STAND. COM. REP. NO. 816

Honolulu, Hawaii

RE: S.B. No. 895

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred S.B. No. 895 entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

The purpose and intent of this measure is to extend the offense of false labeling of Hawaii-grown coffee to include roasted coffee.

Your Committee received testimony in support of this measure from the Department of Agriculture; one member of the Hawai‘i County Council; Hawaii Coffee Association; Kona Coffee Farmers Association; Ka‘u Mountain Farm; Kona Hills, LLC; Hawaii Coffee Growers Association; Kau Coffee Growers Cooperative; O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i; and two individuals.

Your Committee finds that Act 328, Session Laws of Hawaii 2012, established criminal penalties for false labeling of Hawaii-grown coffee. However, the enforcement on fraudulent Hawaii-grown roasted coffee was overlooked, which provides counterfeiters a competitive advantage that artificially creates downward price pressure for local growers. Because it is critical to continue maintaining the integrity of the State's coffee industry, this measure extends the offense of false labeling of Hawaii-grown coffee to roasted coffee, allowing legitimate producers of Hawaii-grown coffee a fair chance to compete in the market by offering high quality products grown in Hawaii.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 895 and recommends that it pass Third Reading.

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

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KARL RHOADS, Chair