SENATE BILL NO. 394

INTRODUCED BY J. TESTER

A BILL FOR AN ACT ENTITLED: "AN ACT REQUIRING THE DEPARTMENT OF AGRICULTURE TO PREPARE A PLAN FOR THE ESTABLISHMENT OF A STATE ORGANIC CERTIFICATION PROGRAM, IN CONFORMITY WITH APPLICABLE FEDERAL LAW; REQUIRING THAT WHEN THE PLAN IS DEVELOPED IT MUST BE SUBMITTED BY THE GOVERNOR TO THE U.S. SECRETARY OF AGRICULTURE FOR APPROVAL; PROVIDING THAT WHEN A STATE PLAN IS APPROVED BY THE U.S. SECRETARY OF AGRICULTURE, THE STATE ORGANIC CERTIFICATION PROGRAM MUST BE IMPLEMENTED IN MONTANA UPON THE REQUEST OF A PERCENTAGE OF ORGANIC PRODUCERS, PROCESSORS, AND HANDLERS; REQUIRING THAT THE PROGRAM BE ADMINISTERED BY THE DEPARTMENT OF AGRICULTURE ACCORDING TO RULES ADOPTED BY THE DEPARTMENT WITH ADVICE FROM AN ORGANIC COMMODITY ADVISORY COUNCIL; ESTABLISHING AN ACCOUNT; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE."

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

NEW SECTION. Section 1. Plan for establishment of state organic certification program -- submission by governor to U.S. secretary of agriculture -- administration by department. (1) The department shall develop a plan for a state organic certification program for producers and handlers of agricultural products that have been produced using organic methods. The plan must be developed in conformity with the requirements of the Organic Foods Production Act of 1990, 7 U.S.C. 6501, et seq. The state program must be designed to ensure that a product that is sold or labeled as organically produced is produced and handled using organic methods. The state organic certification program may contain requirements that are more restrictive than those contained in the federal act for the organic certification of farms and handling operations and the production and handling of agricultural products that are to be sold or labeled as organically produced.

(2) Once the plan is developed, the governor, as the governing state official, shall submit the plan for a Montana state organic certification program to the U.S. secretary of agriculture for approval.

(3) If the state program is approved by the U.S. secretary of agriculture, 20% or more of certified organic producers, processors, and handlers in Montana may petition the department for implementation of the Montana state organic certification program.

(4) Upon receipt and verification of the petition, the department shall implement the program. Implementation must include the establishment of an organic commodity advisory council. The council must be composed of the director of the department and certified Montana organic producers, processors, and handlers, a majority of which must be organic producers, to advise the department regarding:

(a) the adoption of administrative rules to implement the organic certification program;

(b) appropriate research and market development programs for certified organic products;

(c) assessments on certified organic products payable by certified organic producers, processors, and handlers, when approved by a majority of those producers, processors, and handlers, in an amount sufficient to fund the state organic certification program without negative fiscal impact on the state budget;

(d) assessment collection and enforcement procedures;

(e) appropriate penalty and enforcement provisions applicable to the state organic certification program;

(f) the awarding of research and marketing contracts; and

(g) any other issues the advisory council considers necessary for proper administration of the state organic certification program.

NEW SECTION. Section 2. Account established -- sources -- use -- expenditures. (1) There is an account in the state special revenue fund. The following must be placed in the account:

(a) the proceeds from all gifts, grants, or donations to the department for development and administration of the state organic certification plan and program authorized under [section 1];

(b) proceeds of assessments, penalties, and other money collected pursuant to a state organic certification program when implemented pursuant to [section 1].

(2) The account must be maintained for the purposes of [section 1] and must be separate from all other accounts of the department.

(3) The department may direct the board of investments to invest funds from the account pursuant to the provisions of the unified investment program for state funds. The income from those investments must be credited to the account established in this section.

NEW SECTION. Section 3. Codification instruction. [Sections 1 and 2] are intended to be codified as an integral part of Title 80, chapter 11, and the provisions of Title 80, chapter 11, apply to [sections 1 and 2].

NEW SECTION. Section 4. Effective date. [This act] is effective on passage and approval.

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