II

105TH CONGRESS

1ST SESSION S. 1500

To amend the Hawaii Tropical Forest Recovery Act to establish voluntary

standards for certifying forest products cultivated, harvested, and processed in tropical environments in Hawaii and to grant a certification

for Hawaii tropical forest products that meet the voluntary standards,

and for other purposes.

IN THE SENATE OF THE UNITED STATES

NOVEMBER 9, 1997

Mr. AKAKA introduced the following bill; which was read twice and referred

to the Committee on Agriculture, Nutrition, and Forestry

A BILL

To amend the Hawaii Tropical Forest Recovery Act to establish voluntary standards for certifying forest products

cultivated, harvested, and processed in tropical environments in Hawaii and to grant a certification for Hawaii

tropical forest products that meet the voluntary standards, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Hawaii Tropical Forest

5 Products Certification Act’’.
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1 SEC. 2. HAWAII TROPICAL FOREST PRODUCTS CERTIFI2 CATION.

3 The Hawaii Tropical Forest Recovery Act (Public

4 Law 102–574; 106 Stat. 4593) is amended by inserting

5 after section 4 the following:

6 ‘‘TITLE II—HAWAII TROPICAL

7 FOREST PRODUCTS CERTIFI8 CATION

9 ‘‘SEC. 201. PURPOSES.

10 ‘‘The purposes of this title are—

11 ‘‘(1) to establish voluntary standards for cer12 tifying forest products cultivated, harvested, and

13 processed in tropical environments in Hawaii; and

14 ‘‘(2) to grant a certification for Hawaii tropical

15 forest products that meet the voluntary standards.

16 ‘‘SEC. 202. DEFINITIONS.

17 ‘‘In this title:

18 ‘‘(1) AFFILIATED PERSON.—The term ‘affili19 ated person’ means, with respect to a person—

20 ‘‘(A) the spouse of the person, minor child

21 of the person, or guardian of the minor child of

22 the person, except that a spouse who establishes

23 to the satisfaction of a certifying agent that op24 erations of the person and spouse are main25 tained separately and independently shall not be

26 considered an affiliated person; and
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1 ‘‘(B) a partnership, joint venture, or other

2 enterprise in which the person or any other per3 son described in subparagraph (A) has an own4 ership interest or financial interest, unless the

5 certifying agent determines that the interest is

6 a minor interest held by another business enter7 prise.

8 ‘‘(2) BIOLOGICAL DIVERSITY.—The term ‘bio9 logical diversity’ means variability among living or10 ganisms and the ecological complexes that the orga11 nisms inhabit, including diversity within a species,

12 between species, and of ecosystems.

13 ‘‘(3) COVERED PERSON.—The term ‘covered

14 person’ means a producer, processor, owner, har15 vester, or handler of a forest product cultivated in

16 a tropical environment in Hawaii.

17 ‘‘(4) CULTIVATE.—The term ‘cultivate’ means

18 to prepare and work on land in order to produce a

19 forest product.

20 ‘‘(5) FOREST PRODUCT.—The term ‘forest

21 product’ means a tree or other plant harvested to

22 produce a marketable product.

23 ‘‘(6) GOVERNOR.—The term ‘Governor’ means

24 the Governor of the State of Hawaii, a designee of
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1 the Governor, or an agency designated by the Gov2 ernor.

3 ‘‘(7) HARVEST.—The term ‘harvest’ means the

4 removal, in whole or in part, of a forest product

5 from the location where the product was cultivated.

6 ‘‘(8) LABEL.—The term ‘label’ means the dis7 play of written, printed, or graphic matter on or at8 tached to a forest product.

9 ‘‘(9) PROCESS.—The term ‘process’ means to

10 use a process or method to modify or convert a for11 est product into a marketable product.

12 ‘‘(10) PROCESSOR.—The term ‘processor’

13 means any person engaged in the business of proc14 essing a forest product.

15 ‘‘(11) PRODUCER.—The term ‘producer’ means

16 an owner, operator, landlord, tenant, or share17 cropper who shares in the risk of producing a forest

18 product and who is entitled to share in the forest

19 product available for marketing, or would have

20 shared had the forest product been produced.

21 ‘‘(12) PROPRIETARY BUSINESS INFORMA22 TION.—The term ‘proprietary business information’

23 means information that relates to a trade secret,

24 process, operation, or commercial or financial infor25 mation the disclosure of which is likely to have the
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1 effect of causing substantial harm to the competitive

2 position of the person from whom the information

3 was obtained.

