STAND. COM. REP. NO.  1112-14

Honolulu, Hawaii

                , 2014

RE:   S.B. No. 2913

      S.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Agriculture, to which was referred S.B. No. 2913, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

The purpose of this measure is to protect Hawaii's coffee industry, producer of one of the top commodities in the State, from counterfeiting by expanding the scope of the offense of False Labeling of Hawaii-Grown Coffee to include:

     (1)  The false labeling of natural coffee, roasted coffee, and instant coffee, in addition to green coffee, cherry coffee, or parchment coffee with regard to geographic origin; and

     (2)  The false labeling of those coffees specified above with regard to grade standard classification, or 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 grade standard classifications for Hawaii-grown coffee.

The Hawaii Farm Bureau, Greenwell Farms, Kona Coffee Council, Hawaii Coffee Association, Royal Kona Coffee Visitor Center Mill & Museum, Maui Coffee Association, Edmund C. Olson Trust II, and several concerned individuals supported this measure.  The Department of Agriculture supported the intent of this bill.  Lions Gate Farms, Hawaii Farmers Union United, Kona Coffee Farmers Association, Lavarock Farm, Kanalani Ohana Farm, and numerous concerned individuals opposed this measure.

     Your Committee respectfully requests that your Committees on Consumer Protection and Commerce and Judiciary give special attention to the question of whether the same record requirements should apply to all coffee roasted in Hawaii to prevent coffee counterfeiting or whether exemptions may be allowed for small, farm to table coffee farms.  Your Committee recognizes that those supporting this measure generally represent larger farms and coffee processors that also process and roast coffee from other farms.  Those opposing this bill generally represent small-scale farms in the Kona District of Hawaii County who harvest, process, roast, and sell coffee direct from farm to table.  Representatives from these small-scale farms advised your Committee that the measure would impose burdensome new regulation on small-scale, farm to table businesses for which there is no history of coffee counterfeiting.

     As affirmed by the record of votes of the members of your Committee on Agriculture that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2913, S.D. 1, and recommends that it pass Second Reading and be referred to the Committees on Consumer Protection & Commerce and Judiciary.

Respectfully submitted on behalf of the members of the Committee on Agriculture,

____________________________

JESSICA WOOLEY, Chair