The bill aims to extend the existing penalties for false labeling to include roasted coffee products, thereby imposing a class C felony charge and a $10,000 fine for each separate offense. This measure intends to deter fraudulent practices that misrepresent coffee's geographical origin, which can lead to an artificial expansion of supply and decrease in market value for legitimate Hawaii-grown coffee. Such legal enhancements are crucial for safeguarding both economic stability and the international reputation of Hawaii's coffee.
Summary
Senate Bill 2906, relating to agriculture, primarily focuses on fortifying protections for Hawaii's crucial coffee industry, which is considered the state’s second highest value agricultural crop, valued at approximately $98 million annually. The bill addresses significant concerns regarding the fraudulent labeling of Hawaii-grown coffee. It identifies the threat posed by the counterfeiting of Hawaiian coffee, particularly in its roasted form, which has not previously been subject to stringent penalties, resulting in economic detriment for local farmers and producers who rely on the integrity of the state's coffee branding.
Contention
Supporters of SB 2906 contend that expanding labeling protections is vital for the sustainability and profitability of Hawaii’s coffee producers. They emphasize the need for robust deterrents against fraud to uphold the quality and reputation of Hawaii-grown coffee on a global scale. Conversely, there might be concerns regarding the enforcement of such measures and their potential impacts on small local businesses, particularly in areas of compliance and burden of proof for producers. The discussion around these issues reflects a balance between protecting local industries and ensuring fair market practices.