STAND. COM. REP. NO. 246

Honolulu, Hawaii

RE: S.B. No. 516

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Agriculture and Environment, to which was referred S.B. No. 516 entitled:

"A BILL FOR AN ACT RELATING TO HEMP,"

begs leave to report as follows:

The purpose and intent of this measure is to require that the identity statement used for labeling or advertising hemp products specify the percentage of Hawaii grown hemp and hemp of other origins contained in hemp products.

Your Committee received testimony in support of this measure from the Department of Agriculture and Hawai‘i Hemp Farmers Association. Your Committee received comments on this measure from the Department of Health.

Your Committee finds that with the relaxation of cannabis laws across the nation, the hemp plant is burgeoning as a lucrative crop and commodity. The Hawaii hemp cannabinoid market is estimated to be worth $32,000,000 to $52,000,000 annually, but most of that money flows to out-of-state hemp farmers and businesses due in part to Hawaii residents not being able to differentiate between products made with imported hemp and products made with Hawaii-grown hemp. Your Committee additionally finds that Hawaii hemp farmers face the highest costs of production among hemp farmers in the United States. In order to ensure that hemp farmers in Hawaii are not crowded out in the marketplace by out-of-state competitors, this measure will require that hemp products for sale in the State advertise the percentage of Hawaii grown hemp on the product label to inform consumers as to which products, and how much of which, is sourced from hemp grown in Hawaii.

Your Committee acknowledges the testimony received from the Department of Agriculture, which recommends an appropriation for one full-time (1.0 FTE) measurements standards inspector for the purpose of labeling, packaging enforcement, and inspection. The inspector is necessary to help rebuild the Department of Agriculture's labeling enforcement capability and address labeling enforcement challenges in various Hawaii products, including inspecting and verifying the percentage of Hawaii coffee and coffee of other origins contained in roasted coffee, instant coffee, and ready-to-drink coffee beverages. Should your Committee on Ways and Means choose to deliberate on this measure, we respectfully request that it considers the Department's recommendation.

As affirmed by the record of votes of the members of your Committee on Agriculture and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 516 and recommends that it pass Second Reading and be referred to your Committee on Commerce and Consumer Protection.

Respectfully submitted on behalf of the members of the Committee on Agriculture and Environment,

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MIKE GABBARD, Chair