STAND. COM. REP. NO. 590

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 709
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Ocean Recreation and Marine Resources, to
which was referred H.B. No. 709 entitled: 

     "A BILL FOR AN ACT RELATING TO LABELING,"

begs leave to report as follows:

     The purpose of this bill is to require the accurate labeling
of aquatic foods by:

     (1)  Prohibiting aquatic foods that are grown, manufactured,
          significantly processed, or landed outside of the State
          from being labeled as a product of Hawaii;

     (2)  Prohibiting the use of Hawaiian names on aquatic foods
          originating outside of the State;

     (3)  Prohibiting restaurants from using Hawaiian names for
          aquatic products originating from outside the State;
          and

     (4)  Establishing a $5,000 fine for each violation of the
          above.

     Your Committee received testimony in favor of this bill from
the Office of Hawaiian Affairs (OHA), the Big Island Fishermen's
Association, Hawaii Fishermen's Foundation, Boats/Hawaii Inc.,
and several commercial fishers.  The Hawaii Food Industry
Association supported the intent of the bill.  Testimony in
opposition to this measure was received by the Department of

 
 
                                 STAND. COM. REP. NO. 590
                                 Page 2

 
Agriculture, and the Hawai'i Restaurant Association.  The
Department of Business, Economic Development, and Tourism (DBEDT)
submitted comments.

     Your Committee finds that mislabeling or deceptive labeling
of aquatic products is a problem for both the local fishing
industry and the consumer.  Hawaii fishery operations must
compete with cheaper, imported products often labeled with
Hawaiian names and sold as local seafood.  Many consumers,
particularly visitors, are not aware of this and have no way of
judging whether the "local catch" they purchase is truly from
Hawaii.

     Your Committee also finds, however, that referring to a fish
type by its Hawaiian name is a strong marketing tool, especially
for Hawaii's fledgling value-added seafood product manufacturers.

     Your committee has amended the bill by:

     (1)  Deleting all references and provisions relating to
          restaurants;

     (2)  Deleting the provision that prohibits aquatic foods
          that are grown, manufactured, significantly processed,
          or landed outside of the State from being labeled as a
          product of Hawaii; 

     (3)  Allowing the use of Hawaiian names on aquatic foods
          originating from outside of the State if the product
          qualifies as Hawaiian-made, or if the term "imported"
          or the region of origin precedes the Hawaiian name;

     (4)  Changing the fine amount to $0 for the purpose of
          continuing discussion of the bill; and

     (5)  Making technical, nonsubstantive amendments for the
          purposes of clarity, consistency, and style.


 
 
 
 
 
 
 
 
 
 
 
                                 STAND. COM. REP. NO. 590
                                 Page 3

 
     As affirmed by the record of votes of the members of your
Committee on Ocean Recreation and Marine Resources that is
attached to this report, your Committee is in accord with the
intent and purpose of H.B. No. 709, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 709, H.D. 1, and be referred to the Committee
on Consumer Protection and Commerce.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Ocean Recreation
                                   and Marine Resources,



                                   ______________________________
                                   Roy M. Takumi, Chair