as a
condition of the purchase or agreement to purchase by the processor of any
regulated product of or from the producer.


Licence required to market
46   Subject to the Alberta Milk Plan Regulation, no person shall market

     (a)  regulated product produced in Alberta unless it is produced
under a producer licence, or

     (b)  a dairy product processed in Alberta unless it is processed
under a processor licence.


Licence required
47(1)  No person shall produce regulated product unless the person holds a
producer licence.

(2)  No person shall process regulated product or agricultural product
unless the person holds a processor licence.


     PART 3

     EXPIRY AND COMING INTO FORCE

Expiry
48   For the purpose of ensuring that this Regulation is reviewed for
ongoing relevancy and necessity, with the option that it may be repassed in
its present or an amended form following a review, this Regulation expires
on February 28, 2008.


Coming into force
49   This Regulation comes into force on the coming into force of the Dairy
Industry Omnibus Act, 2002.


     Alberta Regulation 152/2002

     Marketing of Agricultural Products Act

     ALBERTA MILK AUTHORIZATION REGULATION

     Filed:  July 11, 2002

Made by the Lieutenant Governor in Council (O.C. 342/2002) on July 10, 2002
pursuant to sections 26, 27, 28, 33 and 54 of the Marketing of Agricultural
Products Act.


     Table of Contents

Definitions    1
Sections 26, 27 regulations   2
Regulation restrictions  3
Section 33 regulations   4
Expiry    5
Coming into force   6


Definitions
1   Words used in this Regulation that are defined in the Alberta Milk Plan
Regulation have the same meaning as defined in that Regulation.


Sections 26, 27 regulations
2   For the purposes of enabling Alberta Milk to operate the Plan, Alberta
Milk is hereby authorized under sections 26 and 27 of the Act to make
regulations in accordance with the regulation making powers set out in
section 9 of the Alberta Milk Plan Regulation.


Regulation restrictions
3(1)  Despite section 2, Alberta Milk may make regulations with respect to

     (a)  processors only in accordance with section 5(1)(c) of the
Alberta Milk Plan Regulation, and

     (b)  contracted export milk only in accordance with section 5(1)(d)
of the Alberta Milk Plan Regulation.

(2)  Despite section 2, Alberta Milk is not authorized to make regulations
with respect to contracted export milk concerning

     (a)  quota provisions,

     (b)  levies, and

     (c)  service charges described in section 10(2)(a) and (b) of the
Alberta Milk Plan Regulation.

(3)  Despite section 2, Alberta Milk is not authorized to make regulations
under section 9(2)(h) and 9(2)(w) of the Alberta Milk Plan Regulation.


Section 33 regulations
4   For the purposes of enabling Alberta Milk to operate the Plan, Alberta
Milk is hereby authorized under section 33(1)(e) of the Act to make
regulations regulating and controlling agreements entered into by producers
of the regulated product with persons engaged in marketing or processing
the regulated product.


Expiry
5   For the purpose of ensuring that this Regulation is reviewed for
ongoing relevancy and necessity, with the option that it may be repassed in
its present or an amended form following a review, this Regulation expires
on February 28, 2008.


Coming into force
6   This Regulation comes into force on the coming into force of the Dairy
Industry Omnibus Act, 2002.


     ------------------------------

     Alberta Regulation 153/2002

     Marketing of Agricultural Products Act

     ALBERTA MILK NEGOTIATION AND ARBITRATION REGULATION

     Filed:  July 11, 2002

Made by the Lieutenant Governor in Council (O.C. 343/2002) on July 10, 2002
pursuant to sections 33 and 54 of the Marketing of Agricultural Products
Act.


     Table of Contents

Definitions    1

     Part 1
     Negotiations

Negotiating agency  2
Appointment of members   3
Powers of agency    4
Notice to commence negotiations    5
Effecting an agreement   6
Contents of agreement    7

     Part 2
     Arbitration

Referral of matters to arbitration board     8
Information of arbitration board   9
Staff     10
Reasonable dispatch 11
Service of notices  12
Application to arbitration board for directions   13
Directions by arbitration board    14
Determining jurisdiction of arbitration board     15
Conduct of arbitration   16
Hearings and evidence    17
Attendance at hearing    18
Representation 19
Adjournment of hearing   20
Adjournment for failure to attend  21
Evidence  22
Conclusions    23
Determination in writing 24
Incorporation of settlement into determination    25
Settlement terminating arbitration 26
Fees and expenses of arbitration board  27
Removal of member or chair of the arbitration board    28

