Section 39-26-40 - Covered farm; qualified exemptionFor the repeal of this section, see Sections 39-26-140 and 39-26-160.
(A) Except as provided in subsection (B), a farm with an average annual monetary value of produce sold during the previous three-year period of more than twenty-five thousand dollars on a rolling basis, adjusted for inflation using 2011 as the baseline year for calculating the adjustment, is a "covered farm" as used in this chapter, unless the context requires a different meaning. A covered farm shall comply with all applicable requirements of 21 C.F.R. Part 21, this chapter, or any provision of a regulation of the department promulgated pursuant to Section 39-26-50 when conducting a covered activity, as defined in 21 C.F.R. Section 112.3(c), on covered produce.(B) A farm is not subject to this chapter if:(1) it satisfies the requirements in 21 C.F.R. Section 112.5; and(2) the U.S. Food and Drug Administration, or the department operating on authority delegated from the U.S. Food and Drug Administration, has not withdrawn the farm's exemption in accordance with the requirements of 21 C.F.R. Section 112 Subpart R; or if the U.S. Food and Drug Administration, or the department operating on authority delegated from the U.S. Food and Drug Administration, has stayed the withdrawal of the farm's exemption pursuant to the procedures and requirements of 21 C.F.R. Section 112 Subpart R; or if the U.S. Food and Drug Administration, or the department operating on authority delegated from the U.S. Food and Drug Administration, has revoked the withdrawal of the farm's exemption pursuant to the procedures and requirements of 21 C.F.R. Section 112 Subpart R; or if the U.S. Food and Drug Administration, or the department operating on authority delegated from the U.S. Food and Drug Administration, has not confirmed the withdrawal of the farm's exemption in response to the farm's appeal of the withdrawal pursuant to the procedures and requirements of 21 C.F.R. Section 112 Subpart R; or if the U.S. Food and Drug Administration, or the department operating on authority delegated from the U.S. Food and Drug Administration, has reinstated the farm's exemption pursuant to the procedures and requirements of 21 C.F.R. Section 112 Subpart R.(C) A farm is eligible for a qualified exemption and associated modified requirements in a calendar year if: (1) during the previous three-year period preceding the applicable calendar year, the average annual monetary value of the food, as defined in 21 C.F.R. Section 112.3(c), the farm sold directly to qualified end-users, as defined in 21 C.F.R. Section 112.3(c), during such period exceeded the average annual monetary value of the food the farm sold to all other buyers during that period; and(2) the average annual monetary value of all food, as defined in 21 C.F.R. Section 112.3(c), the farm sold during the three-year period preceding the applicable calendar year was less than five hundred thousand dollars, adjusted for inflation, using 2011 as the baseline year for calculating the adjustment for inflation.(D) If a farm is eligible for a qualified exemption in accordance with 21 C.F.R. Section 112.5, the farm is subject to the requirements of 21 C.F.R. Section 112 Subparts A, O, Q, and R.(E) If a farm is eligible for a qualified exemption in accordance with 21 C.F.R. Section 112.5, the farm is subject to the modified requirements established in 21 C.F.R. Section 112.6(b).(F) A farm eligible for an exemption under this section may complete forms made available by the department. The department shall issue the farm an exemption certificate as an official acknowledgement of the farm's exemption status. However, receipt of any certificate from the department is in no way a condition of eligibility for an exemption under this section.Added by 2017 S.C. Acts, Act No. 92 (HB 4003), s 1, eff. 5/19/2017.