HCR109

WHEREAS, there is strong support for changing Hawaii's Kona coffee minimum content laws, in particular, for increasing from ten to at least fifty per cent the required percentage of Kona-grown coffee that entitles a coffee to be called "Kona" coffee; and

WHEREAS, the Legislature is aware that support among persons and entities within Hawaii's coffee industry for increasing the minimum content requirement to fifty per cent is not unanimous; and

WHEREAS, the Legislature believes that in order to minimize disruption in this important local industry, it is important to proceed with caution, and only after obtaining important facts on the possible economic impacts that such a change would have on Kona coffee farmers, processors, retailers, and consumers, not to mention upon other coffee growing regions in the State such as Ka‘u and Kauai; and

WHEREAS, the statutory responsibilities of the Department of Business, Economic Development, and Tourism include, among others, to "provide economic research and analysis"; and

WHEREAS, many in the Kona coffee industry have expressed frustration at the apparent lack of enforcement of the minimum content law, which is intended to protect the State's Kona coffee industry; and

WHEREAS, at least one national fast-food chain has advertised that it serves "brisk Kona coffee", while other retailers claim through outdoor signs and other advertising media that they sell "Kona coffee"--under circumstances that make it highly unlikely that the coffee being sold or served is one hundred per cent Kona coffee; and

WHEREAS, however, the Legislature is also not insensitive to the fact that state laws, in order to be enforceable, cannot run afoul of constitutional protections afforded to commercial speech; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-fourth Legislature of the Sate of Hawaii, Regular Session of 2007, Senate concurring, that the Department of Business, Economic Development, and Tourism is requested to submit a report to the Legislature on the coffee industry in Hawaii that includes the following:

(1) A description of the coffee industry in Hawaii, with particular emphasis on the Kona coffee industry, and the roles played by each segment of the industry, such as the farmers, processors, retailers, and others;

(2) A description of how the respective segments of the Kona coffee have fared under the present law establishing a minimum content requirement of ten per cent in order for coffee to be called "Kona coffee";

(3) A thorough economic analysis of the probable impact of increasing the minimum content requirement to fifty per cent upon:

(A) Each segment of the Kona coffee industry; and

(B) Each segment of the coffee industry in the rest of the State, such as in Ka‘u and on islands other than the island of Hawaii; and

BE IT FURTHER RESOLVED that the Department of the Attorney General is requested to review existing statutes and rules relating to the enforcement of the Kona coffee minimum content requirements, including present enforcement programs and efforts presently carried out by the Department of Agriculture; and

BE IT FURTHER RESOLVED that the Department of the Attorney General is requested to report to the Legislature on:

(1) Identifying all statutes and rules that can presently be applied to address the enforcement of violations of the Kona coffee minimum content requirements, including claims made in labeling, and advertising claims in both local and national media;

(2) Modifications that can be made to criminal or civil enforcement statutes in terms of promoting ease of enforcement and effectiveness of deterrence against violations of the State's Kona coffee laws;

(3) Specific provisions and procedures, if any, that need to be enacted to enable the State or aggrieved persons to take action against persons or entities who make advertising claims in local or national media that violate Kona coffee minimum content requirements;

(4) Other recommendations in terms of personnel or other resources needed by the Department of Agriculture and other appropriate state agencies in order to more aggressively and effectively enforce Kona coffee minimum content requirements; and

BE IT FURTHER RESOLVED that, upon request, the Department of Agriculture is requested to cooperate with and assist the Department of Business, Economic Development, and Tourism and the Department of the Attorney General, as necessary, in their response to this Concurrent Resolution in conducting their studies; and

BE IT FURTHER RESOLVED that the Department of Business, Economic Development, and Tourism and the Department of the Attorney General are requested to seek input from as many stakeholders as possible; and

BE IT FURTHER RESOLVED that the Department of Business, Economic Development, and Tourism and the Department of the Attorney General are requested to submit separate reports of their findings, recommendations, and any proposed legislation to the Legislature not later than twenty days prior to the convening of the Regular Session of 2008; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Governor, the Director of Business, Economic Development, and Tourism, the Attorney General, and the Chairperson of the Board of Agriculture.

	OFFERED BY:	_____________________________

Report Title:

Requesting two studies about possible impacts of changes to Hawaii's Kona coffee blend law and the enforcement of violations of current laws

HOUSE OF REPRESENTATIVES	H.C.R. NO.	109
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII