STAND. COM. REP. NO. 658-20

Honolulu, Hawaii

, 2020

RE: H.B. No. 1886

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1886, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to support Hawaii's coffee growers by:

(1) Requiring disclosure on the label of coffee blends of the respective geographic and regional origins and per cent by weight of the blended coffees;

(2) Making it a violation of the coffee labeling law to use a geographic origin in labeling or advertising for roasted or instant coffee blends that contain less than a certain percentage of coffee by weight from that geographic origin, phased in to a minimum of fifty-one percent; and

(3) Prohibiting 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 the Department of Agriculture; Kona Chapter of the Hawaii Farmers Union United; Kona Coffee Farmers Association; Cassandra Farms; LavaRock Farm; Absolute Palate LLC; Lions Gate Farms; Bea's Knees Farm; Hawaii County Committee of the Democratic Party of Hawaii; Hawaii Coffee Association; Kona Coffee Farmers Association; Pele Lani Farm LLC; Athena of Hawaii LLC; Hawaii Tropical Fruit Growers; Apollo Kauai, Zero Waste Kauai; Malama Kauaa; Kona Lisa Coffee; We Are One, Inc.; Aloha Breeze Kona Coffee; A‘a Li‘i Farm; and numerous individuals. Your Committee received testimony in opposition to this measure from Hawaii Teamsters & Allied Workers Local 996; Kona Coffee Council; Kaiwi Farms; Hawaii Coffee Company; Hawaii Restaurant Association; HKCC, LLC; and two individuals.

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 and preserve specialty coffees from further degradation.

Your Committee has amended this measure by:

(1) Including Hawaii-grown green coffee, cherry coffee and parchment coffee in the coffee labeling requirements;

(2) Appropriating funds for the Department of Agriculture to administer the coffee labeling requirements program; and

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

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1886, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Judiciary in the form attached hereto as H.B. No. 1886, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

ROY M. TAKUMI, Chair