THE SENATE

S.B. NO.

745

THIRTY-SECOND LEGISLATURE, 2023

S.D. 1

STATE OF HAWAII

H.D. 2

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO AGRICULTURE.

 

 

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

 

     SECTION 1.  The legislature finds that Hawai‘i's coffee industry is the State's second most lucrative agricultural crop, valued by the United States Department of Agriculture at $98,000,000 annually, with additional upstream and downstream impacts that include employment, land preservation, and tourism.

     The legislature further finds that Hawai‘i-grown coffee is among the highest priced coffee sold anywhere in the world, largely due to the high cost of production and its reputation for outstanding quality.  As such, the State's coffee industry is susceptible to fraud when less expensive coffees are falsely labeled as originating from Hawai‘i.  Under existing state law, penalties are imposed for the false labeling (counterfeiting) of Hawai‘i-grown coffee in cherry and parchment form, but the fraud of coffee counterfeiting has been almost exclusively committed in roasted coffee products.  Coffee counterfeiting undermines Hawai‘i's coffee farmers by misrepresenting an increase in supply, thereby creating downward price pressure and value depreciation in the marketplace.  Additionally, further harm occurs when inferior products are introduced into the supply chain, thereby undermining Hawai‘i's hard-fought brand identity for high-quality crops.

     Moreover, the legislature believes that enforcement of coffee labeling laws is of paramount importance to their effectiveness, and that investment in enforcement will compound labeling requirements' effectiveness by enhancing its deterrent effect.  As such, the legislature finds that a full-time position within the department of agriculture dedicated solely to the enforcement of labeling laws applicable to Hawai‘i's agricultural products will greatly improve brand integrity in the State.

     Accordingly, the purpose of this Act is to deter coffee counterfeiting by:

     (1)  Expanding the criminal offense for false labeling of Hawai‘i-grown coffee to roasted coffee;

     (2)  Enhancing the penalties for the criminal offense of false labeling of Hawai‘i-grown coffee through the imposition of a mandatory fine; and

     (3)  Establishing a position within the department of agriculture for labeling and packaging enforcement and inspection.

     SECTION 2.  Section 708-871.5, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§708-871.5[]]  False labeling of [Hawaii-grown] Hawai‘i-grown coffee.  (1)  A person commits the offense of false labeling of [Hawaii-grown] Hawai‘i-grown coffee if the person knowingly transports, distributes, advertises, sells, or possesses with the intent to sell [Hawaii-grown] Hawai‘i-grown green coffee, cherry coffee, [or] parchment coffee, or roasted coffee that is falsely labeled with regard to the geographic origin of the [Hawaii-grown] Hawai‘i-grown coffee.

     (2)  For purposes of this section:

     "Cherry coffee" means the unprocessed fruit of the coffee plant.

     "Geographic origin" means the geographic areas designated as follows:

     (a)  [Hamakua] Hāmākua is the [Hamakua] Hāmākua district on the island of [Hawaii,] Hawai‘i, as designated by the State of [Hawaii,] Hawai‘i, tax map;

     (b)  [Hawaii] Hawai‘i is the State of [Hawaii;] Hawai‘i;

     (c)  [Kau] Ka‘ū is the [Kau] Ka‘ū district on the island of [Hawaii,] Hawai‘i, as designated by the State of [Hawaii] Hawai‘i tax map;

     (d)  [Kauai] Kaua‘i is the island of [Kauai;] Kaua‘i;

     (e)  Kona is the north Kona and south Kona districts on the island of [Hawaii,] Hawai‘i, as designated by the State of [Hawaii] Hawai‘i tax map;

     (f)  Maui is the island of Maui;

     (g)  [Molokai] Moloka‘i is the island of [Molokai;] Moloka‘i; and

     (h)  [Oahu] O‘ahu is the island of [Oahu.] O‘ahu.

     "Green coffee" means the agricultural commodity comprised of green coffee beans.

     "Parchment coffee" means the dried product that remains when coffee cherries are processed by removing the coffee seeds from the pulp.

     "Roasted coffee" means the product that results from heating the coffee cherry seeds to augment aroma and flavor.

     (3)  False labeling of [Hawaii-grown] Hawai‘i-grown coffee is a class C felony.  In addition to any penalties imposed pursuant to section 706‑605, the court shall impose on any defendant convicted of false labeling of Hawai‘i-grown coffee a mandatory fine of $10,000 for each separate offense.  The mandatory fine imposed shall not be suspended or waived."

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawai‘i the sum of $           or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 to fund one full-time equivalent (1.0 FTE) measurements standards inspector (BU3, SR-19, Step C) position within the department of agriculture for the purpose of labeling and packaging enforcement and inspection.

     The sums appropriated shall be expended by the department of agriculture for the purposes of this Act.

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval; provided that section 3 shall take effect on June 30, 3000.

 

Report Title:

Roasted Coffee; False Labeling; Fines; Appropriation

 

Description:

Extends the offense of false labeling of Hawai‘i-grown coffee to include roasted coffee.  Imposes a mandatory $10,000 fine for each separate offense of false labeling of Hawai‘i-grown coffee.  Appropriates funds for one full-time equivalent (1.0 FTE) enforcement position.  Effective 6/30/3000.  (HD2)

 

 

 

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