SB263 HD2

PART I

SECTION 1. Chapter 201, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§201- Hawaii manufactured products program oversight; "made in Hawaii with aloha" trademark. (a) The department of shall administer and oversee a "made in Hawaii" program for manufactured products and shall hold ownership of the "made in Hawaii with aloha" trademark.

(b) No person shall:

(1) Keep, offer, display or expose for sale, or solicit for the sale of any item, product, souvenir, or other merchandise that:

(A) Is labeled "made in Hawaii"; or

(B) By any other means, represents the origin of the item as being from any place within the State; or

(2) Use the phrase "made in Hawaii" as an advertising or media tool,

for any item that has not been manufactured, assembled, fabricated, or produced within the State and that has not had at least fifty-one per cent of its wholesale value added by manufacture, assembly, fabrication, or production within the State, including Hawaii-sourced goods, services, and intellectual property."

SECTION 2. Section 486-119, Hawaii Revised Statutes, is amended to read as follows:

"§486-119 [~~Hawaii-made products; Hawaii-processed products.~~] "Grown in Hawaii" program oversight. (a) The department of agriculture shall administer and oversee a "grown in Hawaii" program for agricultural products and manufactured products that use Hawaii-grown inputs.

[~~(a)~~] (b) No person shall [~~keep,~~]:

(1) Keep, offer, display or expose for sale, or solicit for the sale of any item, product, souvenir, perishable consumer commodity, or [~~any~~] other merchandise that [is]:

(A) Is labeled [~~"made in Hawaii"~~] "grown in Hawaii"; or [~~that by~~]

(B) By any other means [~~misrepresents~~], represents the origin of the item as being from any place within the State[,]; or [~~uses~~]

(2) Use the phrase [~~"made in Hawaii"~~] "grown in Hawaii" as an advertising or media tool,

for any [~~craft item~~] product that has not been [~~manufactured, assembled, fabricated, or produced~~] solely grown within the State [~~and~~] or that has not had at least [~~fifty-one~~] sixty per cent of its [~~wholesale value added by manufacture, assembly, fabrication, or production~~] inputs grown by a certified grown in Hawaii with aloha raw product within the State.

[~~(b) Subsection (a)~~] (c) Subsections (a) and (b) notwithstanding, no person shall keep, offer, display, expose for sale, or solicit the sale of any perishable consumer commodity that is labeled "made in Hawaii", "produced in Hawaii", or "processed in Hawaii" or that by any other means represents the origin of the perishable consumer commodity as being from any place within the State, or use the phrase "made in Hawaii", "produced in Hawaii", or "processed in Hawaii" as an advertising or media tool for any perishable consumer commodity, unless the perishable consumer commodity is wholly or partially manufactured, processed, or produced within the State from raw materials that originate from inside or outside the State and at least fifty-one per cent of the wholesale value of the perishable consumer commodity is added by manufacture, processing, or production within the State."

SECTION 3. The department of agriculture shall transfer ownership of the "made in Hawaii with aloha" trademark to the department of .

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2021-2022 and the same sum or so much thereof as may be necessary for fiscal year 2022-2023 for the oversight and administration of the "made in Hawaii" program and for the department of to promote the "made in Hawaii with aloha" brand.

The sums appropriated shall be expended by the department of for the purposes of section 1 of this part.

PART II

SECTION 5. Chapter 37, Hawaii Revised Statutes, is amended by adding a new section to part II to be appropriately designated and to read as follows:

"§37- Appropriations for marketing or advertising; consolidation of funding, expenditure, and strategy. (a) Any provision of law to the contrary notwithstanding, all moneys appropriated from any source for marketing or advertising activities for the department of agriculture; department of business, economic development, and tourism; or department of land and natural resources for marketing or advertising shall not be released or expended unless in accordance with this section; provided that this section shall not apply to the marketing or advertising activities of the Hawaii tourism authority.

(b) The chairperson of the board of agriculture or the chairperson's designee, the chairperson of the board of land and natural resources or the chairperson's designee, and the director of business, economic development, and tourism or the director's designee, with support from the administrator of the business development and support division of the department of business, economic development, and tourism, shall draft and publish a master plan for the expenditure of moneys appropriated to the respective departments for marketing or advertising. The department of business, economic development, and tourism shall submit the master plan to the legislature upon the plan's completion; provided that the plan shall be submitted no later than thirty days prior to the convening of the regular session of 2022.

(c) The chairperson of the board of agriculture or the chairperson's designee, the chairperson of the board of land and natural resources or the chairperson's designee, and the director of business, economic development, and tourism or the director's designee, with support from the administrator of the business development and support division of the department of business, economic development, and tourism, may update the master plan pursuant to subsection (b) as needed; provided that the department of business, economic development, and tourism shall submit the updated master plan, with a summary of the amendments made to the master plan, to the legislature no later than thirty days prior to the convening of the legislature's next regular session.

