STAND. COM. REP. NO. 115-20

Honolulu, Hawaii

, 2020

RE: H.B. No. 1886

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Agriculture, to which was referred H.B. No. 1886 entitled:

"A BILL FOR AN ACT RELATING TO COFFEE LABELING,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Require coffee blend labels to disclose geographic and regional origins and percent by weight of the blended coffees;

(2) Prohibit using geographic origins of coffee in labeling or advertising for roasted or instant coffee that contains less than 51 percent coffee by weight from that geographic origin; and

(3) Prohibit use of the term "All Hawaiian" in labeling or advertising for roasted or instant coffee not produced entirely from green coffee beans grown and processed in Hawaii.

Your Committee received testimony in support of this measure from one member of the Hawai‘i County Council; Athena of Hawai‘i LLC; Absolute Palate LLC; Monk's Delight Kona Coffee; Rancho Aloha Kona Coffee; Cassandra Farms; Kona Mountain Coffee; Huahua Farm; We Are One, Inc.; Konalicious Organic Coffee; Morning Glory Farms LLC; Smithfarms.com; Honalo Farm; Mahina Mele Farms LLC; South Kona Farms; and twenty individuals. Your Committee received comments on this measure from the Department of Agriculture and Kona Coffee Farmers Association.

Your Committee finds that existing labeling requirements for coffee cause consumers to falsely believe that a package of coffee blend contains coffee exclusively from Kona or other regions in Hawaii. In reality, ninety percent of the package could be from other regions of the world. Therefore, immediate legislative action is necessary to protect the reputation of Hawaii-grown coffees as premier, specialty coffees from further degradation.

Your Committee has amended this measure by:

(1) For coffee blend labels, allowing a list of foreign-grown coffee, with percentages of foreign-grown coffee by weight, to be shown on the label in lieu of the separate listing of regional origins of coffee not grown in Hawaii;

(2) Phasing in the minimum percentage of coffee requirement for the use of a geographic origin in labeling or advertising of roasted or instant coffee blends as follows:

(A) From July 1, 2020, through June 30, 2021, a minimum of 20 percent coffee by weight from that geographic origin;

(B) From July 1, 2021, through June 30, 2022, a minimum of 30 percent coffee by weight from that geographic origin; and

(3) Changing the effective date to July 1, 2150, to encourage further discussion; and

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

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 H.B. No. 1886, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1886, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

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

____________________________

RICHARD P. CREAGAN, Chair