HomeMy WebLinkAboutCOM 0998.001 2012-2014 BRENDA I FORD .y:of N\ , _
Phone: (808) 323 4277
Council Member i � -''�
-'fit=_ Fax: (808) 329- 4786
District 6 - Portion of North �+j:� ,;:',;
Kona, South Kona, Ka`u, & . ,.!OF`N�'�' E-Mail: bford @co.hawaii.hi.us
Greater Volcano Area
HAWAII COUNTY COUNCIL
County of Hawaii
West Hawaii Civic Center
74-5044 Ane Keohokalole Hwy.
Kailua-Kona, Hawaii 96740
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DATE: September 25, 2014 --0
TO: J Yoshimoto, Chairperson, -
and Members of the Hawai`i County Council -
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FROM: renda J. Ford, Council Member w =_r
SUBJECT: Proposed Amendment To Resolution No. 501-14 Requesting The Hawai`i State
Legislature To Adopt Provisions For Truth-In-Labeling For Hawai`i-Grown Coffees.
Please find attached a proposed Draft 2 for Resolution No. 501-14. As the proposed amendments
to Resolution No. 501-14 are significant in volume and would be difficult to communicate by
way of Ramseyer format to the Committee on Agriculture, Water, and Energy Sustainability, I
will be making a motion to amend Resolution No. 501-14 by substitution, to replace the current
version with the draft attached hereto.
Robert's Rules of Order provides for a motion to amend by substitution per §12(3)(b). A motion
to amend by substitution can be utilized to "introduce a different or better approach to the real
question raised by a main motion."
BJF/
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COMM. • • •
Ref.To: I' L
Ref.Date • 1 t
Serving the Interests of the People of Our Island
Hawai`i County Is An Equal Opportunity Provider And Employer
A RESOLUTION REQUESTING THE HAWAII STATE LEGISLATURE TO ADOPT
PROVISIONS FOR TRUTH-IN-LABELING FOR HAWAII-GROWN COFFEES.
WHEREAS, the State of Hawai`i is the only place in the United States that can grow coffee
for commercial purposes; and
WHEREAS, of the approximately 1,100 coffee farmers statewide, approximately 1,000 are
on the Island of Hawai`i; and
WHEREAS, all coffee growing regions in the State of Hawai`i are negatively impacted if
Hawai`i-grown coffees or coffee blends do not maintain high quality and excellent taste or receive
negative cupping scores or publicity; and
WHEREAS, 100%Hawai`i-grown coffees have a worldwide reputation as a premier coffee
and for its distinctive and rich flavor; and
WHEREAS, "truth-in-labeling" means honest and "full-disclosure" of the material facts -
specifically including the geographic origin and percentage of all coffees in a geographically-
identified coffee blend; and
WHEREAS, it is inherently deceptive and misleading to label coffee as a geographically-
identified blend (such as "Hamakua Blend" or"Ka'u Blend" or"Kona Blend") unless at least a
majority (51%) of the coffee is from that region; and
WHEREAS, the following attempts have been made to provide the consumers of Hawai`i -
grown coffees sufficient and material information to make an informed decision regarding their
potential purchase of Hawai`i-grown coffees:
June 13, 1986, the Governor vetoed House Bill 2142 (HSCR 472-, SSCR 711-86)
which required a minimum of ten percent Kona coffee in the blend to use the "Kona" name
on the package and required any person involved with roasting, handling, processing,
selling, blending, packaging, or labeling any Kona coffee or Kona coffee blend to keep and
make available for inspection records of quantities of coffees received versus quantities
shipped, and required the director of measurement standards to enforce the rules; and
In 1990, the Hawai`i County Council on Economic Development sought State
legislation protecting the interests of Hawai`i County farmers by requiring that at least 51%
of a blend should be Kona before it could be labeled as a "Kona blend" but the Council's
position was sharply opposed by Honolulu's largest blender, Superior Tea and Coffee (a C.
