SB3248

SECTION 1. The legislature finds that ʻōkolehao is a traditional Hawaiian distilled spirit with deep historical and cultural significance. ʻŌkolehao traces its origins to the early contact period in Hawaiʻi and was historically produced from fermented kī (Cordyline fruticosa) root, commonly known as ti plant or ti-leaf, a plant of profound cultural importance used for food, medicine, ceremony, and material culture in Native Hawaiian society. The legislature further finds that ʻōkolehao was widely recognized in the nineteenth and early twentieth centuries as a distinctive spirit of Hawaiʻi, celebrated internationally and produced exclusively in the islands. Over time, however, the absence of clear standards and labeling protections has allowed the ʻōkolehao name to be misused, undermining consumer confidence and diluting the cultural integrity and economic potential of this historic Hawaiian product.

The legislature also finds that the Alcohol and Tobacco Tax and Trade Bureau of the United States Department of the Treasury regulates the labeling of distilled spirits in interstate commerce, including standards of identity that define the class and type designations used on distilled spirits labels. The Alcohol and Tobacco Tax and Trade Bureau has been asked to establish a federal standard of identity for ʻōkolehao to clarify minimum production requirements and prevent consumer confusion in domestic and foreign markets. The legislature believes that the establishment of a state-level standard and labeling requirements will support and complement ongoing efforts to define ʻōkolehao as a distinctive product of Hawaiʻi.

The legislature additionally finds that other regionally distinctive food and beverage products, such as tequila, bourbon, and champagne, have demonstrated that clear standards, authentic branding, and place-based visitor experiences can drive strong economic outcomes for local communities by supporting agricultural production, creating jobs, and attracting higher-spending visitors.

The legislature further finds that Kentucky's distilling industry has become a major driver of Kentucky's economy, with reports estimating billions of dollars in annual economic output and millions of visitor experiences related to distillery tourism. The legislature notes that Napa Valley's visitor economy demonstrates how a distinctive, place-based beverage identity can position a rural region as an international destination, supporting billions of dollars in visitor spending, generating local tax revenue, and sustaining thousands of jobs.

Establishing similar protections for ʻōkolehao will help restore its rightful place in the State's cultural and agricultural landscape while creating an authentic visitor experience that strengthens the State's brand as a destination rooted in culture, place, and local production.

The legislature recognizes that kī cultivation and ʻōkolehao distillation present opportunities to support Hawaiʻi farmers, promote value-added agriculture, and strengthen rural economies, while ensuring that consumers receive a product that is truthfully labeled and rooted in Hawaiʻi.

Accordingly, the purpose of this Act is to protect ʻōkolehao as a distinctive product of Hawaiʻi by establishing labeling requirements for ʻōkolehao products.

SECTION 2. Chapter 486, Hawaii Revised Statutes, is amended by adding a new section to part V to be appropriately designated and to read as follows:

"§486- Okolehao; labeling requirements. (a) No label on a consumer package that contains or includes a distilled spirit shall use:

(1) The words "ʻōkolehao", "okolehao", "Hawaiian ʻōkolehao", or any variation of these terms; or

(2) Hawaiian imagery, place names, or motifs that would mislead a reasonable person into believing the consumer package contains or includes a distilled spirit that contains or includes ʻōkolehao,

unless the distilled spirit meets the definition of ʻōkolehao.

(b) Any nonconsumer package of ʻōkolehao introduced into intrastate or interstate commerce shall bear a label clearly stating that the product is "Hawaiʻi-distilled ʻōkolehao made with Hawaiʻi-grown kī".

(c) The department may establish and administer a voluntary certification mark program to verify compliance with this section.

(d) The department may bring an action for injunctive relief to compel compliance with this section.

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

(f) For the purposes of this section:

"ʻŌkolehao" means a distilled spirit that:

(1) Is distilled from a fermented mash, at least fifty-one per cent of which is derived from kī root (Cordyline fruticosa), also known as the ti plant or ti-leaf, grown in the State;

(2) Is distilled and bottled in the State;

(3) Is distilled at less than ninety-five per cent alcohol by volume (one hundred ninety degrees proof);

(4) Is bottled at no less than forty per cent alcohol by volume (eighty degrees proof);

(5) May contain flavoring or coloring materials, including those added through barrel aging; provided that the flavoring or coloring materials comply with federal standards; and

(6) Is distilled from agricultural products, at least fifty-one per cent of which were cultivated and harvested within the State."

SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	3248
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII