Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Water, Land, and Agriculture, to which was referred S.B. No. 542 entitled:

begs leave to report as follows:

The purpose of this measure is to prohibit the labeling of agricultural products as "organic" unless the method of production has been certified as organic.

Testimony in support of this measure was submitted by the Hawaii Farm Bureau, Maui County Farm Bureau, Hawaii Organic Farmers Association, Pinner Creek Farms, Kona Rainforest Farms, and a concerned citizen. The Department of Agriculture (Department) submitted testimony in support of the measure, with proposed amendments. Testimony in support of the intent of the measure was submitted by the Hawaii Agriculture Research Center.

The further purpose of this measure is to recognize organic certifying agents accredited by the Secretary of Agriculture, establish administrative penalties for false labeling, allow the Department to adopt rules pertaining to enforcement of organic labeling, and bring state laws into compliance with new federal requirements.

Your Committee finds that this measure addresses weaknesses found in the U.S. Department of Agriculture's National Organic Program by addressing the enforcement of organic labeling. This will help protect the legitimate producers of organic products from unfair competition and provide consumers with assurances that they are receiving the product expected.

Upon the recommendation of the Department of Agriculture, your Committee has amended this measure to comply with the federal requirements that have been established since the measure was introduced.

As affirmed by the record of votes of the members of your Committee on Water, Land, and Agriculture that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 542, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 542, S.D. 1, and be referred to the Committee on Judiciary and Hawaiian Affairs.