Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Agriculture, to which was referred H.B. No. 2169, H.D. 2, entitled:

begs leave to report as follows:

The purpose of this measure is to expand mandatory labeling requirements for Kona roasted and instant coffee, to roasted and instant coffee made from all Hawaii-grown green coffee. This measure also clarifies labeling requirements, definitions, and violations; and establishes record keeping requirements.

Your Committee received testimony in support of this measure from the Chairperson of the Board of Agriculture, Hawaii Coffee Company, Petersen Marketing, Honaunau Coffee Company, Greenwell Farms, Hawaii Farm Bureau Federation, Hawaii Agriculture Research Center, Maui Oma Coffee Roasting Co. Inc., Coffee Creations, Inc., Hawaii Coffee Association, Kauai Coffee, Hawaii Food Industry Association, and Kona Coffee Council.

Your Committee finds that coffees of Hawaii geographic origins other than Kona are gaining recognition as coffees of importance and need the same protections against false claims of origin previously offered only to Kona coffees. Blends of the various Hawaii-grown coffees are also carving new market positions, and a standardized labeling criterion will improve consumer confidence in the blended products.

This measure's approach to labeling is based on truth-in-labeling and allows greater flexibility in the information presented to the consumer of these coffees than does current law. The consumer will be made aware of the coffee's origin, the percentage of Hawaii coffees used in a blend, and whether the coffee offered for sale is 100% from one of the identified coffee origins in Hawaii.

Record keeping requirements and more clearly defined violations are included to improve the ability of the enforcement agency to assure compliance with the law.

Your Committee made technical, nonsubstantive amendments to the measure to reflect preferred drafting style.

As affirmed by the record of votes of the members of your Committee on Agriculture that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2169, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2169, H.D. 2, S.D. 1, and be referred to the Committee on Commerce, Consumer Protection and Housing.