STAND. COM. REP. NO. 839

Honolulu, Hawaii

RE: S.B. No. 746

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 746 entitled:

"A BILL FOR AN ACT RELATING TO COFFEE LABELING,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Expand the coffee labeling and advertising requirements to include ready-to-drink coffee beverages and inner packages and inner wrapping labels;

(2) Require a disclosure on the label of coffee blends of the respective geographic and regional origins and percent by weight of the blended coffees; and

(3) Prohibit the use of the term "All Hawaiian" in labeling or advertising for roasted coffee or instant coffee not produced entirely from green coffee beans grown and processed in Hawaii.

Your Committee received testimony in support of this measure from the Department of Agriculture; Adaptations, Inc.; Chamber of Sustainable Commerce; Cyanotech Corporation; Cassandra Farms; Growing Together Edible Landscaping; Hawai‘i Alliance for Progressive Action; Hawai‘i Farm Bureau; Hawai‘i Farmers Union United; Hawaii's Thousand Friends; Ka Ohana O Na Pua; Kealaola, LLC; Kanalani Ohana Farm; Kona Coffee Farmers Association; Kuaiwi Farm; Kuwale Ridge Farms; Life of the Land; Rancho Aloha Coffee Farm; and thirty individuals.

Your Committee finds that Hawaii is the only region in the world where local laws allow the use of the region in the name of the product with only ten percent genuine regional content. When consumers purchase what they believe is "Kona Coffee", but is in fact ninety percent foreign-grown, local farmers suffer economically. This measure protects consumers by promoting integrity in the labeling of products and supports one of the State's most valuable signature crops.

Your Committee has amended this measure by:

(1) inserting an effective date of July 1, 2050, to

encourage further discussion; and

(2) Making technical, nonsubstantive amendments for the

purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 746, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 746, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,

________________________________

JARRETT KEOHOKALOLE, Chair