STAND. COM. REP. NO.  783-14

Honolulu, Hawaii

                , 2014

RE:   H.B. No. 2361

      H.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committees on Consumer Protection & Commerce and Judiciary, to which was referred H.B. No. 2361, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

beg leave to report as follows:

The purpose of this measure is to prevent the counterfeiting of Hawaii's high quality coffee by extending the offense of false labeling of Hawaii-grown coffee to include:

(1)  Violations of established grade standard requirements; and

     (2)  All stages of production.

The Office of the Prosecuting Attorney, County of Hawaii; Hawaii Coffee Association; Kona Coffee Council; Royal Kona Coffee Visitor Center Mill & Museum; Kau Coffee Mill; Hawaii Farm Bureau; Dole Waialua Coffee; and numerous individuals testified in support of this measure.  Times Supermarket testified in opposition to this measure.  The Department of Agriculture, Hawaii Coffee Growers Association, and an individual provided comments on this measure.

     Your Committees have amended this measure by adopting the Department of Agriculture's amendments provided to your Committees, which, among other things:

     (1)  Retain the listing of the specific types of coffee protected under the offense of false labeling of Hawaii-grown coffee and adds natural coffee to that list;

     (2)  Extend the offense of false labeling of Hawaii-grown coffee to apply to the use of 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 grade standard requirements of rules adopted pursuant to the State's grades and standards law; and

     (3)  Make technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the records of votes of the members of your Committees on Consumer Protection & Commerce and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2361, H.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as H.B. No. 2361, H.D. 2.

Respectfully submitted on behalf of the members of the Committees on Consumer Protection & Commerce and Judiciary,

____________________________ KARL RHOADS, Chair

____________________________ ANGUS L.K. McKELVEY, Chair