HB2773 HD1

SECTION 1. Chapter 486, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§486- Agricultural product branding and country or region of origin labeling. (a) All honey, processed macadamia nuts, coffee, tea, chocolate, vanilla, sea salt, and any other plant or animal product grown, packaged, or sold in Hawaii for which any information or name indicating "Hawaiʻi", "Hawaiian", or any region of Hawaii, with or without Hawaiian okina, and where the product is less than one hundred per cent grown in Hawaii, shall, after the word "Contains:", list on the front label the country or region of origin and the percentage of each country's or region's portion of the product in descending order of percentage and in font size at least one-half the size of the largest font on the front label; provided that this subsection shall not apply to spices unless spice is the major portion of the product.

(b) Any agricultural product with a front label that reads, with or without Hawaiian okina:

(1) "100% Hawai‘i (product)" or "Hawai‘i (product)";

(2) "100% Hawai‘i-Grown (product)" or "Hawai‘i-Grown (product)";

(3) "100% Grown in Hawai‘i";

(4) "100% Hawai‘i-Made (product)" or "Hawai‘i-Made (product)";

(5) "100% Hawaiian-Made (product)" or "Hawaiian-Made (product)";

(6) "100% Made in Hawai‘i"; or

(7) "100% Hawaiian (product)" or "Hawaiian (product)",

shall contain one hundred per cent Hawaii-grown product; provided that this subsection shall not apply to spices unless spice is the major portion of the product.

(c) All agricultural products claiming to be one hundred per cent grown in a single Hawaiian region shall be labeled to conform to the following conditions:

(1) Any product with a front label that reads, with or without Hawaiian okina, in a font size at least one-half the size of the largest font:

(A) "100% (region) (product)" or "(Region) (product)";

(B) "100% (Region)-Grown (product)" or "(Region)-Grown (product)";

(D) "100% (Region) (product)",

shall contain one hundred per cent Hawaiian region-grown product; and

(2) Any blend with a front label that reads, with or without Hawaiian okina, in a font size at least one-half the size of the largest font:

(A) "100% Hawaiian Islands (product) Blend"; or

(B) "100% Hawai‘i Islands (product) Blend",

shall contain one hundred per cent products from Hawaii;

provided that this subsection shall not apply to spices unless spice is the major portion of the product.

(d) All packaging and labeling for agricultural products claiming to contain some but less than one hundred per cent Hawaii-grown product shall conform to the following specifications:

(1) A blended plant or animal product labeled with the words "Hawai‘i" or "Hawaiian" or the name of any Hawaiian region shall:

(A) Contain a minimum of seventy-five per cent of that named region's agricultural or animal product and shall use the word "Blend" in the identification of the product;

(B) List the percentage number of the majority portion of the product; and

(C) List after the word "Contains:" in descending order, and after the majority content, the remainder of the product by percentage and country or Hawaiian region of origin, with or without okina;

provided that the bulk listing, or combination, of percentages shall be allowed for Hawaiian regions only; provided further that the labeling required in subparagraphs (A), (B), and (C) shall be printed on the front label in a font size at least one-half the size of the largest font on the front label; and

(2) Any blended product that contains less than seventy-five per cent of a Hawaiian product shall not use the names "Hawai‘i" or "Hawaiian" or any Hawaiian regional name on the front label, with or without Hawaiian okina, except in the contents list, which shall identify on the front label the countries or geographic regions of origin for the entire product with the percentage of each country's or region's portion of the product in a font size at least one-half the size of the largest font on the front label.

(e) Nothing stated on the side or back labels on any product subject to this section shall be inconsistent with statements appearing on the front label.

(f) For the purposes of this section, "animal product" does not include muscle cuts of lamb, chicken, goat, and venison; ground lamb, chicken, goat, and venison; and meat produced from goats, chicken, wild fish, and farm-raised fish."

SECTION 2. Section 486-119, Hawaii Revised Statutes, is amended to read as follows:

"§486-119 Hawaii-made products; Hawaii-processed products. (a) No person shall keep, offer, display or expose for sale, or solicit for the sale of any item, product, souvenir, or any other merchandise that is labeled "made in Hawaii" or that by any other means misrepresents the origin of the item as being from any place within the State, or uses the phrase "made in Hawaii" as an advertising or media tool for any craft item that has not been manufactured, assembled, fabricated, or produced within the State and that has not had at least fifty-one per cent of its wholesale value added by manufacture, assembly, fabrication, or production within the State.

(b) Subsection (a) notwithstanding, no person shall keep, offer, display, expose for sale, or solicit the sale of any perishable consumer commodity that is labeled "made in Hawaii", "produced in Hawaii", or "processed in Hawaii" or that by any other means represents the origin of the perishable consumer commodity as being from any place within the State, or use the phrase "made in Hawaii", "produced in Hawaii", or "processed in Hawaii" as an advertising or media tool for any perishable consumer commodity, unless the perishable consumer commodity is wholly or partially manufactured, processed, or produced within the State from raw materials that originate from inside or outside the State and at least fifty-one per cent of the wholesale value of the perishable consumer commodity is added by manufacture, processing, or production within the State.

