302 KAR 40:010. Certification of organic production, processing, or handling operations.

 

      RELATES TO: KRS 260.020, 260.030, 7 C.F.R. 205

      STATUTORY AUTHORITY: KRS 260.020(3), 260.030(1)(k), 7 C.F.R. 205

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 260.030(1)(k) requires the Department of Agriculture to establish an Organic Agricultural Product Certification Program. This administrative regulation establishes the procedures for certification of organically-produced foods.

 

      Section 1. All producers, processors, and handlers of organic agricultural products shall comply with the requirements of 7 C.F.R. 205.

 

      Section 2. Certification. (1) A producer, processor, or handler seeking to receive or maintain organic certification shall submit a completed application including the organic certification program fee schedule, organic product profile, and organic certification withdrawal notification.

      (2) A certified inspector shall complete a field inspection report of the organic production entity and the applicant shall be present during the inspection. Upon receipt of a field inspection report, the department shall make a determination of certification and notify the applicant in writing of its decision.

      (3) The department shall conduct an annual inspection of every certified organic entity.

      (4) Except as provided by subsection 6 of this section and Section 3, a producer shall pay a certification fee of $125 for certification and each year thereafter when renewed. Except as provided by subsection 6 of this section and Section 3 of this administrative regulation, processors and handlers shall pay a certification fee of $125 plus $100 for each $100,000 of gross receipts for each organic product.

      (5) Nonresident organic producers, processors, and handlers may be certified in Kentucky if they meet the following requirements:

      (a) The organic products are sold, processed, or handled in Kentucky;

      (b) The producers, processors, or handlers' state of residence does not have an organic certification program; and

      (c) The producers shall pay a certification fee of $250. Processors and handlers shall pay a certification fee of $250 plus $100 for each $100,000 of gross receipts for each organic product. In addition to the certification fee established for nonresident producers, processors, and handlers, the department shall be reimbursed for all expenses incurred as a result of the certification procedure.

      (6) Any production, processing, or handling operation with gross agricultural income from organic sales of less than $5,000 annually shall register with the department and pay an annual fee of twenty-five (25) dollars.

 

      Section 3. Nonprofit, Educational, and Charitable Organization. (1) If nonprofit, educational, and charitable organizations, as defined by the Internal Revenue Code, 26 U.S.C. 501(c)(3), have at least $5,000 gross sales of organic products, they shall be certified and pay the required fees in accordance with Section 2 of this administrative regulation.

      (2) If nonprofit, educational, and charitable organizations, as defined by the Internal Revenue Code, 26 U.S.C. 501(c)(3), have less than $5,000 gross sales of organic products, they shall be registered for production, processing, or handling organic products except they shall not be required to pay a fee.

 

      Section 4. Nonresident Certifiers. (1) Kentucky producers, processors, and handlers of organic products may be certified by nonresident certifiers if the certifiers are registered with the Kentucky Department of Agriculture. Registration shall require the following:

      (a) Name of the certifier;

      (b) Address of certifier;

      (c) Name and address of the entity to be certified; and

      (d) Documentation that the certifier is certified pursuant to National Organic Program requirements, 7 U.S.C. 6501-6522 and 7 C.F.R. 205.

      (2) Nonresident certifiers shall not initiate the certification process until they have registered and submitted all required information.

 

      Section 5. The department shall devise and distribute a label in conformance with 7 C.F.R. 205.303. Producers, processors, and handlers shall be certified by the department prior to using the label. The cost of the label shall be included in the certification fee. Certified producers, processors, and handlers shall be provided a roll of 400 labels or an ink slick that may be reproduced.

 

      Section 6. Certification Review and Standards Advisory Committee. (1) The Certification Review and Standards Advisory Committee shall consist of seven (7) members, including consumers, advocates, handlers, or processors of organic products and at least three (3) farmers who produce organic products.

      (2) The committee shall be appointed by the commissioner and serve a term of two (2) years. Members may be reappointed to additional two (2) year terms.

      (3) The committee shall determine policy regarding organic production, processing, and handling.

      (4) Members shall receive reimbursement for mileage only for meetings of the full committee.

 

      Section 7. Federal Regulations Adopted Without Change. The following federal regulations govern the subject matter of this administrative regulation and are hereby adopted without change. The federal regulations are available for inspection and copying, during normal business hours of 8 a.m. to 4:30 p.m., eastern time, excluding state holidays, at the Office of Agricultural Marketing and Product Promotion, 100 Fair Oaks, Frankfort, Kentucky, or may be purchased from the U.S. Superintendent of Documents, Washington, D.C.: 7 C.F.R. 205, "National Organic Program, January 1, 2001".

 

      Section 8. Incorporation by Reference. (1) The following material is incorporated by reference:

      (a) "Organic Farm/Crop Certification Application (June 2003)";

      (b) "Organic Process/Handling Plan Application (July 2003)";

      (c) "Organic Livestock Plan Application (July 2003)";

      (d) "Organic Certification Program Fee Schedule" (November 2003);

      (e) "Organic Product Profile" (November 2003); and

      (f) "Organic Certification Withdrawal Notification" (November 2003).

      (2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Kentucky Department of Agriculture, Office of Agricultural Marketing and Product Promotion, 100 Fair Oaks, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m. The material is also available on the department Web site at www.kyagr.com. (16 Ky.R. 2069; eff. 5-31-90; Am. 23 Ky.R. 3885; 24 Ky.R. 1062; eff. 11-12-97; 29 Ky.R. 523; 930; eff. 10-9-2002; 30 Ky.R. 697; 1507; eff. 1-5-04.)