CONFERENCE COMMITTEE REP

CONFERENCE COMMITTEE REP. NO.90-02

Honolulu, Hawaii

, 2002

RE: S.B. No. 2666

S.D. 2

H.D. 1

C.D. 1

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2666, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO A SEAL OF QUALITY FOR FRESH AND PROCESSED AGRICULTURAL PRODUCTS,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to establish a seal of quality program for fresh and processed agricultural products that are produced within the State.

Your Committee on Conference finds that Hawaii's agricultural products inherently maintain a distinct and well-deserved reputation of freshness, value, and quality in the market. In order to compete nationally and internationally, there needs to be a consolidated and uniform method of indicating that an agricultural product originates from Hawaii and carries with it Hawaii's valuable goodwill. Establishing a seal of quality program would ensure that only products that have been substantially fabricated or have had a substantial portion of their value added in Hawaii will be presented to consumers as genuine Hawaii products. Your Committee on Conference finds that this measure establishes a program that provides Hawaii's agriculture industry a labeling standard that preserves and enhances the value of their Hawaiian products.

Your Committee on Conference has amended this measure by:

(1) Requiring nonprofit corporations contracted pursuant to the seal of quality program to develop the marketing programs for licensed products, issue licenses and collect the license fees, and to develop promotional materials and establish and collect fees for their usage;

(2) Providing that these nonprofit corporations may assist the Department of Agriculture in monitoring compliance with the seal of quality program and may accept gifts or grants from public agencies or other sources;

(3) Mandating the Department of Agriculture to adopt rules as necessary to implement the seal of quality program;

(4) Eliminating the provisions that establish a seal of quality special fund; and

(5) Making technical, nonsubstantive changes to accommodate the foregoing amendments.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 2666, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2666, S.D. 2, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ FELIPE P. ABINSAY, JR., Co-Chair	____________________________ JAN YAGI BUEN, Chair
____________________________ BENJAMIN C. CABREROS, Co-Chair	____________________________ COLLEEN HANABUSA, Co-Chair