SB2905

SECTION 1. The legislature finds that more than ninety per cent of Hawai‘i's coffee farms are located on the island of Hawai‘i. For more than twenty-five years, Hawai‘i has been the only region in the world that statutorily regulates the uses of its geographic names, such as "Kona", "Maui", and "Ka‘ū", on labels of its specialty agricultural products. However, the statute requires that only ten per cent of the product originate in the geographic area indicated, which has directly damaged and degraded the reputation of world-famous Hawai‘i-grown coffees.

The legislature further finds that the State's restaurant and food industry have high demand for locally produced and processed coffee and may require additional time to adjust business operations in response to changes in food and labeling laws. The legislature also finds that adopting the tiered or phased-in approach to increasing the existing statutory labeling requirements, as provided by this Act, affords the restaurant and food industry ample opportunity to plan and adjust business operations in response to the new requirements, such as updating marketing and labeling materials, and providing advance notice to retailers and suppliers.

The purpose of this Act is to support Hawai‘i's coffee growers and local businesses by:

(1) Requiring disclosure on the label of coffee blends of the respective 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 specified proportions, proportions which increase annually by ten per cent until reaching the final proportion of fifty-one per cent coffee by weight from that geographic origin; and

(3) Appropriating moneys for inspection and detection technologies to aid the department of agriculture in the regulation of the authenticity of roasted Hawaii-grown coffee.

SECTION 2. Section 486-120.6, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows:

"(b) A listing of the geographic origins of the various Hawaii-grown coffees and the regional origins of the various coffees not grown in Hawaii that are included in a blend may be shown on the label. [~~If used, this~~] This list shall consist of the term "Contains:", followed by, in descending order of per cent by weight and separated by commas, the respective geographic origin or regional origin of the various coffees in the blend [~~that the manufacturer chooses to list~~]. Each geographic origin or regional origin [~~may~~] shall be preceded by the per cent of coffee by weight represented by that geographic origin or regional origin, expressed as a number followed by the per cent sign. The type size used for this list shall not [~~exceed~~] be less than half that of the identity statement. This list shall appear below the identity statement[~~, if included~~] on the front panel of the label.

(1) Use the identity statement specified in subsection (a)(1)(A) or similar terms in labeling or advertising unless the package of roasted or instant coffee contains one hundred per cent coffee from that one geographic origin;

(2) Use a geographic origin in labeling or advertising, including in conjunction with a coffee style or in any other manner, if the roasted or instant coffee contains less than [~~ten~~]:

(A) Ten per cent coffee by weight from that geographic origin[;], for the year 2022;

(B) Twenty per cent coffee by weight from that geographic origin, for the year 2023;

(D) Forty per cent coffee by weight from that geographic origin, for the year 2025; and

(E) Fifty-one per cent coffee by weight from that geographic origin, for the year 2026 and continuing thereafter;

(3) Use a geographic origin in labeling or advertising roasted or instant coffee, including advertising in conjunction with a coffee style or in any other manner, without disclosing the percentage of coffee used from that geographic origin as described in subsection (a)(1)(B) and (a)(2);

(4) Use a geographic origin in labeling or advertising roasted or instant coffee, including in conjunction with a coffee style or in any other manner, if the green coffee beans used in that roasted or instant coffee do not meet the grade standard requirements of rules adopted under chapter 147;

(5) Misrepresent, on a label or in advertising of a roasted or instant coffee, the per cent coffee by weight of any coffee from a geographic origin or regional origin[;] as defined in this chapter;

(6) Use the term "All Hawaiian" on a label or in advertising of a roasted or instant coffee if the roasted or instant coffee is not produced entirely from green coffee beans [~~produced in geographic origins defined in this chapter;~~] grown and processed in Hawaii;

(7) Use a geographic origin on the front label panel of a package of roasted or instant coffee other than in the trademark or in the identity statement as authorized in subsection (a)(1) and (2) unless one hundred per cent of the roasted or instant coffee contained in the package is from that geographic origin;

(8) Use more than one trademark on a package of roasted or instant coffee unless one hundred per cent of the roasted or instant coffee contained in the package is from that geographic origin specified by the trademark;

(9) Use a trademark that begins with the name of a geographic origin on a package of roasted or instant coffee unless one hundred per cent of the roasted or instant coffee contained in the package comes from that geographic origin or the trademark ends with words that indicate a business entity; or

(10) Print the identity statement required by subsection (a) in a smaller font than that used for a trademark that includes the name of a geographic origin pursuant to paragraph (7) and in a location other than the front label panel of a package of roasted or instant coffee."

SECTION 3. 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 2022-2023 for inspection and detection technologies to aid the department of agriculture in the regulation of the authenticity of roasted Hawaii-grown coffee.

The sum appropriated shall be expended by the department of agriculture for the purposes of this Act.

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2022.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2905
THIRTY-FIRST LEGISLATURE, 2022
STATE OF HAWAII