October 20, 2005, Introduced by Reps. Stahl, Emmons, Sheltrown, Mayes, Hoogendyk, Nitz, Baxter, Hummel and Drolet and referred to the Committee on Agriculture.
A bill to amend 2000 PA 316, entitled
"Michigan organic products act,"
by amending sections 7, 11, 13, 21, 22, 23, 25, 27, and 29 (MCL
286.907, 286.911, 286.913, 286.921, 286.922, 286.923, 286.925,
286.927, and 286.929).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7. As used in this act:
(a) "Michigan organic standards" means those organic
production
and handling standards defined by this act , rules
adopted
under this act, or both, that are
designed to combine
organic production or handling practices and an audit trail that
will ensure the integrity of organic products from the producer to
the consumer.
(b) "Organic" means a labeling term referring to an
agricultural product produced in accordance with the standards
described
in this act. , rules adopted under this act, or both.
(c) "Organic advisory committee" means the committee created
under section 25.
(d) "Organic agriculture" means an agricultural management
system that enhances biodiversity, biological cycles, and soil
biological activity to produce healthy plants and animals and
fosters human and environmental health. Organic agriculture does
not include the use of synthetic chemicals, genetically modified
organisms, sewage sludge, and ionizing radiation, or any
combination of those substances.
(e) "Organic plan" means a plan of management of an organic
production or handling operation that has been agreed to by the
producer or handler and the certifying agent and that includes
written plans concerning all aspects of agricultural production and
handling
as described in this act. , rules adopted under this act,
or
both.
(f) "Organic product" means agricultural products including,
but not limited to, crops, livestock, livestock products, or other
agricultural products that are produced organically for human or
livestock use or consumption. Organic products does not include
personal care products.
(g) "Person" means an individual, group of individuals,
contractor, corporation, limited liability company, partnership,
joint venture, cooperative, community supported agricultural
entity, or any other legal entity.
(h) "Processing" means processes that include, but are not
limited to, cooking, baking, heating, drying, mixing, grinding,
churning, separating, extracting, cutting, fermenting,
eviscerating, preserving, dehydrating, freezing, or other
manufacturing process and includes the packaging, canning, jarring,
or otherwise enclosing of food in a container.
(i) "Producer" means a person who engages in the business of
growing or producing agricultural products.
(j) "Prohibited substance" means a substance whose use in any
aspect of organic production or handling is prohibited or not
provided
for under this act. , rules adopted under this act, or
both.
Sec. 11. (1) The department may engage in or conduct
activities to regulate, promote, and assist the organic industry in
the manner provided by law. The department has the authority to
enter into reciprocity agreements with other states' departments of
agriculture and the United States department of agriculture and may
require certain conditions and records be met and maintained by
certifying agents. The department may work with the organic
advisory committee and national and state recognized certification
groups
and programs in formulating its policies , rules, and
requirements.
(2) A person shall not sell, offer for sale, or represent an
agricultural product to be an organic product unless the
agricultural product has been certified. The organic product must
be certified by a registered certifying agent.
(3) A person shall not certify an agricultural product as an
organic product unless that person is registered with the
department as a certifying agent.
(4) A handler that sells, offers for sale, or represents an
agricultural product to be an organic product must register with
the department.
Sec. 13. (1) The following persons must be certified by a
certifying agent registered by the department in order to engage in
the production, sale, or handling of organic products:
(a) A producer who sells, intends to sell, or represents that
he or she is engaged in the business of selling to the public.
(b) A handler.
(c) A handling operation except as otherwise provided in this
section.
(2) Handling operations, including wholesalers and retailers,
that do not process, produce, package, or relabel organic products
under their own name or for private label, or make organic claims
about their operations or label their operation or a particular
part of their operation as organic, are not required to be
certified or registered.
(3) A handling operation not required to be certified must
demonstrate to the satisfaction of the director that it strictly
complies with all of the following:
(a) Implements measures necessary for the prevention of
commingling organic and nonorganic products.
(b) Implements measures necessary to protect organic products
from coming into contact with prohibited substances.
(c) Maintains records sufficient to prove that organic
products
are certified and registered as required by this act. ,
rules
adopted under this act, or both.
(d) Verifies quantities of organic products in a manner
acceptable to the director.
(e) Maintains records sufficient to verify compliance with
this act and permits access to those records by the director for
inspection and copying during normal business hours in order to
determine compliance with this act.
(f) Clearly labels, posts, or maintains original organic
certification information or identification of the organic product
it handles.
(4) Retail food establishments advertising as organic,
labeling as organic, or making organic claims about a final
product, their operation, or a particular part of their operation
are required to be certified or registered.