     Part 3
     Expiry and Coming into Force

Expiry    29
Coming into force   30


Definitions
1(1)  In this Regulation,

     (a)  "Alberta Dairy Council" means the Alberta Dairy Council, a
registered society of milk processors in Alberta;

     (b)  "Alberta Milk" means Alberta Milk, a board established pursuant
to the Act;

     (c)  "arbitration board" means persons appointed as an arbitration
board appointed by the Council under section 8(4);

     (d)  "Council" means the Agricultural Products Marketing Council;

     (e)  "negotiating agency" means the Alberta Milk Negotiating Agency
established under Part 1;

     (f)  "Plan" means the Alberta Milk Plan Regulation.

(2)  Except where otherwise provided in this Regulation, words not defined
in this Regulation but defined in the Plan have the same meaning when used
in this Regulation.

(3)  In this Regulation, "class" or "sub-class" followed by a number is a
reference to the class or sub-class of regulated product with that number
as described in the Alberta Milk Marketing Regulation.


     PART 1

     NEGOTIATIONS

Negotiating agency
2(1)  The Alberta Milk Negotiating Agency is established in accordance with
subsection (2).

(2)  The negotiating agency is composed of not more than 8  members
appointed as follows:

     (a)  not more than 4 directors of Alberta Milk appointed by Alberta
Milk;

     (b)  not more than 4 directors of the Alberta Dairy Council
appointed by the Alberta Dairy Council.

(3)  The members of the negotiating agency appointed under subsection (2)
may by unanimous consent appoint a person on an annual basis to act as
chair of the negotiating agency, who must serve in a non-voting capacity.

(4)  A quorum of the negotiating agency is 3 members appointed under
subsection (2)(a) and 3 members appointed under subsection (2)(b).

(5)  Alberta Milk and the Alberta Dairy Council may have in attendance at
the negotiation proceedings persons who are not members of the negotiating
agency, including legal counsel and persons having special technical or
other knowledge, to advise it on any matter relating to the negotiations,
but those persons may not participate directly in the proceedings.


Appointment of members
3(1)  Prior to the commencement of any negotiations, Alberta Milk and the
Alberta Dairy Council must each appoint the required number of members to
the negotiating agency and notify each other of the appointments.

(2)  An appointment under subsection (1) is for a term of one year and that
member's appointment may be terminated at any time by Alberta Milk or the
Alberta Dairy Council that appointed that member.

(3)  Members may be reappointed.

(4)  Members may be appointed in the case of a vacancy by Alberta Milk or
the Alberta Dairy Council at any time and negotiations would continue
regardless of appointments.


Powers of agency
4   The members of the negotiating agency have the power to adopt or settle
by agreement or to establish by agreement a method to determine the
following:

     (a)  price allocation with respect to the distribution of a price
change relative to components of a class of milk excluding class 1,
sub-class 4m and class 5;

     (b)  milk allocation with respect to policies and procedures on milk
distribution in Alberta;

     (c)  payment policy with respect to timing of payments;

     (d)  producers' security with respect to the security of payments to
producers.


Notice to commence negotiations
5(1)  Subject to the terms of any agreement between Alberta Milk and the
Alberta Dairy Council, either may give the other notice in writing to the
other

     (a)  stating that it wishes to commence negotiations, and

     (b)  setting out the matters it wishes to negotiate.

(2)  Within 10 day of the receipt of a notice under subsection (1), Alberta
Milk or the Alberta Dairy Council receiving the notice must by notice in
writing to the other state

     (a)  whether or not one of the dates proposed to commence
negotiations is suitable to it and if not, alternative dates that are
acceptable, and

     (b)  any additional matters that it wishes to negotiate.


Effecting an agreement
6(1)  Following an exchange of notices under section 5, the negotiating
agency must meet and endeavour to effect an agreement.

(2)  Subject to section 4, the matters that the negotiating agency may
adopt or settle by agreement are

     (a)  those matters wished to be negotiated submitted under section
5, and

     (b)  any other matters to be negotiated subsequently agreed on by
Alberta Milk and the Alberta Dairy Council.