4 ‘‘(13) SECRETARY.—The term ‘Secretary’

5 means the Secretary of Agriculture.

6 ‘‘(14) SELL.—The term ‘sell’ includes any sale,

7 exchange, contract to sell, consignment for sale,

8 shipment for sale, or other disposition.

9 ‘‘(15) STEWARDSHIP.—The term ‘stewardship’

10 means managing land and forest products in a man11 ner that meets the needs of the present without com12 promising the ability of future generations to meet

13 their needs.

14 ‘‘(16) TROPICAL.—The term ‘tropical’ includes

15 subtropical.

16 ‘‘SEC. 203. TROPICAL FOREST PRODUCTS CERTIFICATION

17 PROGRAM.

18 ‘‘(a) IN GENERAL.—Subject to subsection (b), the

19 Secretary shall establish a certification program for cov20 ered persons that cultivate, harvest, or process forest

21 products in a tropical environment in Hawaii using the

22 forestry practices identified in section 204.

23 ‘‘(b) STATE PROGRAM.—In lieu of establishing a cer24 tification program under subsection (a), the Secretary

25 shall permit the State of Hawaii to carry out a State tropi-
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1 cal forest products certification program that is consistent

2 with this title.

3 ‘‘(c) CONSULTATION.—In carrying out the program

4 established under subsection (a), the Secretary shall con5 sult with—

6 ‘‘(1) the Governor;

7 ‘‘(2) persons in Hawaii involved in the cultiva8 tion, harvesting, processing, and stewardship of

9 tropical forests and forest products; and

10 ‘‘(3) other interested parties.

11 ‘‘(d) CERTIFYING AGENTS.—

12 ‘‘(1) IN GENERAL.—The Secretary and, if ap13 plicable, the Governor shall carry out the program

14 established under this title through certifying agents

15 described in section 212.

16 ‘‘(2) DUTIES.—A certifying agent shall deter17 mine whether a covered person that cultivates, har18 vests, or processes a forest product cultivated in a

19 tropical environment in Hawaii, or an operation of

20 the person, meets the requirements of this title (in21 cluding, if applicable, a certification program of the

22 State of Hawaii).
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1 ‘‘SEC. 204. VOLUNTARY STANDARDS FOR TROPICAL FOR2 ESTRY IN HAWAII.

3 ‘‘(a) IN GENERAL.—To be sold or labeled as a Ha4 waii tropical forest product cultivated, harvested, or proc5 essed using practices established under this title, a covered

6 person shall—

7 ‘‘(1) comply with—

8 ‘‘(A) Federal, State, and local environ9 mental laws (including regulations); and

10 ‘‘(B) international treaties and agreements

11 to which the United States is a signatory;

12 ‘‘(2) conduct forestry operations based on a

13 written management plan that meets the standards

14 established under this title and under which—

15 ‘‘(A) the long-term forestry management

16 objectives, and the means for achieving the ob17 jectives, are clearly stated;

18 ‘‘(B) the rationale for species selection, the

19 method of harvest, and a rate of harvest that

20 can be permanently sustained, are detailed; and

21 ‘‘(C) the results of monitoring new sci22 entific and technical information and changing

23 environmental, social, and economic cir24 cumstances are used to update the management

25 plan;
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1 ‘‘(3) implement forest management practices

2 that—

3 ‘‘(A) encourage the maximum efficient use

4 of multiple forest products;

5 ‘‘(B) promote the long-term social and eco6 nomic well-being of local communities; and

7 ‘‘(C) ensure that the rate of harvest of

8 each forest product does not exceed a level that

9 can be permanently sustained;

10 ‘‘(4) maintain—

11 ‘‘(A) biological diversity and the ecological

12 functions and integrity of the forest; and

13 ‘‘(B) except in the case of plantation for14 estry, the natural species mix, age classes, and

15 structure of the forest unless modifications are

16 required for the purposes of natural forest res17 toration;

18 ‘‘(5) conserve primary forests, mature second19 ary forests, and sites of major environmental signifi20 cance;

21 ‘‘(6) promote the regeneration, succession, and

22 diversity of native species;

23 ‘‘(7) protect rare, threatened, and endangered

24 species and their habitats, and establish adequate
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1 conservation zones and protected areas where nec2 essary;

3 ‘‘(8) control fire and erosion, observe best man4 agement practices to protect watersheds and water

5 resources, and minimize forest damage during har6 vesting, road construction, and other types of me7 chanical disturbance;