(5) Retail food establishments not advertising as organic, not
labeling as organic, or not making organic claims about any of the
following are not subject to this act:
(a) Their final product.
(b) An ingredient.
(c) Their operation.
(d) A particular part of their operation.
(6) Retail food establishments not required to be certified or
registered may offer agricultural products for sale that contain
organic and nonorganic components and may use a phrase such as
"made with certified organic (specified ingredients)" if those
organic components were certified in accordance with this act and
the requirements in subsection (3)(b) through (f) are met.
Sec.
21. (1) By promulgation of rules pursuant to the
administrative
procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328,
the director shall adopt standards that meet or exceed the
standards
for organic products of the United States department of
agriculture
agricultural marketing service, or equivalent national
organic
program. The standards shall include a list of prohibited
substances.
In no case shall this act, the standards, or both,
permit
the use of synthetic chemicals, genetically modified
organisms,
sewage sludge, ionizing radiation, or any combination of
those
substances. The director shall consult with the organic
advisory
committee regarding the development of and changes to the
Michigan
organic standards. The director may adopt additional
standards
that he or she determines necessary, including, but not
limited
to, protecting the waters of this state, the state natural
resources,
or the integrity of organic agriculture.
(2)
Until the effective date of rules adopted under subsection
(1),
the The international standards of the organic crop
improvement association international, as revised February 1999,
and the certification standards of the organic growers of Michigan,
as revised March 7, 2000 and adopted May 28, 2000, are adopted by
reference
as interim standards. The
director may adopt any other
standards
he or she determines substantially equivalent upon 10
days'
notification of such determination on the department internet
website,
or other form of notice considered appropriate by the
director
and designed to inform the industry and general public.
Sec. 22. (1) The department may enter into a reciprocity
agreement with a state or country that has an organic program that
has been determined by the director to be substantially equivalent.
This includes, but is not limited to, certification standards for
organic producers or handlers or products, licensure, or other
state regulation of certifying agents.
(2) In a state or country that the director has determined to
have no organic program including, but not limited to,
certification standards for organic producers or handlers or
products, licensure, or other regulation of certifying agents, the
director may enter into a reciprocity agreement with private
certifying organizations upon demonstration to the director's
satisfaction that their program, including certification standards,
meets
or exceeds those established under this act. , rules adopted
under
this act, or both.
Sec. 23. (1) All labeling and advertisement of organic
products shall comply with the requirements contained in this act.
and
rules adopted under this act.
(2) The director shall consider as mislabeled an organic
product meeting any of the following circumstances:
(a) Is false or misleading in any particular, taking into
account representations made or suggested by statement, work,
design, device, sound, or any combination of statement, work,
design, or sound, or any other means as determined by the director.
(b) In the case of a product that originated or was produced
in Michigan, does not meet the Michigan organic standards or is not
certified by a Michigan registered certifying agent, or both.
(c) In the case of a product that is brought into this state,
has not been certified organic.
Sec. 25. (1) There is created an organic advisory committee
within the department. The committee shall advise the director on
the
implementation of this act and the promulgation of rules and
may do all of the following:
(a) Assist the director in developing the Michigan organic
standards and recommend appropriate equivalent interim standards.
(b) Annually review and recommend changes in the Michigan
organic standards, if necessary.
(c)
Review and recommend to the director
rules and policies
governing the business of organic production and handling by study
and evaluation of organic production issues.
(d) Annually conduct or cause to be conducted a comprehensive
review of the organic product registration and certifying agent
registration programs and advise and recommend to the director any
necessary changes to the programs.
(e) Formulate and recommend to the director actions and
policies to promote organic products.
(2) The organic advisory committee shall consist of 11 voting
members appointed by the director for 4-year terms. The voting
membership shall include 4 producers of organic food, 4 individuals
who are either retail food establishments, processors, or input
suppliers of organic food or organic fiber, and 3 members of the
general public who are consumers of organic products and are not
associated with the commercial production or handling of organic
food or organic fiber. Of the initial membership, 4 members shall
be appointed for a term of 4 years, 3 for a term of 3 years, 2 for
a term of 2 years, and 2 for a term of 1 year. The department may
allow a representative of the United States department of
agriculture natural resources conservation service, the Michigan
state university cooperative extension service or the agricultural
experiment station, the director, and a member of a recognized
environmental organization to serve as ex officio nonvoting
members.
(3) Members shall receive reimbursement for travel in the
amount provided for in the department of management and budget
regulations.