(3)  An agreement concluded by the negotiating agency must be in writing
and signed by each of the members of the agency and by the chair, if any.


Contents of agreement
7   The agreement is deemed to contain the following provisions:

     (a)  if a difference arises as to the interpretation, application,
operation or contravention of this agreement, Alberta Milk and the Alberta
Dairy Council agree to meet and endeavour to resolve the difference;

     (b)  if Alberta Milk and the Alberta Dairy Council are unable to
resolve a difference described in clause (a), or if the difference relates
to whether an item can be the subject of negotiation, either may notify the
other in writing specifying the difference and that it desires to submit
the difference to arbitration;

     (c)  the notice referred to in clause (b) must

               (i)  contain a statement of the difference, and

               (ii) specify a name of a person or a list of names of
persons Alberta Milk or the Alberta Dairy Council is willing to accept as
the single arbitrator;

     (d)  on receipt of a notice referred to in clause (b), the
recipient,

               (i)  if it accepts the person or one of the persons
suggested to act as a single arbitrator, must within 7 days so notify
Alberta Milk or the Alberta Dairy Council and the difference specified in
the notice must be submitted to the arbitrator, or

               (ii) if it does not accept any of the persons suggested
to act as a single arbitrator, must within 7 days so notify Alberta Milk or
the Alberta Dairy Council and send the name or a list of names of persons
it is willing to accept as the single arbitrator;

     (e)  if Alberta Milk or the Alberta Dairy Council are unable to
agree on a person to act as a single arbitrator, either may request the
Council in writing to appoint a single arbitrator;

     (f)  the single arbitrator agreed to, or appointed under clause (a),
may hold hearings or proceed in any other manner that the single arbitrator
considers appropriate during the arbitration;

     (g)  the single arbitrator must inquire into the difference
described in the notice and make a determination in writing;

     (h)  the single arbitrator must not alter or amend the agreement;

     (i)  Alberta Milk and the Alberta Dairy Council must share equally
the expenses of the single arbitrator.


     PART 2

     ARBITRATION

Referral of matters to arbitration board
8(1)  If the members of the negotiating agency unanimously agree to refer
an unconcluded agreement or specific matters in it to arbitration, Alberta
Milk or the Alberta Dairy Council must notify the Council in writing and
then those matters must be referred to an arbitration board in accordance
with this Part.

(2)  If the members of the negotiating agency do not unanimously agree
under subsection (1), either Alberta Milk or the Alberta Dairy Council may
notify the other in writing of its desire to submit the unconcluded
agreement, or specific matters in dispute, to arbitration and, on so
notifying, must notify the Council.

(3)  The notice referred to in this section must

     (a)  contain a statement of the matters proposed for arbitration,
and

     (b)  include a request for the appointment of either a one-person
arbitration board or the appointment of a 3-person arbitration board and,
if a 3-person arbitration board is proposed, Alberta Milk or the Alberta
Dairy Council is to include the name of the person they nominate to the
arbitration board.

(4)  On receipt of a notice under this section, the Council must appoint
persons to an arbitration board as follows:

     (a)  one person, if Alberta Milk and the Alberta Dairy Council agree
to a one-person arbitrator;

     (b)  if either Alberta Milk or the Alberta Dairy Council requests a
3-person arbitration board, the Council must appoint 3 persons, of which
one person is nominated by Alberta Milk, one person is nominated by the
Alberta Dairy Council and the chair is be appointed by the Council.


Information to arbitration board
9   On appointing an arbitration board, the Council must forward to the
arbitration board

     (a)  a copy of the notices received by it from Alberta Milk and the
Alberta Dairy Council, and

     (b)  a copy of this Regulation.


Staff
10   For the purposes of any arbitration under this Regulation, an
arbitration board

     (a)  may be assisted by persons that it considers necessary to carry
out its functions, and

     (b)  may make use of the available administrative services of the
Council.


Reasonable dispatch
11   The arbitration board must conduct hearings and make a determination
on the unconcluded agreement or the specific matters in it as promptly as
reasonably possible.


Service of notices
12(1)  A notice, application, direction or communication in an arbitration
under this Regulation is deemed to have been properly served if sent by
post or electronic means, or delivered by hand, to the usual business
address of the person to be served.

