STAND. COM. REP. NO. 2560

Honolulu, Hawaii

RE: S.B. No. 2103

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 2103 entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

The purpose and intent of this measure is to deter coffee counterfeiting by:

(1) Expanding the application of the criminal offense of false labeling of Hawaii-grown coffee to include roasted coffee;

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

(3) Establishing and appropriating funds for an enforcement position within the Department of Agriculture.

Your Committee received testimony in support of this measure from the Department of Agriculture, Hawaii Coffee Association, Hawaiʻi Farm Bureau, and one individual.

Your Committee received comments on this measure from the Hawaii Coffee Company.

Your Committee finds that Hawaii-grown coffee, the State's second most lucrative crop, is enjoyed around the world and is recognized for its outstanding quality. However, your Committee finds that counterfeit coffee, or the practice of falsely labeling discount coffee as being Hawaii-grown, has undermined Hawaii's hardworking farmers by creating an artificial increase in supply, thereby driving down the price and value of authentic Hawaii-grown coffee. Your Committee further finds that this practice has been almost exclusively exploited by sellers of roasted coffee products. This measure will make the harmful practice of counterfeiting roasted coffee a criminal offense, thereby protecting local coffee farmers and safeguarding the integrity and reputation of the State's premium coffee.

Your Committee has amended this measure by:

(1) Inserting an unspecified appropriation amount; and

(2) Inserting an effective date of July 1, 2040, to encourage further discussion.

Your Committee notes that this measure, as amended, contains an unspecified appropriation amount. Should your Committees on Judiciary and Ways and Means choose to deliberate on this measure, your Committee respectfully requests that the committees consider inserting an appropriation amount of $88,935 for fiscal year 2024-2025.

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. 2103, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2103, S.D. 1, and be referred to your Committees on Judiciary and Ways and Means.

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

________________________________

JARRETT KEOHOKALOLE, Chair