SB346 HD1

SECTION 1. The purpose of this Act is to improve the regulation of egg production and sales to protect the health and welfare of consumers, promote food safety, advance animal welfare, and protect against the negative fiscal effects on the State associated with the lack of effective regulation of egg production and sales.

SECTION 2. Chapter 147, Hawaii Revised Statutes, is amended by adding two new sections to part V to be appropriately designated and to read as follows:

"§147-A United States Department of Agriculture certified cage free grademark or seal; sale of shell eggs in the State. (a) Beginning January 1, 2028, notwithstanding any other provision of law to the contrary, it shall be unlawful for a farm owner or operator, or a business owner or operator, to sell or offer for sale for human consumption any shell egg in the State that has not been certified by the United States Department of Agriculture as being cage free, as evidenced by the United States Department of Agriculture grademark or shield indicating that the shell egg is certified cage free.

(b) This section shall not apply to:

(1) Commercial caged premises with a table-egg layer flock of less than seventy-five thousand egg-laying hens;

(2) Commercial cage free premises with a table-egg layer flock of less than seventy-five thousand egg-laying hens; or

(3) A business owner or operator who knowingly purchases any shell egg generated from a commercial premises that is exempt from this section.

(c) Any person who violates any provision of this section shall be subject to a fine in an amount not less than $500 and not to exceed $1,000 per violation.

(d) In addition to the penalties listed in subsection (c), a violation of subsection (a) shall be considered an unfair method of competition and unfair or deceptive trade practice under chapter 481A, upon which any person may bring an action.

(e) The department of agriculture shall adopt rules pursuant to chapter 91 necessary for the purposes of this section.

(f) As used in this section:

"Business owner or operator" means any person who owns or controls the operations of a business.

"Egg-laying hen" means a female domesticated chicken kept for the purpose of commercial egg production.

"Farm owner or operator" means any person who owns or controls the operations of a farm.

"Sale" means a commercial sale by a business that sells any item covered by this section, but does not include any sale undertaken at an establishment at which mandatory inspection is maintained under the Federal Egg Products Inspection Act (21 U.S.C. section 1031, et seq.).

"Shell egg" means a whole egg of an egg-laying hen in its shell form that is intended for use as human food.

"Table-egg layer" shall have the same meaning as contained in title 9 Code of Federal Regulations section 146.21.

§147-B Cage free matching grant program; establishment. (a) There is established the cage free matching grant program within the department to provide farm owners or operators and business owners or operators with matching grants to assist the farm owner or operator or business owner or operator in converting their operations to meet the cage free certification requirements under section 147-A.

(b) The department shall receive and review grant applications and award grants to qualifying farm owners or operators and business owners or operators.

(c) No funds shall be made available or provided under the cage free matching grant program unless matched dollar for dollar with funds provided by the qualifying farm owner or operator or business owner or operator.

(d) The department of agriculture shall adopt rules pursuant to chapter 91 establishing requirements and procedures necessary for implementing the cage free matching grant program."

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 the cage free matching grant program established by section 147‑B, Hawaii Revised Statutes.

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

SECTION 4. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 5. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 6. New statutory material is underscored.

SECTION 7. This Act shall take effect upon its approval and shall be repealed on June 30, 2032; provided that:

(1) Section 3 of this Act shall take effect on July 1, 2022; and

(2) Section 147-B, Hawaii Revised Statutes, shall be repealed on June 30, 2027.

Report Title:

USDA Grademark; USDA Shield; Sale of Shell Eggs; Certified Cage Free; Cage Free Matching Grant Program; Appropriation

Description:

Effective 1/1/2028, makes it unlawful for farm owners or operators and business owners or operators to sell or offer for sale any shell egg in the State that is not USDA certified cage free, as evidenced by a USDA certified cage free grademark or shield. Exempts certain commercial table-egg layer premises. Establishes the cage free matching grant program until 6/30/2027. Establishes penalties. Requires DOA to establish rules. Appropriates funds. Repeals on 6/30/2032. (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

THE SENATE	S.B. NO.	346
THIRTY-FIRST LEGISLATURE, 2021		S.D. 2
STATE OF HAWAII		H.D. 1