(2)  Notwithstanding subsection (1), if any person to whom a notice,
application, direction or communication has been sent for the purpose of
this Regulation cannot be found or if for any reason service cannot be
readily effected in accordance with this Regulation, the arbitration board
may dispense with service or may grant an order of substitutional service
by a method that the arbitration board considers appropriate.

(3)  If Alberta Milk or the Alberta Dairy Council sends a written notice,
application, objection or communication to the arbitration board, it must
forthwith serve a copy of it on Alberta Milk or the Alberta Dairy Council
and notify the arbitration board that the copy has been served.


Application to arbitration board for directions
13(1)  Alberta Milk or the Alberta Dairy Council may apply in writing to
the arbitration board on any subject relating to matters before the
arbitration board.

(2)  When an applicant makes an application under subsection (1), it must
serve a copy of the application on Alberta Milk or the Alberta Dairy
Council.

(3)  On receipt of a copy of an application under subsection (2), the
recipient may within 7 days make an objection in writing to the arbitration
board.

(4)  On receipt of an application or objection under subsection (3), the
arbitration board may, with or without holding a hearing, give directions
that it considers appropriate.


Directions by arbitration board
14(1)  Any direction from the arbitration board to Alberta Milk or the
Alberta Dairy Council must be in writing or, if given orally, must be
confirmed in writing by the arbitration board within 7 days.

(2)  The written direction must be served on Alberta Milk or the Alberta
Dairy Council in accordance with section 12.


Determining jurisdiction of arbitration board
15(1)  The arbitration board must consider whether the matters proposed for
arbitration could be the subject of an agreement under section 4.

(2)  If the arbitration board concludes that any matters proposed for
arbitration cannot be the subject of an agreement under section 4, the
arbitration board may not deal with those matters.


Conduct of arbitration
16   The arbitration board must, with or without preliminary hearings,
direct Alberta Milk or the Alberta Dairy Council as to how the arbitration
is to be conducted.


Hearings and evidence
17(1)  The arbitration board may hold a hearing in the presence of Alberta
Milk and the Alberta Dairy Council and consider documentary evidence and
arguments that either of them or its representative submits.

(2)  Despite subsection (1), if the arbitration board considers it
appropriate, it may dispense with a hearing and consider written
submissions of Alberta Milk and the Alberta Dairy Council.

(3)  If the arbitration board orders that a hearing be held, it must notify
Alberta Milk or the Alberta Dairy Council in writing of the date, time and
place for the hearing.

(4)  Subject to any adjournments that the arbitration board considers
reasonable, the hearing must be held daily until concluded.


Attendance at hearing
18   The only persons who may be present at a hearing are the arbitration
board, persons assisting it, Alberta Milk and the Alberta Dairy Council
representatives, the witnesses and the officers of the Council, unless the
arbitration board, after consulting with Alberta Milk or the Alberta Dairy
Council, orders otherwise.


Representa-tion
19(1)  Unless otherwise agreed to by Alberta Milk or the Alberta Dairy
Council and approved by the arbitration board, either of them may be
represented at any stage of the proceedings by legal counsel or another
representative, if the notice of the intended representation is given in
writing to the arbitration board and to each other in sufficient time for
each to be able to arrange to be similarly represented.

(2)  If Alberta Milk or the Alberta Dairy Council is represented in
accordance with subsection (1), it

     (a)  must instruct its representative, and 

     (b)  may participate in the proceedings only as a witness.

(3)  The appearance of a person as a representative does not prevent the
person appearing as a witness in the same proceeding.


Adjournment of hearing
20   The arbitration board may adjourn the hearing as it considers
appropriate

     (a)  if Alberta Milk or the Alberta Dairy Council has a
representative, and notice in accordance with section 19(1) has not, in the
opinion of the arbitration board, been sufficient, or

     (b)  for any other reason it considers proper.


Adjournment for failure to attend
21(1)  If Alberta Milk or the Alberta Dairy Council or its representative
fails to attend a hearing, notice of which was served by the arbitration
board, the arbitration board may, on any conditions that it considers
appropriate, adjourn the hearing for not more than 7 days.
  
(2)  Written notice of the date for the adjourned hearing and of the
arbitration board's intention to proceed, ex parte if necessary, must be
served forthwith on Alberta Milk and the Alberta Dairy Council by the
arbitration board.