8 ‘‘(9) minimize the use of alien species and, if an

9 alien species is used, carefully control and actively

10 monitor the use of the species to avoid an adverse

11 ecological impact;

12 ‘‘(10) in coordination with governmental au13 thorities, landowners, and persons involved in the

14 stewardship of tropical forests and forest products,

15 implement practices that eradicate, control, or mini16 mize the spread of alien species;

17 ‘‘(11) institute practices that maximize the use

18 of nonchemical methods of pest and weed manage19 ment and avoid methods of chemical control;

20 ‘‘(12) recognize and protect sites of special cul21 tural or religious significance to native Hawaiians;

22 ‘‘(13) conduct environmental assessments and,

23 based on the assessments, institute environmental

24 safeguards to ensure that the standards established

25 under this title are achieved;
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1 ‘‘(14) in coordination with governmental au2 thorities, landowners, and persons involved in the

3 stewardship of tropical forests and forest products,

4 establish a program to monitor key indicators of for5 est health to assess the condition of the forest eco6 system, the yields of forest products, and the envi7 ronmental and social impact of management activi8 ties;

9 ‘‘(15) maintain sufficient documentation or

10 product identification to enable certifying agents, the

11 Secretary and, if applicable, the Governor to track

12 forest products from their origin to the point of sale

13 by a covered person;

14 ‘‘(16) maintain investments necessary for long15 term ecological productivity of forests;

16 ‘‘(17) demonstrate an enduring commitment to

17 adhere to the standards established under this title;

18 ‘‘(18) independently or in conjunction with

19 other forest managers, governmental agencies, or

20 persons involved in the stewardship of tropical for21 ests and forest products, conduct education activities

22 to increase public awareness of the importance of

23 sustainable use of forest resources;

24 ‘‘(19) in the case of a forest plantation—
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1 ‘‘(A) complement the management of, re2 duce pressures on, and promote the restoration

3 and conservation of natural forests; and

4 ‘‘(B) employ species diversity to enhance

5 economic and ecological vitality; and

6 ‘‘(20) comply with such other terms and condi7 tions as the Secretary may require.

8 ‘‘(b) ALLOWABLE VARIANCES.—Notwithstanding any

9 other provision of this title, no person or operation shall

10 be determined to be ineligible for a certification under this

11 title on the basis of a variance that—

12 ‘‘(1) is technical and minor in nature and has

13 little effect on the ability of the person or operation

14 to meet the standards established by subsection (a);

15 or

16 ‘‘(2) is conducted in accordance with a tem17 porary waiver (granted by the Secretary or, if appli18 cable, the Governor) from the practices required

19 under subsection (a) that cannot reasonably be ac20 complished as a result of weather, a pest, or a dis21 ease.

22 ‘‘SEC. 205. COMPLIANCE.

23 ‘‘(a) SPECIFIC TROPICAL FOREST PRODUCT OF A

24 PERSON.—Beginning 1 year after the later of the date of

25 issuance of final regulations to carry out this title or publi-
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1 cation of a notice in the Federal Register of the Sec2 retary’s approval of a State tropical forest products certifi3 cation program under section 207, a person may sell or

4 label a product as a Hawaii tropical forest product that

5 meets the standards established under this title only if the

6 product is cultivated, harvested, and processed in accord7 ance with this title.

8 ‘‘(b) ALL TROPICAL FOREST PRODUCTS OF A PER9 SON.—Beginning 5 years after first receiving a certifi10 cation under section 203 or 207, no person may affix a

11 label to, or provide other market information concerning,

12 a Hawaii tropical forest product if the label or information

13 implies, directly or indirectly, that the product meets all

14 or part of the standards established under this title for

15 cultivating, harvesting, or processing unless all tropical

16 forest products cultivated, harvested, or processed on all

17 land owned, leased, or managed by the person and any

18 affiliated person have been certified under section 203 or

19 207.

20 ‘‘(c) LANDLORDS AND TENANTS.—The ineligibility of

21 a tenant, or operation of a tenant, shall not cause a land22 lord, or operation of the landlord, to be ineligible to receive

23 a certification under this title other than for the product

24 with respect to which the tenant has an interest.
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1 ‘‘(d) STANDARDS AND SEAL.—If a forest product

2 meets the standards established under this title, a label

3 affixed to, or other market information provided for, the

4 product in accordance with this section may—

5 ‘‘(1) indicate that the forest product meets the

6 standards; and

7 ‘‘(2) on approval by the Secretary, incorporate

8 seals that indicate that the forest product meets the

9 standards.

