THE SENATE	S.B. NO.	2913
TWENTY-SEVENTH LEGISLATURE, 2014		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO AGRICULTURE.

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

SECTION 1.  Hawaii-grown coffee is recognized for its high quality and aromatic flavor.  Hawaii-grown coffee is held to a set of quality standards that makes it one of the most expensive coffees in the world.

The 2011 Statistics of Hawaii Agriculture estimated the value of Hawaii-grown coffee at $31,540,000, and it was ranked fifth of the top twenty agriculture commodities in the State.

To protect the Hawaii coffee industry from counterfeiting, the legislature, in 2012, enacted Act 328 which established criminal penalties for Hawaii-grown cherry, parchment, and green coffees that are falsely labeled with regard to geographic origin.  However, in addition to geographic origin, stricter enforcement of labeling restrictions based on the quality of coffee being sold is critical to prevent further counterfeiting of Hawaii's recognized high quality coffee.  Furthermore, the criminal penalties for false labeling should apply not only to cherry, parchment, and green coffees, but also to natural, roasted, and instant coffees.

SECTION 2.  Section 708-871.5, Hawaii Revised Statutes, is amended to read as follows:

"[[]§708-871.5[]]  False labeling of Hawaii-grown coffee.  (1)  A person commits the offense of false labeling of Hawaii-grown coffee if the person knowingly transports, distributes, advertises, sells, or possesses with the intent to sell Hawaii-grown green coffee, cherry coffee, [or] parchment coffee, natural coffee, roasted coffee, or instant coffee that is falsely labeled with regard to [the geographic origin of the Hawaii-grown coffee.]:

(a) The geographic origin of green coffee, cherry coffee, parchment coffee, natural coffee, roasted coffee, or instant coffee;

(b) The grade standard classification for Hawaii-grown coffee set forth in rules adopted pursuant to chapter 147; or

(c) The use of a geographic origin in the labeling of roasted or instant coffee, if the green coffee beans used in the roasted or instant coffee do not meet the adopted rules regarding the grade standard classifications for Hawaii-grown coffee.

(2)  For purposes of this section:

"Cherry coffee" means the unprocessed fruit of the coffee plant.

"Geographic origin" means the geographic areas designated as follows:

     (a)  Hamakua is the Hamakua district on the island of Hawaii, as designated by the State of Hawaii tax map;

     (b)  Hawaii is the State of Hawaii;

     (c)  Kau is the Kau district on the island of Hawaii, as designated by the State of Hawaii tax map;

     (d)  Kauai is the island of Kauai;

     (e)  Kona is the north Kona and south Kona districts on the island of Hawaii, as designated by the State of Hawaii tax map;

     (f)  Maui is the island of Maui;

     (g)  Molokai is the island of Molokai; and

     (h)  Oahu is the island of Oahu.

"Green coffee" means the agricultural commodity comprised of green coffee beans.

"Instant coffee" means a soluble coffee product derived from roasted coffee that is brewed and dehydrated.

"Natural coffee" means coffee that is processed from cherry coffee that was dried with the husk on or coffee that is processed from parchment coffee with adhering mucilage.

"Parchment coffee" means the dried product that remains when coffee cherries are processed by removing the coffee seeds from the pulp.

"Roasted coffee" means a coffee product, either whole bean or ground, derived from altering the physicochemical properties of green coffee or natural coffee by applying prolonged heat.

(3)  False labeling of Hawaii-grown coffee is a class C felony."

SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

SECTION 5.  This Act shall take effect upon its approval.

Report Title:

Hawaii-grown Coffee; Labeling Restrictions

Description:

Specifies the false labeling restrictions for the offense of false labeling of Hawaii-grown coffee; applies the labeling of natural, roasted, and instant coffees to the offense; and defines natural coffee, roasted coffee, and instant coffee.  (SD1)

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