Report Title:

Agriculture

Description:

Establishes the seal of quality for fresh and processed agricultural products program; establishes the Hawaii marketing alliance; establishes a special fund. (HB2630 HD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

2630

TWENTY-FIRST LEGISLATURE, 2002

H.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to a seal of quality for fresh and processed agricultural products program.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The purpose of this Act is to protect the integrity and value of the marketing cachet for "Hawaii" branded farm and value-added products. The Hawaii brand, whether it is marketed as a visitor destination, manufactured product, farm, or value-added product, drives Hawaii-based sales at value-added prices. In the case of Hawaii's fresh and value-added agricultural products, the marketplace is filled with goods that bear the label "Hawaii" or "Hawaiian" with no real substantiation of the origin and quality of the product. Unsuspecting visitors and residents perceive that they are purchasing a bona fide Hawaiian agricultural product.

The legislature finds that establishing a seal of quality for fresh and value-added agricultural products that meet high quality standards, are grown, manufactured, assembled, or fabricated in Hawaii, and which have a substantial amount of their wholesale value added by manufacture, assembly, fabrication, or production within the State will provide consumers with assurance in their product selection. Such a program complements section 486-119, Hawaii Revised Statutes, which requires fifty-one per cent of the wholesale value of a product be added by manufacture, assembly, fabrication, or production within the State to use the term "Made in Hawaii".

SECTION 2. Chapter 148, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . seal of quality

§148- Seal of quality program; established. There shall be established within the department of agriculture a seal of quality program, which may include a certificate of origin. This program shall establish an official seal of quality for fresh and processed agricultural products that are produced in Hawaii. The seal of quality may be in the form of seals, brands, labels, or trademarks.

§148- Hawaii marketing alliance; established. There shall be established the Hawaii marketing alliance, whose chairperson may enter into contracts with nonprofit corporations that have obtained exempt status pursuant to Internal Revenue Code section 501(c) and that have organizational documents that provide a cross-section of agricultural organizations, commodities and government representatives as members of the board of directors of the nonprofit corporation to engage in and achieve the following activities and tasks:

(1) Develop a seal of quality and origin for agricultural products grown, processed or manufactured in Hawaii;

(2) Develop standards and criteria for products grown, processed, or manufactured in Hawaii that must be satisfied in order to obtain the seal of quality and origin;

(3) Develop and implement marketing programs for products bearing the seal of quality and origin;

(4) Develop and implement licensing fees and programs for the seal of quality and origin program with the intent and goal that these fees and programs will enable the seal of quality and origin program to be economically viable and self-sufficient;

(5) Assist the department of agriculture in monitoring compliance and achieving compliance with the seal of quality and origin program; and

(6) Implement the rules adopted by the department of agriculture with respect to the seal of quality and origin.

§148- Rules. Subject to chapter 91, the department of agriculture may adopt rules with respect to:

(1) The definition of terms;

(2) The design of the seal of quality for identifying fresh or processed agricultural commodities that are produced in the state;

(3) The categories of fresh or processed agricultural commodities that are eligible to use the seal of quality;

(4) The minimum quality of fresh or processed agricultural commodities that are eligible to use the seal of quality;

(5) The minimum per cent of wholesale value added within the state to qualify for use of the seal of quality;

(6) The minimum packaging and labeling requirements for fresh or processed agricultural commodities using a seal of quality;

(7) The application forms for the license to use the seal of quality, and the information required to be included on the application forms;

(8) The assessment and collection of license fees for the use of the seal of quality which shall reasonably cover the costs of providing the service;

(9) The assessment and collection of charges for stickers, placards, and other promotional materials provided by the department of agriculture;

(10) Provisions for the appropriate use of the seal of quality, including use in advertisements;

(11) The recordkeeping requirements for parties licensed to use the seal of quality;

(12) The administrative penalties for the violation of this part and of rules adopted under this part; and

(13) The enforcement of this part and of rules adopted under this part.

§148- Prohibited acts. No person shall:

(1) Use a seal of quality established under this part without being licensed;

(2) Use a seal of quality on a fresh or processed agricultural commodity that does not meet the requirements of this part or rules adopted under this part;

(3) Use a device, symbol, indicia, or by any other means imitate the seal of quality established by this part; and

(4) Make any claim that a fresh or processed agricultural commodity is permitted to use a seal of quality when it is not.

§148- Administrative penalties. (a) The department of agriculture may, after notice and opportunity for hearing, revoke or suspend any license issued under this part or rules adopted under this part for any violation of this part or rules adopted under this part.

(b) The department of agriculture may, after notice and opportunity for hearing, fine any person who violates this part or any rule adopted under this part, not more than $1,000 for each separate offense. Each day or instance of violation shall constitute a separate offense. Any action taken to impose or collect the penalty provided for in this section shall be considered a civil action.

§148- Seal of quality special fund; disposition of fees and charges. There is established the seal of quality special fund to be administratively placed with the department of agriculture to administer and operate the seal of quality program. Legislative appropriations and money derived from license fees and charges for stickers, placards, and other promotional materials produced by the department of agriculture shall be deposited into the fund. Moneys in the fund shall be expended for materials, salaries, equipment, training, promotional and educational activities, and other costs related to providing the seal of quality program."

SECTION 3. This Act shall take effect upon its approval.