10 ‘‘SEC. 206. GENERAL REQUIREMENTS.

11 ‘‘A program established under this title shall—

12 ‘‘(1) provide that an agricultural product to be

13 sold or labeled as a Hawaii tropical forest product

14 that meets the standards established under this title

15 must—

16 ‘‘(A) be produced only on lands using prac17 tices that meet the standards established by

18 section 204; and

19 ‘‘(B) be produced and processed in accord20 ance with the program;

21 ‘‘(2) require that a covered person that desires

22 to participate in the program establish a forestry

23 plan that meets the standards established by section

24 204;
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1 ‘‘(3) provide for procedures that allow a covered

2 person to appeal an adverse administrative deter3 mination under this title;

4 ‘‘(4) require each certified covered person to at5 test to the Secretary, the Governor (if applicable),

6 and the certifying agent on an annual basis, that the

7 covered person has not cultivated, harvested, or

8 processed a tropical forest product except in accord9 ance with this title;

10 ‘‘(5) provide for on-site inspection not less often

11 than annually by the certifying agent of each for12 estry and processing operation that is owned, oper13 ated, or carried out by a covered person that has

14 been certified under this title;

15 ‘‘(6) provide for appropriate and adequate en16 forcement procedures determined by the Secretary to

17 be necessary and consistent with this title;

18 ‘‘(7) provide that the Secretary or, if applicable,

19 the Governor be notified prior to a landowner or

20 processor commencing an action that may be incon21 sistent with this title;

22 ‘‘(8) prevent conflicts of interest described in

23 section 212(h);

24 ‘‘(9) provide for public access in the State of

25 Hawaii to certification documents except to the ex-
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1 tent that the documents contain proprietary business

2 information;

3 ‘‘(10) provide for the collection of reasonable

4 fees from covered persons and certifying agents who

5 participate in the program; and

6 ‘‘(11) contain such other terms and conditions

7 as may be determined by the Secretary to be nec8 essary.

9 ‘‘SEC. 207. STATE TROPICAL FOREST PRODUCTS CERTIFI10 CATION PROGRAM.

11 ‘‘(a) IN GENERAL.—

12 ‘‘(1) SUBMISSION OF PLAN.—The Governor

13 may prepare and submit to the Secretary for ap14 proval a plan that establishes a State tropical forest

15 products certification program.

16 ‘‘(2) APPROVAL.—To be approved by the Sec17 retary, the program must meet the requirements of

18 this title.

19 ‘‘(b) ADDITIONAL REQUIREMENTS.—

20 ‘‘(1) IN GENERAL.—Subject to paragraph (2), a

21 program established under subsection (a) may con22 tain more restrictive requirements governing the cer23 tification of covered persons, or operations of the

24 persons, under this title than are specified in this

25 title or in the program established by the Secretary.
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1 ‘‘(2) CONTENT.—Any additional requirements

2 established under paragraph (1) shall—

3 ‘‘(A) further the purposes of this title;

4 ‘‘(B) be consistent with this title; and

5 ‘‘(C) not become effective until approved

6 by the Secretary.

7 ‘‘(c) APPROVAL.—

8 ‘‘(1) PLAN REVIEW AND APPROVAL.—

9 ‘‘(A) REVIEW.—The Secretary shall review

10 a plan submitted under subsection (a).

11 ‘‘(B) APPROVAL.—The Secretary shall ap12 prove the plan if the plan meets the require13 ments of this title.

14 ‘‘(2) PERIODIC REVIEW.—The Secretary shall—

15 ‘‘(A) review a program approved under this

16 section not less often than once during each 5-

17 year period following the date of the approval of

18 the program; and

19 ‘‘(B) recommend to the State of Hawaii

20 such program modifications as the Secretary

21 considers appropriate.

22 ‘‘(3) NOTICE.—When conducting a periodic re23 view under paragraph (2)(A), the Secretary shall

24 publish a notice in the Federal Register that de25 scribes the scope of review and provides 90 days for
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1 the public to comment on the periodic review and

2 tropical forest certification program.

3 ‘‘(4) CHANGES.—

4 ‘‘(A) NOTIFICATION OF SECRETARY.—

5 Prior to implementing a substantive change to

6 a program approved under this section, the

7 Governor shall notify the Secretary of the

8 change.

9 ‘‘(B) REVIEW.—After notifying the Sec10 retary of the change, the Governor—

11 ‘‘(i) shall allow a reasonable period of

12 time (of not less than 120 days) before im13 plementing the change; and

14 ‘‘(ii) shall not implement the change if

15 the Secretary disapproves the change dur16 ing the period.

17 ‘‘(5) TIME FOR REVIEW.—

18 ‘‘(A) IN GENERAL.—The Secretary shall

19 make a determination concerning a proposed

20 program described in subsection (a), or a pro21 posed change to the program, not later than

22 180 days after receipt of the program or

23 change.

24 ‘‘(B) CONSTRUCTIVE APPROVAL.—The

25 Secretary shall be deemed to have approved the
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1 program or change unless the Secretary dis2 approves the program or change not later than

3 180 days after receipt of the program or

4 change.

5 ‘‘(6) NOTICE.—The Secretary shall publish a

6 notice in the Federal Register of a final action taken

7 on the program or change.

8 ‘‘SEC. 208. PROHIBITED PRACTICES.

9 ‘‘For a covered person or an operation of the covered

10 person to be certified under this title, the covered person

11 shall not engage in a practice that is inconsistent with the

12 applicable certification program established under this

13 title.

14 ‘‘SEC. 209. OTHER PRODUCTION AND PROCESSING PRAC15 TICES.

16 ‘‘If a production or processing practice is not prohib17 ited or otherwise restricted under this title, the practice

18 shall be permitted unless the Secretary or, if applicable,

19 the Governor determines that the practice would be incon20 sistent with the certification program.

21 ‘‘SEC. 210. FORESTRY PLANS.

22 ‘‘(a) SUBMISSION OF PLAN.—A covered person seek23 ing certification under this title shall submit the plan re24 quired under section 204(a)(2) to—

25 ‘‘(1) the certifying agent; and
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1 ‘‘(2) if a State tropical forest products certifi2 cation program is in effect, the Governor.

3 ‘‘(b) REVIEW.—The certifying agent and, if applica4 ble, the Governor shall review the plan and determine

5 whether the plan meets the requirements of this title.

6 ‘‘SEC. 211. ACCREDITATION PROGRAM.

7 ‘‘(a) IN GENERAL.—Subject to subsection (b), the

8 Secretary shall establish and carry out a program to ac9 credit officers or employees of the State of Hawaii or other

10 persons that meet the requirements of this section as cer11 tifying agents for the purpose of certifying covered persons

12 or operations of the persons under this title.

13 ‘‘(b) STATE PROGRAM.—The Secretary shall permit

14 the State of Hawaii to carry out a State program to ac15 credit certifying agents in a manner that is consistent with

16 this title.

17 ‘‘(c) REQUIREMENTS.—To be accredited as a certify18 ing agent under this section, the officer, employee, or

19 other person shall—

20 ‘‘(1) prepare and submit, to the Secretary or, if

21 applicable, the Governor, an application for the ac22 creditation;

23 ‘‘(2) have sufficient expertise in the tropical for24 estry cultivation, harvesting, or processing practices
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1 described in section 204, as determined by the Sec2 retary; and

3 ‘‘(3) comply with this section, section 212, and

4 such other requirements as the Secretary or, if ap5 plicable, the Governor may establish.

6 ‘‘(d) DURATION.—An accreditation made under this

7 section—

8 ‘‘(1) shall be for a period of not to exceed 5

9 years; and

10 ‘‘(2) may be renewed.

11 ‘‘(e) ACCREDITATION REPORT.—When accrediting a

12 certifying agent, the Secretary or, if applicable, the Gov13 ernor shall prepare an accreditation report identifying the

14 basis for determining that the agent meets the standards

15 established under this title.

16 ‘‘SEC. 212. REQUIREMENTS OF CERTIFYING AGENTS.

17 ‘‘(a) ABILITY TO IMPLEMENT REQUIREMENTS.—To

18 be accredited as a certifying agent under section 211, an

19 officer or employee of the State of Hawaii or other person

20 shall be able to fully implement the applicable certification

21 program established under this title.

22 ‘‘(b) RECORDKEEPING.—

23 ‘‘(1) MAINTENANCE.—A certifying agent shall

24 maintain all records concerning the activities of the
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1 agent under this title for a period of not less than

2 10 years.

3 ‘‘(2) ACCESS.—A certifying agent shall allow

4 representatives of the Secretary and the State of

5 Hawaii access to each record concerning an activity

6 of the agent under this title.

