HOUSE OF REPRESENTATIVES             H.C.R. NO.175         
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                     HOUSE  CONCURRENT
                        RESOLUTION

  SUPPORTING AND ENCOURAGING THE EFFORTS OF OUT-OF-STATE BUYERS
    OF KONA COFFEE TO PROMOTE AND MARKET THIS UNIQUELY LOCAL
    PRODUCT.


 1        WHEREAS, coffee grown in Hawaii is an important product to
 2   the State's economy and is positioned for rapid growth.  The
 3   best known coffee grown in the State is Kona coffee.  Kona
 4   coffee, which--by definition--must be grown in the districts of
 5   North Kona and South Kona, has been raised on the island of
 6   Hawaii for over one hundred years.  Coffee is now grown on the
 7   islands of Kauai, Molokai, Oahu, and Maui, as well as Hawaii.
 8   These gourmet coffees offer a wide range of flavors and,
 9   together with Kona coffee, are the only coffees grown in the
10   United States; and
11   
12        WHEREAS, a little over two years ago, a company in
13   California with operations in Kona allegedly marketed and sold
14   coffee from Central America as Kona coffee.  The amount of
15   Central American coffee allegedly sold as Kona coffee exceeded
16   the entire output of real Kona coffee by three to four hundred
17   per cent.  Criminal charges were lodged against the alleged
18   perpetrators of this fraud, and legal proceedings are currently
19   in progress to bring this matter to trial; and
20   
21        WHEREAS, five people in Kona have filed a civil lawsuit in
22   federal court against the alleged perpetrators of this fraud
23   and their customers.  These customers, however, also did
24   business with many of the legitimate sellers of green Kona
25   coffee beans.  There are also two other lawsuits that have been
26   filed in the State of Hawaii and in the State of California;
27   and
28   
29        WHEREAS, the customers who are being sued have either
30   stopped buying Kona coffee or have greatly reduced other
31   purchases.  This is partially to blame for the buildup of
32   inventory and reduced prices for Kona coffee.  These factors
33   have also led to reduced prices for other coffees grown in the
34   State; and
35   

 
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                                  H.C.R. NO.175         
                                                        
                                                        


 1        WHEREAS, this body believes that the alleged perpetrators
 2   of this fraud should be prosecuted to fullest extent of the
 3   law.  This body, however, does not condone the civil action
 4   filed against the legitimate customers of the alleged
 5   perpetrators of this fraud.  The people responsible for
 6   bringing the civil actions against these customers make up less
 7   than one per cent of the people engaged in the coffee business
 8   in Kona and do not speak for the majority of the industry.
 9   These civil actions are adversely affecting the State's coffee
10   industry and do not promote Kona coffee or other coffees grown
11   in Hawaii; now, therefore,
12   
13        BE IT RESOLVED by the House of Representatives of the
14   Twentieth Legislature of the State of Hawaii, Regular Session
15   of 2000, the Senate concurring, that the Legislature supports
16   and encourages the efforts of out-of-state buyers of Kona
17   coffee to promote and market this uniquely local product; and
18   
19        BE IT FURTHER RESOLVED that the Legislature neither
20   endorses nor condones any civil actions that encompass the
21   legitimate buyers of Kona coffee who were also victimized by
22   the alleged perpetrators of the recent Kona coffee fraud; and
23   
24        BE IT FURTHER RESOLVED that a certified copy of this
25   Concurrent Resolution be transmitted to the President of the
26   Kona Coffee Council.
27   
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30 
31                         OFFERED BY:  ____________________________