Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 2490, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to establish labeling requirements for roasted or instant coffees made from Hawaii-grown beans.

Your Committee received testimony in support of this measure from the Department of Agriculture, Kauai Coffee Company, Hawaii Coffee Company, Hawaii Coffee Association, Schooler Farms of Hawaii, Petersen Marketing, Dragons Lair Kona Coffee Farm, Kona Coffee Council, Maui Oma Coffee Roasting Co., Coffee Creations, Inc., Kimo Bean Coffee Company, Bad Ass Coffee Company, Hawaii Farm Bureau Federation, Hawaii Food Industry Association, and Greenwell Farms.

Your Committee finds that coffees with Hawaii geographic origins other than Kona are gaining recognition and require the same protection against false claims of origin that applies to coffees made from Kona-grown beans. Coffee blends containing Hawaii-grown coffees are also establishing a position in the marketplace and standardized labeling for blended coffees would help to improve consumer confidence in these products.

Currently, the law establishes minimum content and labeling requirements for roasted or instant coffee produced in whole or in part from Kona coffee beans. This measure replaces those requirements with labeling standards for roasted or instant coffee made from all Hawaii-grown coffees. These "truth-in-labeling" standards require disclosure of the geographic origin and percentage of the Hawaii-grown coffee contained in roasted or instant coffee and further require that this disclosure be made in minimum size type and conspicuously displayed on the product. The measure also clarifies prohibited labeling practices and requires roasters and manufacturers to maintain records on the volume and geographic origin of coffees purchased and sold for two years.

Your Committee has amended this measure by clarifying that only existing supplies of nonconforming labels may continue to be used by manufacturers and roasters during the one year period following the Act's effective date, and by making technical, nonsubstantive changes for purposes of clarity and style.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2490, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2490, S.D. 2.