(c) To the extent the provisions of this section are inconsistent with the labeling requirements of section 486- , the provisions of section 486- shall prevail."

SECTION 3. Section 486-120.5, Hawaii Revised Statutes, is amended to read as follows:

"§486-120.5 Macadamia nuts; labeling requirements. (a) If a label on a consumer package contains language that all of the raw or processed macadamia nuts contained in the package were grown in Hawaii, the label shall be worded, "100% Hawaii-Grown Macadamia Nuts", "Hawaii-Grown Macadamia Nuts", "100% Hawaiian Macadamia Nuts", or "Hawaiian Macadamia Nuts", and shall appear on the principal display panel of the package.

(b) If a label on a consumer package contains language that a portion of the raw or processed macadamia nuts contained in the package was grown in Hawaii, the label shall be worded "Hawaii-Grown Macadamia Nuts", preceded by the per cent by weight of the macadamia nuts contained in the package that were grown in Hawaii, and shall appear on the principal display panel of the package. The per cent by weight of the macadamia nuts in the package shall be the percentage calculated by dividing the weight in pounds of the macadamia nuts grown in Hawaii that are in the package by the weight in pounds of all macadamia nuts in the package and multiplying the quotient by one hundred.

(c) All nonconsumer packages containing macadamia nuts grown in the State and introduced into intrastate or interstate commerce shall bear on the package a label containing language that the package contains Hawaii-grown macadamia nuts. This label shall be in addition to all other labeling requirements specified in this chapter.

(d) Any person keeping, offering, displaying, exposing for sale, or soliciting for sale, any raw or processed macadamia nut product, which represents or which is branded or labeled that all or a percentage or portion of the macadamia nuts were grown in Hawaii, shall make available to the administrator, upon demand, documented proof that the amount of macadamia nuts represented to be grown in the State, was grown in the State.

(e) It shall be a violation of this part:

(1) To use a label containing the words, "100% Hawaii-Grown Macadamia Nuts", "Hawaii-Grown Macadamia Nuts", "100% Hawaiian Macadamia Nuts", or "Hawaiian Macadamia Nuts", or similar wording, or to otherwise represent that all of the macadamia nuts in the package were grown in Hawaii, if any portion of the macadamia nuts contained in the package was not grown in the State;

(2) To use a label, as provided for under subsection (b), containing the words "Hawaii-Grown Macadamia Nuts" preceded by a percentage, if less than the specified percentage or none of the macadamia nuts in the package was grown in the State; or

(3) To use a label representing that any of the macadamia nuts contained in the package was grown in the State, if none of the macadamia nuts contained in the package was grown in the State.

(f) Any person who violates this section shall be subject to penalties under section 486-32.

(g) To the extent the provisions of this section are inconsistent with the labeling requirements of section 486- , the provisions of section 486- shall prevail."

SECTION 4. Section 486-120.6, Hawaii Revised Statutes, is amended to read as follows:

"§486-120.6 Hawaii-grown and Hawaii-processed coffee; labeling or advertising requirements. (a) In addition to all other labeling requirements, the identity statement used for labeling or advertising roasted coffee, instant coffee, or ready-to-drink coffee beverages produced in whole or in part from Hawaii-grown and Hawaii-processed green coffee beans shall meet the following requirements:

(1) For roasted coffee, instant coffee, or ready-to-drink coffee beverages that contain one hundred per cent Hawaii-grown and Hawaii-processed coffee by weight, the identity statement shall consist of either:

(A) The geographic origin of the Hawaii-grown and Hawaii-processed coffee, in coffee consisting of beans from only one geographic origin, followed by the word "Coffee"; provided that the geographic origin may be immediately preceded by the term "100%"; or

(B) The per cent coffee by weight of one of the Hawaii-grown and Hawaii-processed coffees, used in coffee consisting of beans from several geographic origins, followed by the geographic origin of the weight-specified coffee and the terms "Coffee" and "All Hawaiian";

(2) For roasted coffee, instant coffee, or ready-to-drink coffee beverages consisting of a blend of one or more Hawaii-grown and Hawaii-processed coffees and coffee not grown or processed in Hawaii, the per cent coffee by weight of one of the Hawaii-grown and Hawaii-processed coffees used in the blend, followed by the geographic origin of the weight-specified coffee and the term "Coffee Blend"; and

(3) Each word or character in the identity statement shall be of the same type size and shall be contiguous. The smallest letter or character of the identity statement on packages of sixteen ounces or less net weight shall be at least one and one-half times the type size required under federal law for the statement of net weight or three-sixteenths of an inch in height, whichever is smaller. The smallest letter or character of the identity statement on packages of greater than sixteen ounces net weight shall be at least one and one-half times the type size required under federal law for the statement of net weight. The identity statement shall be conspicuously displayed without any intervening material in a position above the statement of net weight. Upper and lower case letters may be used interchangeably in the identity statement.

