116 
(2) all expenditures made by the Secretary 
under subsection (b) during the preceding fiscal 
year; and 
(3) the impact of the stabilization program on 
dairy markets. 
(e) ENFORCEMENT.—If a participating dairy oper-
ation or handler fails to remit or collect the amounts by 
which payments to participating dairy operations are re-
duced under section 1434, the participating dairy oper-
ation or handler responsible for the failure shall be liable 
to the Secretary for the amount that should have been 
remitted or collected, plus interest. In addition to the en-
forcement authorities available under section 1437, the 
Secretary may enforce this subsection in the courts of the 
United States. 
SEC. 1436. SUSPENSION OF REDUCED PAYMENT REQUIRE-
MENT. 
(a) DETERMINATION OF PRICES.—For purposes of 
this section: 
(1) The price in the United States for cheddar 
cheese and nonfat dry milk shall be determined by 
the Secretary. 
(2) The world price of cheddar cheese and skim 
milk powder shall be determined by the Secretary. 
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117 
(b) SUSPENSION THRESHOLDS.—The stabilization 
program shall be suspended or the Secretary shall refrain 
from making the announcement under section 1432(a) if 
the Secretary determines that— 
(1) the actual dairy production margin is great-
er than $6.00 per hundredweight of milk for 2 con-
secutive months; 
(2) the actual dairy production margin is equal 
to or less than $6.00 (but greater than $5.00) for 
2 consecutive months, and during the same 2 con-
secutive months— 
(A) the price in the United States for 
cheddar cheese is equal to or greater than the 
world price of cheddar cheese; or 
(B) the price in the United States for non-
fat dry milk is equal to or greater than the 
world price of skim milk powder; 
(3) the actual dairy production margin is equal 
to or less than $5.00 (but greater than $4.00) for 
2 consecutive months, and during the same 2 con-
secutive months— 
(A) the price in the United States for 
cheddar cheese is more than 5 percent above 
the world price of cheddar cheese; or 
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118 
(B) the price in the United States for non-
fat dry milk is more than 5 percent above the 
world price of skim milk powder; or 
(4) the actual dairy production margin is equal 
to or less than $4.00 for 2 consecutive months, and 
during the same 2 consecutive months— 
(A) the price in the United States for 
cheddar cheese is more than 7 percent above 
the world price of cheddar cheese; or 
(B) the price in the United States for non-
fat dry milk is more than 7 percent above the 
world price of skim milk powder. 
(c) IMPLEMENTATION BY HANDLERS.—Effective on 
the day after the date of the announcement by the Sec-
retary under subsection (b) of the suspension of the sta-
bilization program, the handler shall cease reducing pay-
ments to participating dairy operations under the sta-
bilization program. 
(d) CONDITION ON RESUMPTION OF STABILIZATION 
PROGRAM.—Upon the announcement by the Secretary 
under subsection (b) that the stabilization program has 
been suspended, the stabilization program may not be im-
plemented again until, at the earliest— 
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119 
(1) 2 months have passed, beginning on the 
first day of the month immediately following the an-
nouncement by the Secretary; and 
(2) the conditions of section 1432(a) are again 
met. 
SEC. 1437. ENFORCEMENT. 
(a) UNLAWFUL ACT.—It shall be unlawful and a vio-
lation of the this subpart for any person subject to the 
stabilization program to willfully fail or refuse to provide, 
or delay the timely reporting of, accurate information and 
remittance of funds to the Secretary in accordance with 
this subpart. 
(b) ORDER.—After providing notice and opportunity 
for a hearing to an affected person, the Secretary may 
issue an order against any person to cease and desist from 
continuing any violation of this subpart. 
(c) APPEAL.—An order of the Secretary under sub-
section (b) shall be final and conclusive unless an affected 
person files an appeal of the order of the Secretary in 
United States district court not later than 30 days after 
the date of the issuance of the order. A finding of the 
Secretary in the order shall be set aside only if the finding 
is not supported by substantial evidence. 
(d) NONCOMPLIANCE WITH ORDER.—If a person 
subject to this subpart fails to obey an order issued under 
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subsection (b) after the order has become final and 
unappealable, or after the appropriate United States dis-
trict court has entered a final judgment in favor of the 
Secretary, the United States may apply to the appropriate 
United States district court for enforcement of the order. 
If the court determines that the order was lawfully made 
and duly served and that the person violated the order, 
the court shall enforce the order. 
SEC. 1438. AUDIT REQUIREMENTS. 
(a) AUDITS OF DAIRY OPERATION AND HANDLER 
COMPLIANCE.— 
(1) AUDITS
AUTHORIZED.—If determined by 
the Secretary to be necessary to ensure compliance 
by participating dairy operations and handlers with 
the stabilization program, the Secretary may con-
duct periodic audits of participating dairy operations 
and handlers. 
(2) SAMPLE
OF
DAIRY
OPERATIONS.—Any 
audit conducted under this subsection shall include, 
at a minimum, investigation of a statistically valid 
and random sample of participating dairy oper-
ations. 
(b) SUBMISSION OF RESULTS.—The Secretary shall 
submit the results of any audit conducted under sub-
section (a) to the Committee on Agriculture of the House 
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