SB2905 SD2

THE SENATE	S.B. NO.	2905
TWENTY-FOURTH LEGISLATURE, 2008		S.D. 2
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO AGRICULTURE.

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

SECTION 1. The legislature finds that there has been increased discussion on 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.

As Hawaii is the only coffee growing region in the United States, recent years have also seen an increase in other Hawaii regional coffees, and more information is needed to support and promote the coffee industry.

The legislature further finds that Senate Concurrent Resolution No. 102, H.D. 1 (2007) was adopted on April 27, 2007, requesting the department of agriculture to study existing labeling requirements relating to the use of the "Kona coffee" or other Hawaii-grown coffee names and the effectiveness of current administrative rules relating to the inspection, certification, and audit requirements for all Hawaii-grown coffee beans.

That resolution further specified twelve separate issues to be covered by the department of agriculture's study, which included "a thorough economic analysis of the probable impact of increasing the minimum content requirement to fifty per cent upon each segment of the Kona coffee industry, and each segment of the coffee industry in other parts of the state, such as Ka‘u and on islands other than the island of Hawaii". The resolution further requested the department of agriculture to "determine the fiscal impact that stricter labeling requirements or a uniform national labeling requirement standard will have on farmers of small coffee bean farms in Hawaii ... " and "the fiscal impact that a uniform inspection and certification scheme for all Hawaii-grown coffee beans will have on growers of small coffee bean farms".

However, the legislature finds that the economic analysis and fiscal impact portions of the department of agriculture's study are a major undertaking requiring funding support, and because appropriations could not be made by resolution, the legislature finds it necessary to now appropriate funds for that purpose through this Act.

Accordingly, the purpose of this Act is to appropriate funds to support the economic analysis and fiscal impact portions of the study that the department of agriculture is currently conducting pursuant to Senate Concurrent Resolution No. 102 (2007).

SECTION 2. 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 2008-2009 to fund the economic analysis and fiscal impact portions of the study being conducted by the department of agriculture pursuant to Senate Concurrent Resolution No. 102, H.D. 1 (2007).

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

SECTION 3. This Act shall take effect on July 1, 2008.