(b) A listing of the geographic origins of the various Hawaii-grown and Hawaii-processed coffees and the regional origins of the various coffees not grown or processed in Hawaii that are included in a blend shall be shown on the label. This list shall consist of the term "Contains:", followed by, in descending order of per cent coffee by weight and separated by commas, the respective geographic origin or regional origin of the various coffees in the blend. Each geographic origin or regional origin shall be preceded by the per cent coffee by weight represented by that geographic origin or regional origin, expressed as a number followed by the per cent sign. In place of separate listings of regional origins of coffee not grown or processed in Hawaii in the blend, the list may include the words "Foreign-grown Coffee", preceded by the per cent coffee by weight in the blend. The type size used for this list shall be no less than half that of the identity statement. This list shall appear below the identity statement on the front panel of the label.

(c) The requirements of subsections (a) and (b) shall apply to the labeling of any inner package or inner wrapping of the roasted coffee, instant coffee, or ready-to-drink coffee beverages that includes any geographic origin of Hawaii-grown and Hawaii-processed coffee, regardless of whether the inner package or inner wrapping is intended to be individually sold.

(d) It shall be a violation of this section to:

(1) Use the identity statement specified in subsection (a)(1)(A) or similar terms in labeling or advertising unless the package of roasted coffee, instant coffee, or ready-to-drink coffee beverage contains one hundred per cent coffee by weight from that one geographic origin;

(2) Use a geographic origin in labeling or advertising, including in conjunction with a coffee style or in any other manner, if the roasted coffee, instant coffee, or ready-to-drink coffee beverage contains less than ten per cent coffee by weight from that geographic origin;

(3) Use a geographic origin in labeling or advertising roasted coffee, instant coffee, or ready-to-drink coffee beverages, including advertising in conjunction with a coffee style or in any other manner, without disclosing the per cent coffee by weight used from that geographic origin as described in subsection (a)(1)(B) and (a)(2);

(4) Use a geographic origin in labeling or advertising roasted coffee, instant coffee, or ready-to-drink coffee beverages, including in conjunction with a coffee style or in any other manner, if the green coffee beans used in that roasted coffee, instant coffee, or ready-to-drink coffee beverage do not meet the grade standard requirements of rules adopted under chapter 147;

(5) Misrepresent, on a label or in advertising of a roasted coffee, instant coffee, or ready-to-drink coffee beverage, the per cent coffee by weight of any coffee from a geographic origin or regional origin;

(6) Use the term "All Hawaiian" on a label or in advertising of a roasted coffee, instant coffee, or ready-to-drink coffee beverage if that roasted coffee, instant coffee, or ready-to-drink coffee beverage is not produced entirely from green coffee beans grown and processed in Hawaii;

(7) Use a geographic origin on the front label panel of a package of roasted coffee, instant coffee, or ready-to-drink coffee beverage other than in the trademark or in the identity statement as authorized in subsection (a)(1) and (2) unless the roasted coffee, instant coffee, or ready-to-drink coffee beverage contains one hundred per cent coffee by weight from that geographic origin;

(8) Use more than one trademark on a package of roasted coffee, instant coffee, or ready-to-drink coffee beverage unless the roasted coffee, instant coffee, or ready-to-drink coffee beverage contains one hundred per cent coffee by weight from that geographic origin specified by the trademark;

(9) Use a trademark that begins with the name of a geographic origin on a package of roasted coffee, instant coffee, or ready-to-drink coffee beverage unless the roasted coffee, instant coffee, or ready-to-drink coffee beverage contains one hundred per cent coffee by weight from that geographic origin or the trademark ends with words that indicate a business entity; or

(10) Print the identity statement required by subsection (a) in a smaller font than that used for a trademark that includes the name of a geographic origin pursuant to paragraph (7) and in a location other than the front label panel of a package of roasted coffee, instant coffee, or ready-to-drink coffee beverage.

(e) Roasters, manufacturers, or other persons who package roasted coffee, instant coffee, or ready-to-drink coffee beverages covered by this section shall maintain, for a period of two years, records on the volume and geographic origin or regional origin of coffees purchased, sold, and used and any other records required by the department for the purpose of enforcing this section. Authorized employees of the department shall have access to these records during normal business hours.

(f) To the extent the provisions of this section are inconsistent with the labeling requirements of section 486- , the provisions of section 486- shall prevail.

[~~(f)~~] (g) As used in this section:

"Geographic origin" means the geographic regions in which Hawaii-grown green coffee beans are produced, as defined in rules adopted under chapter 147; provided that the term "Hawaiian" may be substituted for the geographic origin "Hawaii".

"Per cent coffee by weight" means the percentage calculated by dividing the weight in pounds of roasted green coffee beans of one geographic or regional origin used in a production run of roasted coffee, instant coffee, or ready-to-drink coffee beverages by the total weight in pounds of the roasted green coffee beans used in that production run of roasted coffee, instant coffee, or ready-to-drink coffee beverages, and multiplying the quotient by one hundred.

"Ready-to-drink coffee beverage" means a prepackaged beverage that consists of or includes coffee and is sold in a prepared form that can be immediately consumed upon purchase. "Ready-to-drink coffee beverage" does not include made-to-order beverages."

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 3000.

HOUSE OF REPRESENTATIVES	H.B. NO.	2773
THIRTY-SECOND LEGISLATURE, 2024		H.D. 1
STATE OF HAWAII