STAND. COM. REP. NO. 860

Honolulu, Hawaii

RE: S.B. No. 763

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 763, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ADVERTISING AND MARKETING,"

begs leave to report as follows:

The purpose and intent of this measure is to require that the Department of Business, Economic Development, and Tourism, in consultation with the Department of Agriculture, conduct a study assessing the economic impacts of and recommending solutions to the sale of products in the United States using misleading place-based marketing, or the sale of products held out to be of or from Hawaii but that actually have no material connection to the State.

Your Committee received written comments in support of this measure from the Oahu County Committee on Legislative Priorities of the Democratic Party of Hawaii, Hawaii Coffee Association, Shaka Tea, Onomea Tea Company, Kamiloiki Brand Mamaki, and seven individuals.

Your Committee received written comments on this measure from the Department of Business, Economic Development, and Tourism.

Your Committee finds that this measure will help protect the integrity of Hawaii's brands and economy by establishing the scope of and offering solutions to the issue of companies selling products in the United States using place-based marketing having no material connection to the State, a practice that disadvantages local companies and producers.

Your Committee has amended this measure by:

(1) Changing the appropriation to an unspecified amount; and

(2) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 763, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 763, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair