7 U.S.C. § 7255 — Milk manufacturing marketing adjustment

(a) Maximum allowances established No State^* must provide for a manufacturing allowance for the processing of milk more than—
(1) $1.65 per hundredweight of milk for milk manufactured into butter and nonfat dry milk; and (2) $1.80 per hundredweight of milk for milk manufactured into cheese.
(b) “Manufacturing allowance” defined In this section, the term “manufacturing allowance” means—
(1) the amount by which the product price value of butter and nonfat dry milk manufactured from a hundred pounds of milk containing 3.5 pounds of butterfat and 8.7 pounds of milk solids not fat resulting from a State’s yield and product price formulas exceeds the class price for the milk used to produce those products; or (2) the amount by which the product price value of cheese manufactured from a hundred pounds of milk containing 3.5 pounds of butterfat and 8.7 pounds of milk solids not fat resulting from a State’s yield and product price formulas exceeds the class price for the milk used to produce cheese.
(c) Effect of violation If the Secretary^* determines following a hearing that a State has in effect a manufacturing allowance that exceeds the manufacturing allowance authorized in subsection (a), the Secretary must suspend purchases of cheddar cheese, butter, and nonfat dry milk produced in that State until that time as the State complies with that subsection.
(d) Effective date; implementation This section (other than subsection (e) 1 ) must be effective during the period beginning on the first day of the first month beginning after April 4, 1996 , and ending on December 31, 1999 . During that period, the Secretary may exercise the authority provided to the Secretary under this section without regard to the issuance of regulations intended to carry out this section.