(d) The chairperson of the board of agriculture and the chairperson of the board of land and natural resources shall expend the moneys appropriated to their agencies for marketing or advertising only after obtaining the approval of the administrator of the business development and support division of the department of business, economic development, and tourism; provided that any expenditure shall be in accordance with the master plan.

(e) The administrator of the business development and support division of the department of business, economic development, and tourism may request, and the department of agriculture and the department of land and natural resources, as the case may be, shall transfer, moneys appropriated to the respective department for marketing or advertising to accounts designated by the administrator of the business development and support division of the department of business, economic development, and tourism for the purpose of consolidating and expending marketing or advertising appropriations.

(f) No later than thirty days prior to the convening of each regular session, the chairperson of the board of agriculture or the chairperson's designee, the chairperson of the board of land and natural resources or the chairperson's designee, the director of business, economic development, and tourism or the director's designee, and the administrator of the business development and support division of the department of business, economic development, and tourism shall jointly submit a report to the legislature on the expenditure of moneys appropriated pursuant to the master plan for marketing or advertising purposes. The report shall include:

(1) The target commodities or industries of any marketing or advertising campaign;

(2) The target populations of any marketing or advertising campaign;

(3) The target outcomes of any marketing or advertising campaign;

(4) The outcomes achieved by any marketing or advertising campaign;

(5) The impact on industry or markets as a result of any marketing or advertising campaign; and

(6) An evaluation of the master plan, which shall include:

(A) An evaluation of the master plan's relevance to the State's economic development and growth objectives;

(B) An analysis of whether the master plan is effective in meeting those objectives; and

(C) Any potential amendments to the master plan, taking into consideration the evaluation conducted pursuant to this paragraph.

(g) For the purposes of this section:

"Marketing or advertising" means any program appropriation contained in the general appropriations act, supplemental appropriations act, or any other law, that is to be expended to retain or expand an economic sector; provided that "marketing or advertising" shall not include the expenditure of public funds for public communications or press releases from state agencies.

"Master plan" means the marketing and advertising master plan required pursuant to subsection (b), as may be updated pursuant to subsection (c)."

SECTION 6. Chapter 171, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§171- Marketing and advertising activities. Any appropriations to the department for advertising or marketing shall be expended in accordance with section 37- ."

SECTION 7. Section 141-1, Hawaii Revised Statutes, is amended to read as follows:

"§141-1 Duties in general. The department of agriculture shall:

(1) Gather, compile, and tabulate, from time to time, information and statistics concerning:

(A) Entomology and plant pathology: Insects, scales, blights, and diseases injurious or liable to become injurious to trees, plants, or other vegetation, and the ways and means of exterminating pests and diseases already in the State and preventing the introduction of pests and diseases not yet here; and

(B) General agriculture: Fruits, fibres, and useful or ornamental plants and their introduction, development, care, and manufacture or exportation, with a view to introducing, establishing, and fostering new and valuable plants and industries;

(2) Encourage and cooperate with the agricultural extension service and agricultural experiment station of the University of Hawaii and all private persons and organizations doing work of an experimental or educational character coming within the scope of the subject matter of chapters 141, 142, and 144 to 150A, and avoid, as far as practicable, duplicating the work of those persons and organizations;

(3) Enter into contracts, cooperative agreements, or other transactions with any person, agency, or organization, public or private, as may be necessary in the conduct of the department's business and on [~~such~~] terms as the department may deem appropriate; provided that the department shall not obligate any funds of the State, except the funds that have been appropriated to the department. Pursuant to cooperative agreement with any authorized federal agency, employees of the cooperative agency may be designated to carry out, on behalf of the State the same as department personnel, specific duties and responsibilities under chapters 141, 142, 150A, and rules adopted pursuant to those chapters, for the effective prosecution of pest control and animal disease control and the regulation of import into the State and intrastate movement of regulated articles[;]. Any contracts, cooperative agreements, or other transactions conducted pursuant to this paragraph for advertising or marketing shall be done in accordance with section 37- ;

(4) Secure copies of the laws of other states, territories, and countries, and other publications germane to the subject matters of chapters 141, 142, and 144 to 150A, and make laws and publications available for public information and consultation;

(5) Provide buildings, grounds, apparatus, and appurtenances necessary for the examination, quarantine, inspection, and fumigation provided for by chapters 141, 142, and 144 to 150A; for the obtaining, propagation, study, and distribution of beneficial insects, growths, and antidotes for the eradication of insects, blights, scales, or diseases injurious to vegetation of value and for the destruction of injurious vegetation; and for carrying out any other purposes of chapters 141, 142, and 144 to 150A;

(6) Formulate and recommend to the governor and legislature additional legislation necessary or desirable for carrying out the purposes of chapters 141, 142, and 144 to 150A;