Brewer company); and
June 19, 1991, after the Legislature had disregarded the request of the Hawai`i
County Council on Economic Development, the Governor approved Senate Bill 0154
(SSCR 535, HSCR 1210) which allowed the use of the names of Hawai`i-grown coffees
on blends with as little as 10% genuine content. Kona coffee grower Tom Greenwell
called the standard "false advertising" because it allowed Kona coffee beans to be mixed
with low-grade beans, twigs and other debris. Another Kona coffee grower, Michael
Craig, described the misuse of the name "Kona" as a misuse of the cultural heritage of
Hawai`i; and
May 26, 2006, the Hawai`i State Democratic Party adopted a resolution
recommending truth-in-labeling measures for Kona coffee; and
December 20, 2006, the Hawai`i County Council adopted Resolution No. 18-06
requesting the Hawai`i State Legislature to revise and clarify Hawaii Revised Statutes
Section 486-120.6 and recommend that any coffee labeled "Kona Coffee Blend" shall have a
minimum of 75% Kona coffee and shall be labeled accordingly; and
January 18, 2007, House Bill No. 72, which incorporated the recommendations of
Resolution No. 18-06, was introduced in the State House of Representatives, and on
January 19, 2007, an identical bill (Senate Bill No. 661) was introduced in the State
Senate; and
January 2007, the Hawai`i State Democratic Party made House Bill No. 72 and
Senate Bill No. 661 part of the Party's legislative package; and
April 27, 2007, the Hawaii State Legislature adopted Senate Concurrent Resolution
No. 102, SDI, HD1, which stated, in part, the following:
1. Existing labeling requirements for Kona coffee causes consumer fraud.
2. Existing labeling requirements for Kona coffee degrades the "Kona coffee"
name.
3. Confusion as to the difference between Kona coffee and Kona coffee blends
caused Consumer Reports magazine to rate Kona coffee as "second rate"; and
May 3, 2014, the Hawai`i County Democratic Party Convention adopted Resolution
No. 8 requiring a minimum of 51% origin product in all coffee grown in Hawai`i labeled
with a Hawai`i origin and adopted Resolution No. 12 requiring a minimum of 51% Kona-
grown coffee in any coffee package labeled as a "Kona Blend" and prominent identification
on the label stating the country or region of origin of the non-Kona portion. On May 24,
2014, after having been read a letter in opposition from the president of Hawai`i's largest
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coffee blending company, the delegates to the State Democratic Party Convention declined to
adopt these Hawai`i County resolutions; and
WHEREAS, there is no opposition to the practice often used by coffee roasters to blend
various roasts or various origins to create unique flavor profiles; however, the basic principles of
consumer protection and fair marketing are violated when blenders mislead consumers by using an
geographic-origin name ("Ka'u", "Maui" or"Kona") in the name of a blend that contains only a
small percentage of coffee grown in that region. Blending is fine; deceptive labeling of blends is not;
and
WHEREAS, nowhere on the labels of 10% Hawai`i coffee blends are consumers advised
that 90%of the coffee in the packages is imported, foreign-grown coffee or may be a mixture of
multiple Hawaiian regions and foreign-grown coffee; and
WHEREAS, not identifying the origin of the 90%portion of a coffee blend is inherently
deceptive to consumers who are often erroneously led to believe that the entire amount of coffee in
the package is a coffee blend of many Kona farms' or another Hawaiian region's coffee; and
WHEREAS, the Hawai`i State Legislature has not protected the regional coffees grown in
the state of Hawai`i; and
WHEREAS, Hawai`i is the only region anywhere in the world that authorizes by law the
use of its geographic names ("Kona", "Ka'u", "Hamakua") on labels of its specialty agriculture
products with only 10% genuine contents; and
WHEREAS, it is essential that the Hawai`i State Legislature act immediately to stop the
consumer fraud, deception, and confusion that continues due to existing labeling requirements
for Hawai`i-grown coffees of any region or district; and
WHEREAS, the blenders currently gain immense excess profits from using cheaper
commodity coffees from other areas of the world (Viet Nam, Mexico, Panama, Africa, Brazil,
etc.)to fill 90% of the coffee blend, and those excess profits benefit the Mainland corporate
owners of Hawaii blending companies and do not benefit Hawaii coffee farmers; and
WHEREAS, to protect the consumers by providing genuine "truth-in-labeling" and
"full-disclosure", the Hawaii Revised Statutes §486-120.6 (b) needs to be amended as indicated
in Exhibit A, attached; and
WHEREAS, only disclosing the 10%portion on the label of blended coffee is deceptive.
