HB693 HD1

relating to agriculture.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that there is strong support for changing Hawaii's Kona coffee blend laws, in particular, increasing from ten to seventy-five per cent the required percentage of Kona-grown coffee that entitles a coffee to be called "Kona" coffee.

In addition, there is support for strengthening the labeling laws to inform consumers properly about coffee's origin and requiring a certification for Kona coffee to ensure a high quality of Kona coffee. The legislature further finds that there is a need to have an objective, reasoned examination of these issues.

The purpose of this Act is to direct the department of agriculture to undertake a study to evaluate possible impacts on farmers, processors, retailers, and consumers if certain changes are made to the current Hawaii Kona coffee blend laws.

SECTION 2. (a) The department of agriculture shall conduct a study of the possible impacts of changes to current Hawaii Kona coffee blend laws, including:

(1) Increasing from ten to seventy-five per cent the required percentage of Kona-grown coffee that entitles a coffee to be labeled "Kona coffee";

(2) Adapting the labeling standards accordingly; and

(3) Requiring state certification for Kona coffee grown and sold in the North and South Kona districts to confirm the coffee's Kona origin.

(b) The study shall include an analysis of pertinent issues, including:

(1) A description of the current economic situation concerning Kona coffee as it pertains to farmers, processors, and retailers;

(2) Identifying existing concerns or issues regarding the current ten per cent Kona coffee minimum blend requirement;

(3) An evaluation of the possible economic impact of raising the current ten per cent Kona coffee minimum blend requirement to seventy-five per cent on:

(A) Farmers;

(B) Processors; and

(4) An evaluation of anticipated consumer reaction, taking into account a likely increase in the price of Kona coffee;

(5) An evaluation of how to strengthen the State's "truth-in-labeling" laws, as provided in section 486-120.6, Hawaii Revised Statutes, to further enhance consumer awareness of blended Kona coffee; provided that the evaluation shall particularly take into account what people in Hawaii's coffee industry perceive as a statutory omission that allows a double identity statement regarding the coffee, and shall propose solutions to achieve a more accurate description of all ingredients in the ingredient statement on the coffee package;

(6) An examination of how to achieve national recognition for Kona coffee and deter the illegal use of the term "Kona Coffee" in connection with coffee products in Hawaii and on the continental United States that do not meet Hawaii's standards established for Kona coffee; and

(7) An evaluation of whether to institute state certification for Kona coffee grown and sold in the South Kona district and the North Kona district to confirm the coffee's Kona origin, and if so, how best to accomplish it.

The department of agriculture shall seek input from as many stakeholders as possible, including the Hawaii Coffee Association, the Kona Coffee Council, the Kona County Farm Bureau, and the University of Hawaii.

The department of business, economic development, and tourism, and the department of the attorney general, upon request, shall assist the department of agriculture in conducting this study.

SECTION 3. The department of agriculture shall submit a report of its findings, recommendations, and any proposed legislation to the legislature at least twenty days prior to the convening of the regular session of 2008.

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ , or so much thereof as may be necessary for fiscal year 2007-2008, to fund the study by the department of agriculture required by this Act.

The sum appropriated shall be expended by the department of agriculture for the purposes of this Act.

SECTION 5. This Act shall take effect on July 1, 2007.

HOUSE OF REPRESENTATIVES	H.B. NO.	693
TWENTY-FOURTH LEGISLATURE, 2007		H.D. 1
STATE OF HAWAII