STAND. COM. REP. NO. 2241

Honolulu, Hawaii

RE:    S.B. No. 2561

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committees on Health and Public Safety, Intergovernmental and Military Affairs, to which was referred S.B. No. 2561 entitled:

"A BILL FOR AN ACT RELATING TO COTTAGE FOODS,"

beg leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Permit the establishment of a cottage food industry in Hawaii;

     (2)  Establish registration and permitting requirements for cottage food operations;

     (3)  Establish two classes of cottage food operations – class A to engage only in direct sales of cottage food products, and class B to engage in direct and indirect sales of cottage food products;

     (4)  Establish an approved cottage food products list and procedures for the addition to or deletion from the list; and

     (5)  Establish labeling requirements, prohibitions, and inspection procedures for cottage food operations.

     Your Committees received testimony in support of this measure from the Local Food Coalition and several individuals.  Your Committees received testimony in opposition to this measure from the Department of Health.

     Your Committees find that permitting the increased development of the local cottage food industry will increase the use of local foods in small scale, value-added products.  This measure supports Hawaii's local farmers and ranchers, while encouraging the consumption of locally grown foods.

     Your Committees have amended this measure by:

     (1)  Inserting an effective date of January 1, 2050, to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the records of votes of the members of your Committees on Health and Public Safety, Intergovernmental and Military Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2561, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2561, S.D. 1, and be referred to the Committees on Commerce and Consumer Protection and Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Health and Public Safety, Intergovernmental and Military Affairs,

____________________________ WILL ESPERO, Chair

____________________________ JOSH GREEN, Chair