7 ‘‘(3) TRANSFER.—If a person that was accred8 ited under this title no longer continues to act as a

9 certifying agent or loses accreditation, each record

10 (or copy of the record) concerning the activities of

11 the person under this title shall be transferred to the

12 Secretary and made available by the Secretary to of13 ficers and employees of the State of Hawaii.

14 ‘‘(c) CERTIFICATION REPORT.—When certifying a

15 covered person that cultivates, harvests, or processes for16 est products in a tropical environment in Hawaii, the cer17 tifying agent shall prepare a certification report identify18 ing the basis for determining that the covered person

19 meets the standards established under this title.

20 ‘‘(d) AGREEMENT.—To be accredited under this title,

21 a certifying agent shall enter into an agreement with the

22 Secretary under which the agent shall agree to—

23 ‘‘(1) carry out the duties of the agent under

24 this title; and
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1 ‘‘(2) such other terms and conditions as the

2 Secretary determines appropriate.

3 ‘‘(e) SECURITY AND HOLD HARMLESS.—To be ac4 credited under this title, in addition to the agreement re5 quired under subsection (d), a certifying agent shall—

6 ‘‘(1) agree to hold the Secretary or, if applica7 ble, the State of Hawaii harmless for a failure by

8 the certifying agent to carry out the duties of the

9 agent under this title; and

10 ‘‘(2) provide reasonable security, if security is

11 determined by the Secretary or, if applicable, the

12 State of Hawaii to be necessary, for the purpose of

13 protecting the rights of participants in the applicable

14 certification program established under this title, in

15 an amount determined by the Secretary or the State.

16 ‘‘(f) COMPLIANCE.—A certifying agent shall fully

17 comply with the terms and conditions of the applicable cer18 tification program carried out under this title.

19 ‘‘(g) CONFIDENTIALITY.—Except as provided in sec20 tion 206(9), a certifying agent—

21 ‘‘(1) shall maintain strict confidentiality with

22 respect to a client of the agent under the certifi23 cation program; and

24 ‘‘(2) may not disclose to a third party (other

25 than the Secretary and the Governor) any business
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1 related information concerning the client obtained

2 while carrying out this title.

3 ‘‘(h) CONFLICT OF INTEREST.—A certifying agent

4 shall not—

5 ‘‘(1) carry out an inspection of an operation—

6 ‘‘(A) in which the certifying agent (or an

7 employee or relative of the certifying agent)

8 has, or has had, a commercial interest; or

9 ‘‘(B) with respect to which the agent has

10 provided consultant services;

11 ‘‘(2) accept a payment, gift, or favor from an

12 operation certified or inspected, other than any pre13 scribed fee for a certification or inspection under

14 this title; or

15 ‘‘(3) provide advice concerning sustainable for16 estry practices for a fee, other than any prescribed

17 fee for a certification or inspection under this title.

18 ‘‘(i) LOSS OF ACCREDITATION.—

19 ‘‘(1) NONCOMPLIANCE.—If the Secretary or, if

20 applicable, the Governor determines that a certifying

21 agent is not complying with this title, the Secretary

22 or Governor may suspend the accreditation of the

23 certifying agent.

24 ‘‘(2) EFFECT ON CERTIFIED OPERATIONS.—If

25 the accreditation of a certifying agent is suspended
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1 under paragraph (1), the Secretary or, if applicable,

2 the Governor shall promptly determine whether cul3 tivation, harvesting, or processing operations cer4 tified by the agent may retain their certification.

5 ‘‘SEC. 213. REVIEW OF CERTIFYING AGENTS.

6 ‘‘(a) PEER REVIEW PANEL.—

7 ‘‘(1) IN GENERAL.—To assist the Secretary or,

8 if applicable, the Governor in evaluating a person

9 who is seeking accreditation as a certifying agent

10 under this title, the Secretary may establish a panel

11 of not less than 3 individuals who have significant

12 expertise in the tropical forestry cultivation, harvest13 ing, or processing practices described in section 204.

14 ‘‘(2) LIMITATION.—Not more than 50 percent

15 of the members of a panel shall be employed by the

16 State of Hawaii.

17 ‘‘(b) PEER REVIEW.—In determining whether to ap18 prove an applicant for accreditation under this title, the

19 Secretary or, if applicable, the Governor shall consider any

20 report concerning the applicant that is prepared by a

21 panel established under subsection (a).

22 ‘‘SEC. 214. VIOLATIONS.

