Bill Text: HI SB2103 | 2024 | Regular Session | Amended
Bill Title: Relating To Agriculture.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Introduced) 2024-02-16 - Report adopted; Passed Second Reading, as amended (SD 1) and referred to JDC/WAM. [SB2103 Detail]
Download: Hawaii-2024-SB2103-Amended.html
|
THE SENATE |
S.B. NO. |
2103 |
|
THIRTY-SECOND LEGISLATURE, 2024 |
S.D. 1 |
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO AGRICULTURE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
The legislature further finds that Hawaii-grown coffee is among the highest priced coffee sold anywhere in the world, largely due to the high cost of production and its reputation for outstanding quality. As such, the State's coffee industry is susceptible to fraud when less expensive coffees are falsely labeled as originating from Hawaii. Currently, state law imposes penalties for the false labeling (counterfeiting) of Hawaii-grown coffee in cherry and parchment form, but the fraud of coffee counterfeiting has been almost exclusively committed in roasted coffee products. Coffee counterfeiting undermines Hawaii's coffee farmers by misrepresenting an increase in supply, thereby creating downward price pressure and value depreciation in the marketplace. Additionally, further harm occurs when inferior products are introduced into the supply chain, thereby undermining Hawaii's hard-fought brand identity for high quality crops.
Moreover, the legislature believes that enforcement of coffee labeling laws is of paramount importance to their effectiveness, and that investment in enforcement will compound labeling requirements' effectiveness by enhancing its deterrent effect. As such, the legislature finds that a full-time position within the department of agriculture dedicated solely to the enforcement of labeling laws applicable to Hawaii's agricultural products will greatly improve brand integrity in the State.
Accordingly, the purpose of this Act is to deter coffee counterfeiting by:
(1) Expanding the application of the criminal offense of false labeling of Hawaii-grown coffee to include roasted coffee;
(2) Enhancing the penalties for the criminal offense of false labeling of Hawaii-grown coffee through the imposition of a mandatory fine for each offense; and
(3) Establishing a position within the department of agriculture for the purpose of labeling and packaging enforcement and inspection.
SECTION 2. Section 708-871.5, Hawaii Revised Statutes, is amended to read as follows:
"[[]§708-871.5[]] False labeling of Hawaii-grown coffee[.];
penalties. (1) A person commits the offense of false
labeling of Hawaii-grown coffee if the person knowingly transports,
distributes, advertises, sells, or possesses with the intent to sell
Hawaii-grown green coffee, cherry coffee, [or] parchment coffee, or
roasted coffee that is falsely labeled with regard to the geographic origin
of the Hawaii-grown coffee.
(2) For purposes of this section:
"Cherry coffee" means the unprocessed fruit of the coffee plant.
"Geographic origin" means the geographic areas designated as follows:
(a) Hamakua is the Hamakua district on the island of Hawaii, as designated by the State of Hawaii tax map;
(b) Hawaii is the State of Hawaii;
(c) Kau is the Kau district on the island of Hawaii, as designated by the State of Hawaii tax map;
(d) Kauai is the island of Kauai;
(e) Kona is the north Kona and south Kona districts on the island of Hawaii, as designated by the State of Hawaii tax map;
(f) Maui is the island of Maui;
(g) Molokai is the island of Molokai; and
(h) Oahu is the island of Oahu.
"Green coffee" means the agricultural commodity comprised of green coffee beans.
"Parchment coffee" means the dried product that remains when coffee cherries are processed by removing the coffee seeds from the pulp.
"Roasted coffee" means the product that results from heating the coffee cherry seeds to augment aroma and flavor.
(3) False labeling of Hawaii-grown coffee is a class C felony. In addition to any penalties imposed pursuant to section 706‑605, the court shall impose on any defendant convicted of false labeling of Hawaii-grown coffee a mandatory fine of $10,000 for each separate offense. The mandatory fine imposed shall not be suspended or waived."
SECTION 3. In accordance with section 9 of article VII of the Hawaii State Constitution and sections 37-91 and 37-93, Hawaii Revised Statutes, the legislature has determined that the appropriations contained in Act 164, Regular Session of 2023, and this Act will cause the state general fund expenditure ceiling for fiscal year 2024-2025 to be exceeded by $ or per cent. This current declaration takes into account general fund appropriations authorized for fiscal year 2024-2025 in Act 164, Regular Session of 2023, and this Act only. The reasons for exceeding the general fund expenditure ceiling are that:
(1) The appropriation made in this Act is necessary to serve the public interest; and
(2) The appropriation made in this Act meets the needs addressed by this Act.
SECTION 4. 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 2024-2025 to fund one full-time equivalent (1.0 FTE) measurements standards inspector (BU3, SR-19, Step C) position within the department of agriculture for the purpose of labeling and packaging enforcement and inspection.
The sum appropriated shall be expended by the department of agriculture for the purposes 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, 2040.
Report Title:
DOA; Roasted Coffee; False Labeling; Fines; Expenditure Ceiling; Appropriation
Description:
Expands the criminal offense of false labeling of Hawaii-grown coffee to include roasted coffee. Imposes a $10,000 fine for each separate offense of false-labeling of Hawaii-grown roasted coffee. Declares that the general fund expenditure ceiling is exceeded. Makes an appropriation for 1.0 FTE enforcement position within the Department of Agriculture. Takes effect 7/1/2040. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
