STAND. COM. REP. NO.  1635

Honolulu, Hawaii

                , 2007

RE:   H.C.R. No. 110

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. 110 entitled:

"HOUSE CONCURRENT RESOLUTION REQUESTING THE DEPARTMENT OF AGRICULTURE TO ADOPT ADMINISTRATIVE RULES TO ESTABLISH UNIFORM INSPECTION, CERTIFICATION, AND AUDIT REQUIREMENTS FOR ALL COFFEE GROWN IN HAWAII,"

begs leave to report as follows:

     The purpose of this concurrent resolution is to promote consistency in the quality of Hawaii-grown coffee by requesting the Department of Agriculture (DOA) to adopt uniform administrative rules to establish uniform inspection and certification requirements for all coffee beans, whether green or roasted, grown in Hawaii, including administrative rules to establish audit requirements for all coffee mills and roasters in Hawaii.

     Hawaii Teamsters Local 996, Kona Coffee Council, Kona Mountain Coffee Company, Greenwell Farms, and a concerned individual supported this measure. The Royal Kona Visitor Center Mill & Museum, Pomare Ltd., Royale Island Coffee Hawaii, Hawaii Coffee Association, Hawaii Coffee Company, Inc., DFS Group, Ltd., Honolulu Brewing Company LLC, and several concerned individuals supported this measure with amendments.  Smithfarms and numerous concerned individuals opposed this measure.  DOA submitted comments.

     Your Committee notes that concerns were raised regarding the provisions in this measure that request DOA to establish uniform inspection and certification requirements for all coffee beans grown in Hawaii, whether green or roasted.  DOA indicated that once roasted, coffee beans lose all origin, grade, visual, and taste attributes and cannot be inspected and graded the way green coffee beans are inspected and graded.

     In addition, your Committee finds that one of the most serious concerns affecting the coffee industry in Hawaii is the misleading advertising and marketing of inferior quality, non-Hawaii-grown coffee.  Your Committee requests DOA to consider the issue of inferior blends of non-Hawaii-grown coffee and coffee-related products, and offer suggestions on how to best address this concern.

     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. 110 and recommends that it be referred to the Committee on Consumer Protection & Commerce.

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

____________________________

CLIFT TSUJI, Chair