STAND

STAND. COM. REP. 394

Honolulu, Hawaii

, 2003

RE: H.B. No. 544

H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Agriculture, to which was referred H.B. No. 544 entitled:

"A BILL FOR AN ACT RELATING TO ORGANIC LABELING,"

begs leave to report as follows:

The purpose of this bill is to establish provisions relating to certification and labeling of organically produced agricultural products. This bill, among other things:

(1) Allows the Department of Agriculture (DOA) to adopt rules establishing:

(A) Requirements for registration and recognition of certifying agents;

(B) Requirements for labeling of organically produced products at wholesale and retail; and

(2) Requires any certifying agent who certifies producers of agricultural products organically produced in the State to be registered with DOA;

(3) Requires certifying agents seeking registration with DOA to submit evidence of accreditation by the Secretary of the United States Department of Agriculture or an authorized designee;

(4) Requires certifying agents registered in the State to submit and keep current a list of producers certified by them in the State;

(5) Requires DOA to recognize, as certified organic, any agricultural product produced by producers in other states or countries who are certified by certifying agents in that state or country;

(6) Requires any person claiming to be a small farmer to register with DOA in a manner established by rules;

(7) Prohibits certifying agents from referring to compliance with the provisions of the bill to suggest that the State licenses, approves, or regulates the activities of certifying agents in certifying producers of organically produced agricultural products;

(8) Prohibits agricultural products from being labeled organically produced, certified organic, or claimed in any other manner to be organic, unless the product:

(A) Has been produced by a producer certified by a certifying agent registered with or recognized by DOA; and

(B) Is labeled with the logo, mark, or other indicia of that certifying agent;

and

(9) Establishes administrative penalties for persons violating the provisions of this bill.

DOA, Hawaii Farm Bureau Federation, Maui County Farm Bureau, Hawaii Organic Farmers Association, and Kulamanu Farm supported this bill. Hawaii Bio Organic Growers Association opposed this bill.

Your Committee has amended this measure by:

(1) Removing the restrictions on labeling and instead incorporating the following labeling provision that: "No agricultural product may be labeled 100 percent organic, organic, made with organic (specified ingredients or food groups(s)) or claimed in any other manner to be organic unless the product meets the labeling requirements as specified in Title 7 Code of Federal Regulations section 205 part D;"

(2) Clarifying that DOA shall recognize, as certified organic, any agricultural product produced by producers in other states or countries who are certified by certifying agents, regardless of the location of the certifying agents; and

(3) Making technical, nonsubstantive amendments for purposes of style and clarity.

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. 544, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 544, 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 Agriculture,

		____________________________ FELIPE P. ABINSAY, JR., Chair