STAND. COM. REP. NO. 2888

Honolulu, Hawaii

RE: S.B. No. 2888

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 2888, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ECONOMIC DEVELOPMENT,"

begs leave to report as follows:

The purpose and intent of this measure is to allow cottage food operations to sell cottage food products, under certain conditions, upon receiving a permit from the Department of Health.

Your Committee received testimony in support of this measure from one member of the Hawai‘i County Council; Hawai‘i Farm Bureau; Hawaiian Goodness, LLC; Every One Grows; Hawai‘i Alliance for Progressive Action; Hawaii Food Industry Association; Sally Jane's Sweets and Savories; Institute for Justice; and six individuals. Your Committee received testimony in opposition to this measure from the Hawaii Association for Justice. Your Committee received comments on this measure from the Grassroot Institute of Hawaii.

Your Committee finds that there is great interest in small—scale cottage food operations in the State. These homemade food entrepreneurs are preferred by many consumers who are mindful about sourcing food responsibly, finding healthy eating options, and supporting their local community members who produce these foods. However, the State's existing regulatory framework creates numerous challenges for entrepreneurs, especially for those in rural areas who do not have access to commercial or certified kitchens. This measure allows cottage food operations to sell directly to consumers under certain conditions and upon approval by the Department of Health.

Your Committee has amended this measure by:

(1) Inserting an effective date of January 1, 2023; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2888, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2888, S.D. 2.

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

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ROSALYN H. BAKER, Chair