(4) The members, at the first meeting and annually thereafter,
shall elect officers and adopt rules of procedure. Terms of
officers are 1 year. A majority of the members are a quorum and an
act performed by a majority of the quorum is considered an official
act of the committee.
(5) The committee shall meet at the call of the chair, at the
request of a majority of its members, at the request of the
department, or at such times as may be prescribed by its procedural
rules. The proceedings of the committee are subject to the open
meetings act, 1976 PA 267, MCL 15.261 to 15.275. Any records,
except those that may be used to identify an individual's financial
status or proprietary information, are subject to the freedom of
information act, 1976 PA 442, MCL 15.231 to 15.246.
Sec. 27. (1) The director, in administering and enforcing this
act, shall investigate complaints and initiate and conduct
investigations of alleged violations of this act. The director may
deny an application for or suspend or revoke registration of a
certifying agent or a handler or take other action or utilize other
penalties or remedies as are available under this section.
(2)
The director may promulgate rules under the administrative
procedures
act of 1969, 1969 PA 306, MCL 24.201 to 24.328, to
enforce
and implement this act.
(2) (3)
The director may deny an application for or suspend
or revoke a registration issued for a certifying agent or a handler
under this act for any of the following:
(a) Submission of an application or verification documents
that contain insufficient information upon which the department can
make an appropriate determination.
(b) Submission of or providing verification documents that
demonstrate noncompliance with any provision of this act.
(c) Engaging in fraudulent or deceptive practices or as
evasion or attempt at evasion of this act or standards and
procedures established pursuant to this act.
(d) Making a false representation.
(e) Violating or refusing to comply with this act or an order
of the director.
(f) Having had registration revoked, suspended, or denied
under this act within the preceding 5 years.
(3) (4)
The director may seize and take possession of an
organic or agricultural product not in compliance with this act. An
organic or agricultural product not in compliance with this act is
subject to seizure upon a complaint filed in a court of competent
jurisdiction in the county where the product is located. If the
court determines the product to be in violation and orders the
condemnation of the product, it shall be denatured, destroyed,
relabeled, or otherwise disposed of in compliance with the law. The
court shall not order the disposition of the product without giving
the claimant an opportunity to apply to the court for the release
of the product or permission to relabel the product in compliance
with this act.
(4) (5)
This act does not require the director to revoke or
suspend a registration, report for prosecution, institute seizure
or proceedings, issue an order for withdrawal from distribution, or
take other administrative action as a result of a minor violation
of this act when the director determines that the public interest
is best served by suitable notice of warning in writing.
(5) (6)
The director may apply for temporary or permanent
injunctive relief, without bond, to restrain a person from
violating
or continuing to violate this act
or a rule adopted
under
this act notwithstanding the existence of other remedies at
law.
(6) (7)
The director shall have free access at all
reasonable hours to any establishment or operation, including a
vehicle used to transport or hold agricultural or organic products,
for the purpose of inspecting the establishment, operation, or
vehicle to determine if this act has been violated. The director
may secure samples or specimens of any agricultural or organic
product, after paying or offering to pay for such samples or
specimens, to determine if this act is being violated. The director
may examine any records of the establishment, operation, or
certifying agent to obtain necessary and pertinent information.
(7) (8)
The director may issue and enforce a written printed
stop sale order to the owner or custodian or any organic or
agricultural product the director determines is in violation of
this
act. or rule adopted under this act. The
order shall
prohibit the further sale, processing, or movement of the product
except upon the approval of the director and until the director has
evidence of compliance with the law and has issued a release from
the stop sale order. The owner or custodian of the agricultural
product may request a hearing under the administrative procedures
act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
Sec. 29. (1) Upon finding that a person subject to this act
violated
a provision of this act, or rule promulgated under this
act,
the department may impose an administrative fine of
not more
than $500.00 for the first offense and not more than $1,000.00 for
a second or subsequent offense and the actual costs of the
investigation of the violation.
(2) Except as otherwise provided for under this act, a person
subject
to this act who violates any provision of this act or
rules
promulgated under this act is guilty of a misdemeanor
punishable by a fine of not less than $250.00 or more than
$2,500.00 or by imprisonment for not more than 90 days, or both.
(3) In defense of an action filed under this act and in
addition to any other unlawful defense, a person may present
evidence as an affirmative defense that, at the time of the alleged
violation,
he or she was in compliance with this act. and rules
promulgated
under this act.
(4) Notwithstanding the other provisions of this act, a person
who
knowingly violates section 23(2) and section 27(3)(c)
27(2)(c) is guilty of a felony punishable by imprisonment for not
more than 4 years or by a fine of not more than $10,000.00 plus
twice the amount of any economic benefit associated with the
violation, or both.