Hawaii-2019-HB144-Amended

SECTION 1. The legislature finds that the production and sale of coffee is a major industry in the State, and coffee from Kona is world renowned. For more than twenty-five years, Hawaii 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 but requires that only ten per cent of the product originate in the geographic area indicated. The legislature is concerned that the low, ten per cent requirement may damage and degrade the reputation of world-famous Hawaii-grown coffees and the economic interests of Hawaii coffee farmers.

The legislature further finds that there has been contentious debate for decades regarding the labeling requirements for Kona coffee, including most notably, minimum percentage content. One of the contentious issues raised by those involved on both sides of this debate is that changing the labeling requirements will have a serious economic impact on the State's coffee farmers and industry. Based on this repeatedly discussed issue, the legislature finds that a neutral economic impact study should be completed to fully understand what economic impacts, if any, will result from changes to Hawaii's coffee labeling requirements, and a task force consisting of coffee industry representatives needs to be convened to propose appropriate legislative changes, if any, that are needed to address this matter.

The purpose of this Act is to support Hawaii's coffee growers by:

(1) Directing the university of Hawaii economic research organization to conduct a study to assess the economic impact on the local coffee industry from potential changes to coffee labeling laws; and

(2) Establishing a coffee labeling task force to review and assess the findings and recommendations of the study regarding the economic impact on the local coffee industry from potential changes to coffee labeling laws, develop proposed legislation to address the pertinent issues, and identify any related issues not addressed by state law.

SECTION 2. (a) The university of Hawaii economic research organization shall conduct a study to assess the economic impact on the local coffee industry from potential changes to coffee labeling laws.

(b) The university of Hawaii economic research organization shall consult with the department of agriculture and stakeholders in the coffee industry to establish the protocols to be used and factors to be addressed in the study.

(c) The university of Hawaii economic research organization shall complete the study no later than January 1, 2021, and shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature and the coffee labeling task force established by section 3 of this Act, no later than twenty days prior to the convening of the regular session of 2021.

SECTION 3. (a) There is established on July 1, 2020, a coffee labeling task force within the department of agriculture for administrative purposes to consist of the following members:

(1) The chairperson of the board of agriculture or the chairperson's designee, who shall serve as the chair of the task force;

(2) An economist from the university of Hawaii;

(3) A representative from the Hawaii Coffee Association;

(4) A representative from the Hawaii Coffee Growers Association;

(5) A representative from the Kona Coffee Council;

(6) A representative from the Kona Coffee Farmers Association;

(7) A representative from the Maui Coffee Association;

(8) A representative from the Kauai Coffee Company;

(9) A representative from Coffees of Hawaii (Molokai); and

(10) A representative from Waialua Coffee (Oahu).

(b) The task force shall review and assess the findings and recommendations of the economic impact study conducted pursuant to section 2 of this Act, develop proposed legislation to address the issues raised and identified in the findings and recommendations of the economic impact study, and identify any related issues not addressed by state law. The task force shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2022.

(c) The task force shall cease to exist after it has accomplished the purpose of this Act or twenty days prior to the convening of the regular session of 2022, whichever occurs first.

(d) No member of the task force shall be made subject to section 84-17, Hawaii Revised Statutes, solely because of that member's participation on the task force. The task force shall be exempt from chapter 92, Hawaii Revised Statutes.

(e) The members of the task force shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $250,000 or so much thereof as may be necessary for fiscal year 2019-2020 for the university of Hawaii economic research organization to conduct a study assessing the economic impact of potential changes to coffee labeling laws on the local coffee industry.

The sum appropriated shall be expended by the university of Hawaii for the purposes of this Act.

SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $100,000 or so much thereof as may be necessary for fiscal year 2020-2021 for the purposes of the coffee labeling task force established pursuant to this Act.

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

SECTION 6. This Act shall take effect on July 1, 2019.

HOUSE OF REPRESENTATIVES	H.B. NO.	144
THIRTIETH LEGISLATURE, 2019		H.D. 1
STATE OF HAWAII		S.D. 1