For consumer protection and information, the majority portion of the package should be listed on
the front label first followed by the next largest portion of the contents and its percentage
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followed by the next lowest portion, et cetera in the same font size required for the identity
statement in HRS 486-120-6(a)(3). For example:
"51% Ka'u Coffee,
49% Vietnamese Coffee (This could also be stated as "Foreign-grown" coffee.)"
Or
"51% Hamakua Coffee,
45% Mexican Coffee,
4% other Hawai`i-Grown Coffees"; and
WHEREAS, immediate legislative action is necessary to protect the reputation of Hawai`i-
grown coffees as premier, specialty coffees from further degradation; now, therefore,
BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII that
the Hawai`i State Legislature is requested to schedule committee hearings, give floor consideration,
and adopt into law provisions for truth-in-labeling for Hawai`i-grown coffees providing:
(I) For the use of a Hawai`i geographic-origin name in the labeling or advertising of a
coffee blend only if the coffee blend contains at least 51%from that origin; and
(2) A change from voluntary to mandatory of the current provisions of HRS 486-
120.6(b) as recommended above to provide for full and genuine identification on
the front panel of the geographic origin of all coffee contained in any coffee blend
using a Hawai`i geographic origin name.
BE IT FINALLY RESOLVED that the County Clerk shall forward copies of this resolution
to the Honorable Mayor William P. Kenoi, the Hawaii County Department of Research and
Development, the Honorable Governor Neil S. Abercrombie, the Hawai`i State Department of
Business, Economic Development and Tourism, and all members of the Hawai`i State Senate and
House of Representatives.
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Exhibit A
§486-120.6 Hawaii-grown roasted or instant coffee; labeling requirements.
(a) In addition to all other labeling requirements, the identity statement used for labeling or
advertising roasted or instant coffee produced in whole or in part from Hawaii-grown green
coffee beans shall meet the following requirements:
(1) For roasted or instant coffee that contains one hundred per cent Hawaii-grown
coffee by weight the identity statement shall consist of either:
(A) The geographic origin of the Hawaii-grown coffee, in coffee consisting of
beans from only one geographic origin, followed by the word "Coffee";
provided that the geographic origin may be immediately preceded by the
term "100%"; or
(B) The per cent coffee by weight of one of the Hawaii-grown coffees, used in
coffee consisting of beans from several geographic origins, followed by
the geographic origin of the weight-specified coffee and the terms
"Coffee" and "All Hawaiian";
(2) For roasted or instant coffee consisting of a blend of one or more Hawaii-grown
coffees and coffee not grown in Hawaii, the per cent coffee by weight of one of
the Hawaii-grown coffees used in the blend, followed by the geographic origin of
the weight-specified coffee and the term "Coffee Blend"; and
(3) Each word or character in the identity statement shall be of the same type size
and shall be contiguous. The smallest letter or character of the identity statement
on packages of sixteen ounces or less net weight shall be at least one and one-half
times the type size required under federal law for the statement of net weight or
three-sixteenths of an inch in height, whichever is smaller. The smallest letter or
character of the identity statement on packages of greater than sixteen ounces net
weight shall be at least one and one-half times the type size required under federal
law for the statement of net weight. The identity statement shall be conspicuously
displayed without any intervening material in a position above the statement of
net weight. Upper and lower case letters may be used interchangeably in the
identity statement.
