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7 C.F.R. §§ 205.661–205.663

3 sections in range

§205.661. Investigation.

7 C.F.R. § 205.661

(a)
A certifying agent may investigate complaints of noncompliance with the Act or regulations of this part concerning production and handling operations certified as organic by the certifying agent. A certifying agent must notify the Program Manager of all compliance proceedings and actions taken pursuant to this part.
(b)
A State organic program's governing State official may investigate complaints of noncompliance with the Act or regulations in this part concerning organic production or handling operations operating in the State.
Notes, amendments, and revision history

Authority

Authority: 7 U.S.C. 6501-6524.

Source

Source: 65 FR 80637, Dec. 21, 2000, unless otherwise noted.

§205.662. Noncompliance procedure for certified operations.

7 C.F.R. § 205.662

(a)
Notification. When an inspection, review, or investigation of a certified operation by a certifying agent or a State organic program's governing State official reveals any noncompliance with the Act or regulations in this part, a written notification of noncompliance shall be sent to the certified operation. Such notification shall provide:
(1)
A description of each noncompliance;
(2)
The facts upon which the notification of noncompliance is based; and
(3)
The date by which the certified operation must rebut or correct each noncompliance and submit supporting documentation of each such correction when correction is possible.
(b)
Resolution. When a certified operation demonstrates that each noncompliance has been resolved, the certifying agent or the State organic program's governing State official, as applicable, shall send the certified operation a written notification of noncompliance resolution.
(c)
Proposed suspension or revocation. When rebuttal is unsuccessful or correction of the noncompliance is not completed within the prescribed time period, the certifying agent or State organic program's governing State official shall send the certified operation a written notification of proposed suspension or revocation of certification of the entire operation or a portion of the operation, as applicable to the noncompliance. When correction of a noncompliance is not possible, the notification of noncompliance and the proposed suspension or revocation of certification may be combined in one notification. The notification of proposed suspension or revocation of certification shall state:
(1)
The reasons for the proposed suspension or revocation;
(2)
The proposed effective date of such suspension or revocation;
(3)
The impact of a suspension or revocation on future eligibility for certification; and
(4)
The right to request mediation pursuant to § 205.663 or to file an appeal pursuant to § 205.681.
(d)
Willful violations. Notwithstanding paragraph (a) of this section, if a certifying agent or State organic program's governing State official has reason to believe that a certified operation has willfully violated the Act or regulations in this part, the certifying agent or State organic program's governing State official shall send the certified operation a notification of proposed suspension or revocation of certification of the entire operation or a portion of the operation, as applicable to the noncompliance.
(e)
Suspension or revocation.
(1)
If the certified operation fails to correct the noncompliance, to resolve the issue through rebuttal or mediation, or to file an appeal of the proposed suspension or revocation of certification, the certifying agent or State organic program's governing State official shall send the certified operation a written notification of suspension or revocation.
(2)
A certifying agent or State organic program's governing State official must not send a notification of suspension or revocation to a certified operation that has requested mediation pursuant to § 205.663 or filed an appeal pursuant to § 205.681, while final resolution of either is pending.
(3)
Within 3 business days of issuing a notification of suspension or revocation, or the effective date of an operation's surrender, the certifying agent must update the operation's status in the Organic Integrity Database.
(f)
Eligibility.
(1)
A certified operation or a person responsibly connected with an operation whose certification has been suspended may at any time, unless otherwise stated in the notification of suspension, submit a request to the Secretary for reinstatement of its certification, or submit a request for eligibility to be certified. The request must be accompanied by evidence demonstrating correction of each noncompliance and corrective actions taken to comply with and remain in compliance with the Act and the regulations in this part.
(2)
A certified operation or a person responsibly connected with an operation whose certification has been revoked will be ineligible to receive certification for a period of 5 years following the date of such revocation, Except, That, the Secretary may, when in the best interest of the certification program, reduce or eliminate the period of ineligibility.
(g)
Violations of Act. In addition to suspension or revocation, any certified operation that:
(1)
Knowingly sells or labels a product as organic, except in accordance with the Act, shall be subject to a civil penalty of not more than the amount specified in 7 CFR 3.91(b)(1)(xxxvi) per violation.
(2)
Makes a false statement under the Act to the Secretary, a State organic program's governing State official, or a certifying agent shall be subject to the provisions of section 1001 of title 18, United States Code.
Notes, amendments, and revision history

Amendments

[65 FR 80637, Dec. 21, 2000, as amended at 75 FR 17560, Apr. 7, 2010; 79 FR 6430, Feb. 5, 2015; 88 FR 3626, Jan. 19, 2023]

Authority

Authority: 7 U.S.C. 6501-6524.

Source

Source: 65 FR 80637, Dec. 21, 2000, unless otherwise noted.

Amendments

[65 FR 80637, Dec. 21, 2000, as amended at 75 FR 17560, Apr. 7, 2010; 79 FR 6430, Feb. 5, 2015; 88 FR 3626, Jan. 19, 2023]

§205.663. Mediation.

7 C.F.R. § 205.663

(a)
A certifying agent must submit with its administrative policies and procedures: decision criteria for acceptance of mediation, and a process for identifying personnel conducting mediation and setting up mediation sessions per § 205.504(b)(8).
(b)
A certified operation or applicant for certification may request mediation to resolve a denial of certification or proposed suspension or proposed revocation of certification issued by a certifying agent or State organic program.
(1)
A certified operation or applicant for certification must submit any request for mediation in writing to the applicable certifying agent or State organic program within 30 calendar days of receipt of the notice of proposed suspension or proposed revocation of certification or denial of certification.
(2)
A certifying agent or State organic program may accept or reject a request for mediation based on the decision criteria required in paragraph (a) of this section. Certifying agents must document these criteria and how the certifying agent applied the criteria to the request.
(3)
If a certifying agent rejects a mediation request, it must provide this rejection, and the justification for the rejection, in writing to the applicant for certification or certified operation. The rejection must include the right to request an appeal, pursuant to § 205.681, within 30 calendar days of the date of receipt of the written notification of rejection of the request for mediation.
(4)
When an operation appeals a rejection of mediation, the adverse action which is contested must not be finalized during the appeal proceeding.
(c)
Both parties must agree on the person conducting the mediation.
(d)
If a State organic program is in effect, the parties must follow the mediation procedures established in the State organic program and approved by the Secretary.
(e)
The parties to the mediation have a maximum of 30 calendar days from the start of mediation to reach an agreement. Successful mediation results in a settlement agreement agreed to in writing by both the certifying agent and the certified operation. If mediation is unsuccessful, the applicant for certification or certified operation has 30 calendar days from receipt of a written notice of termination of mediation to appeal the denial of certification or proposed suspension or revocation pursuant to § 205.681.
(f)
Any settlement agreement reached through mediation must comply with the Act and the regulations in this part. The Program Manager may review any mediated settlement agreement for conformity to the Act and the regulations in this part and may reject any agreement or provision not in conformance with the Act or the regulations in this part.
(g)
The Program Manager may propose mediation and enter into a settlement agreement at any time to resolve any adverse action notice.
Notes, amendments, and revision history

Amendments

[88 FR 3626, Jan. 19, 2023]

Authority

Authority: 7 U.S.C. 6501-6524.

Source

Source: 65 FR 80637, Dec. 21, 2000, unless otherwise noted.

Amendments

[88 FR 3626, Jan. 19, 2023]