Evidence
22(1)  Unless otherwise agreed to by Alberta Milk or the Alberta Dairy
Council, the arbitration board must require witnesses to be examined on
oath or affirmation.

(2)  The arbitration board may direct the terms and conditions under which
evidence may be given.


Conclusions
23   The arbitration board is entitled to use its own technical knowledge,
skills and general knowledge in reaching conclusions from its inspections,
considerations and evaluation of the evidence.


Determination in writing
24   The arbitration board must make its determination in writing as soon
as practicable and must notify Alberta Milk or the Alberta Dairy Council of
it.


Incorporation of settlement into determination
25(1)  If Alberta Milk or the Alberta Dairy Council settle an unconcluded
agreement or any specific matter referred to in section 13, they must
notify the arbitration board of the settlement and the arbitration board
must incorporate the settlement into its determination.

(2)  If Alberta Milk or the Alberta Dairy Council's settlement does not
resolve all the matters in dispute, the unresolved matters must be
determined by the arbitration board.


Settlement terminating arbitration
26   If, before the publication of the arbitration board's determination,
Alberta Milk or the Alberta Dairy Council themselves settle the unconcluded
agreement or all the specific matters in dispute, they must immediately
notify the arbitration board in writing and the arbitration board must
accept the notice as terminating the arbitration proceedings.


Fees and expenses of arbitration board
27   Alberta Milk or the Alberta Dairy Council must share equally the fees
and expenses of the arbitration board and of the assistance received
pursuant to section 10(a).


Removal of member or chair of the arbitration board
28(1)  If Alberta Milk or the Alberta Dairy Council applies to the Council
for the removal of a member or the chair of an arbitration board, the
Council, on consideration or any representations either of them may wish to
make, may remove the member or chair from the arbitration board.

(2)  If the person removed under subsection (1) was nominated under section
8(4)(b), the nominator of that person may nominate another person in that
person's place but, if it fails to do so, the Council must do so.

(3)  If the chair is removed under subsection (1), the Council must appoint
a person to that office forthwith.


     PART 3

     EXPIRY AND COMING INTO FORCE

Expiry
29   For the purpose of ensuring that this Regulation is reviewed for
ongoing relevancy and necessity, with the option that it may be repassed in
its present or an amended form following a review, this Regulation expires
on February 28, 2008.


Coming into force
30   This Regulation comes into force on the coming into force of the Dairy
Industry Omnibus Act, 2002.


     Alberta Regulation 154/2002

     Marketing of Agricultural Products Act

     ALBERTA MILK FEDERAL AUTHORIZATION ORDER

     Filed:  July 11, 2002

Made by the Lieutenant Governor in Council (O.C. 344/2002) on July 10, 2002
pursuant to sections 50 and 54 of the Marketing of Agricultural Products
Act.


Definitions
1   In this Order,

     (a)  "Board" means the board known as Alberta Milk;

     (b)  "Canada Act" means

               (i)  the Agricultural Products Marketing Act (Canada);

               (ii) the Canadian Dairy Commission Act (Canada);

     (c)  "Canada Board" means

               (i)  the Canadian Dairy Commission or an agency
established pursuant to the Canadian Dairy Commission Act (Canada);

               (ii) the Governor General in Council;

     (d)  "regulated product" means regulated product as defined in the
Alberta Milk Plan Regulation.


Authorization
2(1)  The Council hereby authorizes the Board to perform all functions and
duties and exercise all powers, imposed or conferred on the Board by or
under a Canada Board or a Canada Act.

(2)  The Council may, with respect to the production and marketing of
regulated product, delegate to a Canada Board any function or duty that the
Council may authorize the Board to do under this Act.

(3)  The Council may, with respect to any function or duty it has
authorized the Board to carry out under the Act or the regulations,
authorize or direct the Board to delegate that function or duty to a Canada
Board.


Repeals
3   The following Orders in Councils are repealed:

     (a)  Order in Council numbered O.C. 666/72;

     (b)  Order in Council numbered O.C. 885/72;

     (c)  Order in Council numbered O.C. 494/72;

     (d)  Order in Council numbered O.C. 458/95.


Coming into force
4   This Order comes into force on the coming into force of the Dairy
Industry Omnibus Act, 2002.