(b) A listing of the geographic origins of the various Hawaii-grown coffees and the regional
origins of the various coffees not grown in Hawaii that are included in a blend [may] shall be
shown on the label. [If used, this] This list shall consist of the term "Contains:", followed by, in
descending order of per cent by weight and separated by commas, the respective geographic
origin or regional origin of the various coffees in the blend [that the manufacturer chooses to
list]. Each geographic origin or regional origin [may] shall be preceded by the per cent of coffee
by weight represented by that geographic origin or regional origin, expressed as a number
followed by the per cent sign. The type size used for this list shall not [exceed] be less than half
that of the identity statement. This list shall appear below the identity statement [,, ice] on
the front panel of the label.
(c) It shall be a violation of this section to:
(1) Use the identity statement specified in subsection (a)(1)(A) or similar terms in
labeling or advertising unless the package of roasted or instant coffee contains one
hundred per cent coffee from that one geographic origin;
(2) Use a geographic origin in labeling or advertising, including in conjunction with a
coffee style or in any other manner, if the roasted or instant coffee contains less
than [ten] fifty-one per cent coffee by weight from that geographic origin;
(3) Use a geographic origin in advertising roasted or instant coffee, including
advertising in conjunction with a coffee style or in any other manner, without
disclosing the percentage of coffee used from that geographic origin as described
in subsection (a)(1)(B) and (a)(2);
(4) Use a geographic origin in labeling or advertising roasted or instant coffee,
including in conjunction with a coffee style or in any other manner, if the green
coffee beans used in that roasted or instant coffee do not meet the grade standard
requirements of rules adopted under chapter 147;
(5) Misrepresent, on a label or in advertising of a roasted or instant coffee, the per
cent coffee by weight of any coffee from a geographic origin or regional origin;
(6) Use the term "All Hawaiian" on a label or in advertising of a roasted or instant
coffee if the roasted or instant coffee is not produced entirely from green coffee
beans produced in geographic origins defined in this chapter;
(7) Use a geographic origin on the front label panel of a package of roasted or instant
coffee other than in the trademark or in the identity statement as authorized in
subsection (a)(1) and (2) unless one hundred per cent of the roasted or instant
coffee contained in the package is from that geographic origin;
(8) Use more than one trademark on a package of roasted or instant coffee unless one
hundred per cent of the roasted or instant coffee contained in the package is from
that geographic origin specified by the trademark;
(9) Use a trademark that begins with the name of a geographic origin on a package of
roasted or instant coffee unless one hundred per cent of the roasted or instant
coffee contained in the package comes from that geographic origin or the
trademark ends with words that indicate a business entity; or
(10) Print the identity statement required by subsection (a) in a smaller font than that
used for a trademark that includes the name of a geographic origin pursuant to
paragraph (7) and in a location other than the front label panel of a package of
roasted or instant coffee.
(d) Roasters, manufacturers, or other persons who package roasted or instant coffee covered
by this section shall maintain, for a period of two years, records on the volume and geographic
origin or regional origin of coffees purchased and sold and any other records required by the
department for the purpose of enforcing this section. Authorized employees of the department
shall have access to these records during normal business hours.
(e) For the purpose of this section:
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"Geographic origin" means the geographic regions in which Hawaii-grown green coffee beans
are produced, as defined in rules adopted under chapter 147; provided that the term "Hawaiian"
may be substituted for the geographic origin "Hawaii".
"Per cent coffee by weight" means the percentage calculated by dividing the weight in pounds of
roasted green coffee beans of one geographic or regional origin used in a production run of
roasted or instant coffee, by the total weight in pounds of the roasted green coffee beans used in
that production run of roasted or instant coffee, and multiplying the quotient by one hundred.
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