SB2666

Report Title:

Seal of Quality for Fresh and Processed Agricultural Products

Description:

Establishes a seal of quality program that establishes seals to indicate the quality of fresh and processed agricultural products produced in Hawaii.

THE SENATE	S.B. NO.	2666
TWENTY-FIRST LEGISLATURE, 2002
STATE OF HAWAII

A BILL FOR AN ACT

relating to a seal of quality for fresh and processed agricultural products.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The purpose of this Act is to protect the integrity and value of the marketing cachet for Hawaii branded farm and value-added products. The Hawaii brand, whether it is marketed as a visitor destination, manufactured product, or farm or value added product, drives Hawaii-based sales at value-added prices. In the case of Hawaii's fresh and value-added agricultural products, the marketplace is filled with goods that bear the label Hawaii or Hawaiian with no real substantiation of the origin and quality of the product. Unsuspecting visitors and residents perceive that they are purchasing a bona fide Hawaiian agricultural product.

The legislature finds that establishing a seal of quality for fresh and value-added agricultural products that meet high quality standards, are grown, manufactured, assembled, or fabricated in Hawaii, and which have a substantial amount of their wholesale value added by manufacture, assembly, fabrication, or production within the State provides consumers with assurance in their product selection. Such a program complements section 486-119, Hawaii Revised Statutes, which requires that fifty-one per cent of the wholesale value of a product be added by manufacture, assembly, fabrication, or production within the state in order to use the term "made in Hawaii".

SECTION 2. Chapter 148, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"PART . SEAL OF QUALITY

"§148- Establishment of a seal of quality program. There is established within the department of agriculture a seal of quality program, which may include a certificate of origin. This program shall establish official seals of quality for fresh and processed agricultural products that are produced within the State. The seals of quality may be in the form of seals, brands, labels, or trademarks.

There shall be established the Hawaii marketing alliance, which shall be a public body corporate and politic and an instrumentality and agency of the State. The corporation may later incorporate as a nonprofit corporation if this proves desirable and does not adversely affect the interests of the seal of quality program. The corporation shall be headed by a board of directors, and be placed within the department of agriculture for administrative purposes.

The corporation shall:

(1) Develop a seal of quality branding program for superior quality Hawaii agriculture produce and added-value products; and

(2) Develop and implementing the marketing program for the seal of quality branding program.

§148- Rules. Subject to chapter 91, the department of

agriculture may adopt rules with respect to:

(1) Definition of terms;

(2) The design of the seals of quality for identifying fresh or processed agricultural commodities that are produced within the State;

(3) The categories of fresh or processed agricultural commodities that are eligible to use the seals of quality;

(4) The minimum quality of fresh or processed agricultural commodities that are eligible to use the seals of quality;

(5) The minimum per cent of wholesale value added within the State to qualify for use of the seals of quality;

(6) Minimum packaging and labeling requirements for fresh or processed agricultural commodities using a seal of quality;

(7) Application forms for the license to use the seals of quality, and the information required to be included on the application forms;

(8) Assessment and collection of license fees for the use of the seals of quality to cover the costs of providing the service;

(9) Assessment and collection of charges for stickers, placards, and other promotional materials provided by the department of agriculture;

(10) Provisions for the appropriate use of seals of quality, including use in advertisements;

(11) Record keeping requirements for parties licensed to use the seals of quality;

(12) Administrative penalties for violation of this part; and

(13) Enforcement of this part.

§148- Enforcement. (a) The department of agriculture is empowered through its authorized agents and employees to enforce this part.

(b) The department of agriculture or its authorized agent may examine, during normal business hours, any ledgers, books, accounts, memoranda, and other documents, fresh or processed agricultural products, supplies and equipment, and any other articles and things used in connection with the business of a person licensed under this part.

§148- Prohibited acts. No person shall:

(1) Use a seal of quality established under this part without being licensed;

(2) Use a seal of quality on a fresh or processed agricultural commodity that does not meet the requirements of this part;

(3) Use a device, symbol, indicia, or by any other means imitate the seal of quality established by this part; or

(4) Make any claim that a fresh or processed agricultural commodity is permitted to use a seal of quality when it is not.

§148- Administrative penalties. (a) The department of agriculture, after notice and opportunity for hearing, may revoke or suspend any license issued under this part for any violation of this part.

(b) The department of agriculture, after notice and opportunity for hearing, may fine any person who violates this part, not more than $1,000 for each separate offense. Each day or instance of violation shall constitute a separate offense. Any action taken to impose or collect the penalty provided for in this section shall be considered a civil action.

§148- Seal of quality program special fund; disposition of fees and charges. There is established an agricultural seal program special fund into which shall be deposited moneys derived from license fees and charges for stickers, fines, placards, and other promotional materials. The moneys within the special fund shall by expended by the department of agriculture in establishing and implementing the seal of quality program including purchasing materials, salaries, equipment, training, promotional and educational activities, and other costs related to providing the seal of quality program."

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________