(7) Publish at the end of each year a report of the expenditures and proceedings of the department and of the results achieved by the department, together with other matters germane to chapters 141, 142, and 144 to 150A and that the department may deem proper;

(8) Administer a program of agricultural planning and development, including the formulation and implementation of general and special plans, including but not limited to the functional plan for agriculture; administer the planning, development, and management of the agricultural park program; plan, construct, operate, and maintain the state irrigation water systems; review, interpret, and make recommendations with respect to public policies and actions relating to agricultural land and water use; assist in research, evaluation, development, enhancement, and expansion of local agricultural industries; and serve as liaison with other public agencies and private organizations for the above purposes. In the foregoing, the department shall act to conserve and protect agricultural lands and irrigation water systems, promote diversified agriculture, increase agricultural self-sufficiency, and ensure the availability of agriculturally suitable lands; and

(9) Manage, administer, and exercise control over any public lands, as defined under section 171-2, that are designated important agricultural lands pursuant to section 205-44.5, including but not limited to establishing priorities for the leasing of these public lands within the department's jurisdiction."

SECTION 8. Section 201-3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"[[](a)[]] Without prejudice to its general functions and duties, the department of business, economic development, and tourism shall have specific functions in the following areas:

(1) Industrial development. The department shall:

(A) Determine through technical and economic surveys the profit potential of new or expanded industrial undertakings;

(B) Develop through research projects and other means new and improved industrial products and processes;

(C) Promote studies and surveys to determine consumer preference as to design and quality and to determine the best methods of packaging, transporting, and marketing the State's industrial products;

(D) Disseminate information to assist the present industries of the State, to attract new industries to the State, and to encourage capital investment in present and new industries in the State;

(E) Assist associations of producers and distributors of industrial products to introduce these products to consumers; and

(F) Make grants or contracts as may be necessary or advisable to accomplish the foregoing;

(2) Land development. The department shall:

(A) Encourage the most productive use of all land in the State in accordance with a general plan developed by the department;

(B) Encourage the improvement of land tenure practices on leased private lands;

(C) Promote an informational program directed to landowners, producers of agricultural and industrial commodities, and the general public regarding the most efficient and most productive use of the lands in the State; and

(D) Make grants or contracts as may be necessary or advisable to accomplish the foregoing;

(3) Credit development. The department shall:

(A) Conduct a continuing study of agricultural and industrial credit needs;

(B) Encourage the development of additional private and public credit sources for agricultural and industrial enterprises;

(C) Promote an informational program to acquaint financial institutions with agricultural and industrial credit needs and the potential for agricultural and industrial expansion, and inform producers of agricultural and industrial products as to the manner in which to qualify for loans; and

(D) Make grants or contracts as may be necessary or advisable to accomplish the foregoing;

(4) Promotion. The department shall:

(A) Disseminate information developed for or by the department pertaining to economic development to assist present industry in the State;

(B) Attract new industry and investments to the State; [~~and~~]

(D) Review, amend, request modifications to, approve, or reject marketing or advertising strategies, projects, contracts, and expenditures of the department of agriculture and department of land and natural resources, as deemed necessary by the legislature by law.

The industrial and economic promotional activities of the department may include the use of literature, advertising, demonstrations, displays, market testing, lectures, travel, motion picture and slide films, and other promotional and publicity devices as may be appropriate[;]. Any expenditures made pursuant to this paragraph shall be done in accordance with section 37- ; and

(5) Self-sufficiency standard. The department shall establish and update biennially a self-sufficiency standard that shall incorporate existing methods of calculation, and shall reflect, at a minimum, costs relating to housing, food, child care, transportation, health care, clothing and household expenses, federal and state tax obligations, family size, children's ages, geography, and the number of household wage earners. The department shall report to the legislature concerning the self-sufficiency standard no later than twenty days prior to the convening of the regular session of 2009, and every odd-numbered year thereafter. The recommendations shall address, among other things, the use of any federal funding that may be available for the purposes of establishing and updating the self-sufficiency standard."

SECTION 9. Any provision of law to the contrary notwithstanding, all moneys appropriated for marketing or advertising purposes to the department of agriculture and the department of land and natural resources pursuant to the general appropriations act or supplemental appropriations act for fiscal biennium 2021-2023 shall not be released or expended:

(1) Unless the administrator of the business development and support division of the department of business, economic development, and tourism has reviewed and approved the marketing plan and contract to be funded by the appropriated funds; and

(2) Until after the initial marketing and advertising master plan required pursuant to section 5 of this part is published and submitted to the legislature.

PART III

SECTION 10. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 11. This Act shall take effect on July 1, 2050.

THE SENATE	S.B. NO.	263
THIRTY-FIRST LEGISLATURE, 2021		S.D. 2
STATE OF HAWAII		H.D. 2