[§148-62] 
Authorization to contract with nonprofit corporations; duties.  (a)  The
department of agriculture may enter into contracts with nonprofit corporations
to engage in the activities in subsections (b), (c), and (d).  These nonprofit
corporations shall:



(1)  Maintain
status as a nonprofit corporation pursuant to section 501(c) of the Internal
Revenue Code of 1986, as amended; and



(2)  Consist of a
board of directors comprised of representatives from a cross-section of
agricultural organizations, commodity groups, and governmental agencies.



(b)  The
nonprofit corporations contracted under subsection (a) may develop and
recommend to the department of agriculture for adoption, rules relating to:



(1)  The design of
a seal of quality for agricultural products that are grown, processed, or
manufactured in Hawaii;



(2)  The standards
and criteria for agricultural products grown, processed, or manufactured in
Hawaii that must be satisfied to obtain use of the seal of quality; and



(3)  The license
fees required for use of the seal of quality.



(c)  The
nonprofit corporations contracted under subsection (a) shall:



(1)  Develop and
implement marketing programs for products licensed to use the seal of quality;



(2)  Issue
licenses for the use of the seal of quality and collect the license fees
established by rules of the department of agriculture; and



(3)  Develop
promotional materials and establish and collect fees for the use of these
promotional materials.



(d)  The
nonprofit corporations contracted under subsection (a) may:



(1)  Assist the
department of agriculture in monitoring compliance with the requirements for
the use of the seal of quality; and



(2)  Accept gifts
or grants in any form from any public agency or any other source. [L 2002, c
163, pt of §2]