STAND. COM. REP. NO.  1634

Honolulu, Hawaii

                , 2007

RE:   H.C.R. No. 109

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Agriculture, to which was referred H.C.R. No. 109 entitled:

"HOUSE CONCURRENT RESOLUTION REQUESTING THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM TO PROVIDE AN ECONOMIC ANALYSIS OF THE IMPACT OF CHANGES TO HAWAII'S KONA COFFEE MINIMUM CONTENT LAWS, AND REQUESTING THE DEPARTMENT OF THE ATTORNEY GENERAL TO STUDY WAYS TO IMPROVE ENFORCEMENT OF THOSE LAWS,"

begs leave to report as follows:

     The purpose of this concurrent resolution is to promote and protect Kona coffee by:

     (1)  Requesting the Department of Business, Economic Development, and Tourism (DBEDT) to report to the Legislature on Hawaii's coffee industry, including a thorough economic analysis of the probable impact on each segment of the coffee industry in the state of increasing the minimum Kona coffee content requirement to fifty per cent; and

     (2)  Requesting the Department of the Attorney General (AG) to review existing laws and programs related to the enforcement of Kona coffee minimum content requirements and submit a report to the Legislature that includes ways to improve enforcement of Kona coffee laws.

     Greenwell Farms, Hawaii Teamsters Local 996, Kona Coffee Council, Kona Mountain Coffee Company, and several concerned individuals supported this measure.  Honolulu Brewing Company LLC, DFS Group, Ltd., Royale Island Coffee Hawaii, Tropical Taste Distribution, Hawaii Coffee Company, Inc., Hawaii Coffee Association, and a concerned individual supported this measure with amendments.  DBEDT supported the intent of this measure.  The Department of Agriculture supported the intent of this measure with amendments.  Kona Coffee Farmers Association and numerous concerned individuals opposed this measure.

     Your Committee is aware of the issues raised by DBEDT  regarding the feasibility and cost implications of the economic analysis requested in this measure.  Your Committee supports future legislative efforts to address these concerns.

     In addition, your Committee recognizes the importance of enforcing laws regulating Kona coffee.  AG is encouraged to explore and recommend ways to improve enforcement of these laws.

     As affirmed by the record of votes of the members of your Committee on Agriculture that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 109 and recommends that it be referred to the Committees on Consumer Protection & Commerce and Judiciary.

Respectfully submitted on behalf of the members of the Committee on Agriculture,

____________________________

CLIFT TSUJI, Chair