23 ‘‘(a) MISUSE OF LABEL.—A person who knowingly

24 sells or labels a product as a Hawaii tropical forest prod25 uct in violation of this title, except in accordance with this
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1 title, shall be subject to a civil penalty of not more than

2 $100,000.

3 ‘‘(b) PECUNIARY GAIN OR LOSS.—If any person de4 rives pecuniary gain from an offense described in sub5 section (a), or if the offense results in pecuniary loss to

6 a person other than the defendant, the defendant may be

7 fined under subsection (a) not more than twice the gross

8 gain or twice the gross loss.

9 ‘‘(c) FALSE STATEMENT.—A person who makes a

10 false statement under this title to the Secretary, an officer

11 or employee of the State of Hawaii, or a certifying agent

12 shall be subject to section 1001 of title 18, United States

13 Code.

14 ‘‘(d) INELIGIBILITY.—

15 ‘‘(1) IN GENERAL.—Except as provided in para16 graph (2), a person shall not be eligible, after notice

17 and an opportunity for a hearing, for a period of 5

18 years, to receive a certification under this title with

19 respect to a farm, product, or processing operation

20 in which the person has an interest, if the person—

21 ‘‘(A) makes a false statement;

22 ‘‘(B) attempts to have a label indicating

23 that an agricultural product is cultivated, har24 vested, or processed using the tropical forestry

25 practices established under this title affixed to
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1 a product that the person knows, or has reason

2 to know, has been produced in a manner that

3 is not in accordance with this title;

4 ‘‘(C) adopts a scheme or device designed to

5 evade, or that has the effect of evading, this

6 title; or

7 ‘‘(D) otherwise violates the purposes of a

8 certification program, as determined by the

9 Secretary or, if applicable, the Governor.

10 ‘‘(2) WAIVER.—The Secretary may reduce or

11 eliminate the period of ineligibility under paragraph

12 (1) if the Secretary determines that a modification

13 or waiver is in the best interests of the certification

14 program established under this title.

15 ‘‘(e) REPORTING.—A certifying agent shall imme16 diately report a violation of this title to the Secretary or,

17 if applicable, the Governor.

18 ‘‘(f) VIOLATIONS BY A CERTIFYING AGENT.—A cer19 tifying agent that violates this title or that falsely or neg20 ligently certifies any cultivation, harvesting, or processing

21 activity that does not meet the terms and conditions of

22 the certification program, as determined by the Secretary

23 or, if applicable, the Governor shall, after notice and an

24 opportunity to be heard—
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1 ‘‘(1) lose its accreditation as a certifying agent

2 under this title; and

3 ‘‘(2) be ineligible to be accredited as a certify4 ing agent under this title for a period of not less

5 than 5 years following the date of the determination.

6 ‘‘SEC. 215. SUNSET AUTHORITY.

7 ‘‘(a) PRIVATIZATION.—Subject to subsection (c), if

8 the Secretary or, if applicable, the Governor determines

9 that there is sufficient and demonstrated private sector

10 ability to operate a program described in section 203, 207,

11 or 211, the Secretary or, if applicable, the Governor may,

12 by rule, terminate the program otherwise established

13 under this title.

14 ‘‘(b) PETITION.—

15 ‘‘(1) IN GENERAL.—A private sector organiza16 tion may petition the Secretary or, if applicable, the

17 Governor to terminate the program described in sec18 tion 203, 207, or 211.

19 ‘‘(2) ANNOUNCEMENT OF DECISION.—Not later

20 than 120 days after receiving a petition, subject to

21 subsection (c), the Secretary or, if applicable, the

22 Governor shall announce a decision on the petition.

23 ‘‘(c) FINDING.—

24 ‘‘(1) IN GENERAL.—Prior to terminating a pro25 gram under subsection (a), the Secretary or, if ap-
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1 plicable, the Governor shall publish a notice describ2 ing the basis for determining that there is sufficient

3 and demonstrated private sector ability to operate a

4 program described in section 203, 207, or 211.

5 ‘‘(2) PUBLIC COMMENT.—The public shall have

6 the opportunity to comment on the proposed termi7 nation for a period of not less than 90 days before

8 the action becomes final.

9 ‘‘SEC. 216. ADMINISTRATIVE APPEAL.

10 ‘‘(a) EXPEDITED PROCEDURE.—The Secretary shall

11 establish an expedited administrative appeals procedure

12 under which a person may appeal an action of the Sec13 retary, the applicable governing State official, or a certify14 ing agent under this title that—

15 ‘‘(1) adversely affects the person; or

16 ‘‘(2) is inconsistent with the certification pro17 gram established under this title.

18 ‘‘(b) APPEAL OF FINAL DECISION.—A final decision

19 of the Secretary under subsection (a) may be appealed to

20 the United States district court for the district in which

21 the person is located.

22 ‘‘SEC. 217. ADMINISTRATION.

23 ‘‘(a) REGULATIONS.—Not later than 1 year after the

24 date of enactment of this title, the Secretary shall issue

25 regulations to carry out this title.
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1 ‘‘(b) ASSISTANCE.—

2 ‘‘(1) TECHNICAL ASSISTANCE.—To further the

3 purposes of this title, the Secretary shall provide

4 technical, administrative, and Extensive Service as5 sistance to the State of Hawaii and to covered per6 sons who cultivate, harvest, or process tropical forest

7 products.

8 ‘‘(2) FINANCIAL ASSISTANCE.—To further the

9 purposes of this title, the Secretary may provide

10 grants and other forms of financial assistance to—

11 ‘‘(A) the State of Hawaii;

12 ‘‘(B) persons who—

13 ‘‘(i) receive a certification under sec14 tion 203 or 207; or

15 ‘‘(ii) are certified by a private certifier

16 under a private sector program described

17 in section 215(a) after the termination

18 under section 215 of a program established

19 under section 203 or 207; and

20 ‘‘(C) persons involved in the stewardship of

21 tropical forests and forest products.

22 ‘‘SEC. 218. PUBLIC RECORDS.

23 ‘‘(a) MAINTENANCE.—The Secretary or, if applicable,

24 the Governor shall maintain copies of—
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1 ‘‘(1) forestry plans submitted under section

2 210;

3 ‘‘(2) accreditation reports prepared under sec4 tion 211;

5 ‘‘(3) certification reports prepared under sec6 tion 212; and

7 ‘‘(4) such other records as the Secretary or, if

8 applicable, the Governor considers appropriate.

9 ‘‘(b) AVAILABILITY.—The Secretary or, if applicable,

10 the Governor shall make records maintained under sub11 section (a) available for inspection during hours conven12 ient to the public.’’.

13 SEC. 3. CROP INSURANCE PILOT PROGRAM.

14 Section 508(h) of the Federal Crop Insurance Act (7

15 U.S.C. 1508(h)) is amended by adding at the end the fol16 lowing:

17 ‘‘(10) PILOT PROGRAM.—

18 ‘‘(A) DEFINITION OF ELIGIBLE PRO19 DUCER.—In this paragraph, the term ‘eligible

20 producer’ means a producer who—

21 ‘‘(i) receives a certification under sec22 tion 203 or 207 of the Hawaii Tropical

23 Forest Products Certification Act; or

24 ‘‘(ii) is certified by a private certifier

25 under a private sector program described
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1 in section 215(a) of that Act after the ter2 mination under section 215 of that Act of

3 a program established under section 203

4 or 207 of that Act.

5 ‘‘(B) PILOT PROGRAM.—

6 ‘‘(i) IN GENERAL.—The Corporation

7 shall carry out a pilot program to insure,

8 or provide reinsurance for insurers of, eli9 gible producers of forest products.

10 ‘‘(ii) REQUIREMENTS.—The pilot pro11 gram—

12 ‘‘(I) shall be adapted to the spe13 cific forest product; and

14 ‘‘(II) may insure, or provide rein15 surance for insurers of, only produc16 ers who have produced a crop of the

17 forest product for a period of less

18 than 5 years.’’.

19 SEC. 4. CONFORMING AMENDMENTS.

20 The Hawaii Tropical Forest Recovery Act (Public

21 Law 102–574; 106 Stat. 4593) is amended—

22 (1) by inserting before section 2 the following:
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1 ‘‘TITLE I—HAWAII TROPICAL

2 FOREST RECOVERY’’;

3 (2) by redesignating sections 2, 3, 4, and 5 as

4 sections 101, 102, 103, and 301, respectively;

5 (3) by inserting before section 301 (as so redes6 ignated) the following:

7 ‘‘TITLE III—AUTHORIZATION OF

8 APPROPRIATIONS’’;

9 and

10 (4) in section 301 (as so redesignated), by

11 striking ‘‘sections 3 and 4’’ and inserting ‘‘sections

12 102 and 103 and title II’’.

Æ