THE SENATE	S.B. NO.	263
THIRTY-FIRST LEGISLATURE, 2021		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO ECONOMIC DEVELOPMENT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

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. The department of business, economic development, and tourism shall oversee a "made in Hawaii" program for manufactured products. No person shall keep, offer, display or expose for sale, or solicit for the sale of any item, product, souvenir, or any other merchandise that is labeled "made in Hawaii" or that by any other means misrepresents the origin of the item as being from any place within the State, or uses the phrase "made in Hawaii" as an advertising or media tool for any craft 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; provided that the department of business, economic development, and tourism shall administer and oversee the "made in Hawaii" program with respect to manufactured products and the Hawaii technology development corporation shall hold ownership of the made in Hawaii with aloha trademark."

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; made in Hawaii with aloha trademark. (a) The Department of Agriculture shall oversee a "grown in Hawaii" program for agricultural products and manufactured products using Hawaii grown inputs. No person shall keep, offer, display or expose for sale, or solicit for the sale of any item, product, souvenir, or any other merchandise that is labeled ["made in Hawaii"] "grown in Hawaii" or that by any other means misrepresents the origin of the item as being from any place within the State, or uses 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) 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"] "grown 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"] "grown 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] grown 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.] or the input claimed to be grown within the State in the manufactured product uses not less than sixty per cent of the input claimed to be grown within the State; provided that the department of agriculture shall administer and oversee the "grown in Hawaii" program with respect to agricultural products."

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

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $150,000 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 Hawaii technology and development corporation to promote the made in Hawaii with aloha brand.

The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of section 1 of this Act.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2021.

Report Title:

Economic Development; Made in Hawaii Program; Grown in Hawaii Program; Appropriation

Description:

Transfers oversight of the "Made-in-Hawaii" program as it relates to manufactured products to the department of business, economic development, and tourism. Places the "Grown in Hawaii with Aloha" program under the management of the department of agriculture. Transfers ownership of the "Made in Hawaii with Aloha Trademark" from the department of agriculture to the Hawaii Technology Development Corporation. Appropriates $150,000 to the department of business, economic development, and tourism. (SD1)

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