THE SENATE	S.B. NO.	516
THIRTY-SECOND LEGISLATURE, 2023		S.D. 1
STATE OF HAWAII		H.D. 2

A BILL FOR AN ACT

 

 

RELATING TO HEMP.

 

 

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

 

     SECTION 1.  The legislature finds that hemp is a high-value crop that has the potential to bring significant and diverse revenues to Hawaii, be a lucrative crop for Hawaii farmers, and support food security for the State.  Hemp has over fifty thousand recognized uses including as fuel; food, including the seeds, oil, juice from leaves, and herbal tinctures; and fiber used in supercapacitors, cloth, building materials, and bioplastic.  Many Hawaii farms subsidize food production with non­farming income or jobs.  Hemp could provide farm-based income for farmers to expand or stabilize their food production.

     The legislature further finds that the Hawaii hemp cannabinoid and cannabidiol market is approximated to be $32,000,000 to $54,000,000 annually, but most of that money flows to out-of-state hemp farmers and businesses due in part to Hawaii residents not being able to differentiate between Hawaii-branded products made with imported hemp and products made with Hawaii-grown hemp.  Given the number of "Buy Local", "Buy Aloha", and "Eat Local" campaigns that have been launched, Hawaii residents, when given the opportunity and transparent data, will often choose Hawaii-grown products.  The legislature recognizes that Hawaii residents and consumers deserve transparency in hemp product labeling.

     Furthermore, the legislature finds that Hawaii hemp farmers have the highest costs of production among United States hemp farmers.  Hawaii-branded products often garner more in the marketplace, and labeling hemp as Hawaii-grown is one of the few ways for Hawaii hemp farmers to remain competitive in addition to creating a more circular economy that benefits Hawaii residents.  Origin labeling helps protect the quality and authenticity of Hawaii's hemp industry, supports the recognition of Hawaii farmers' hard work, and ensures that Hawaii-grown hemp is accurately represented in the marketplace while supporting a consumer's right to transparency.

     Accordingly, the purpose of this Act is to require a producer of any hemp product to include in the identity statement used for labeling or advertising any hemp product:

     (1)  The percentage of Hawaii-grown and Hawaii-processed hemp in the hemp product; and

     (2)  For any hemp product not from Hawaii, the origin of the hemp and percentage of the hemp from the origin.

     SECTION 2.  Section 141-42, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§141-42[]]  Commercial hemp production.  (a)  It shall be legal for an individual or entity to produce hemp, as defined in title 7 United States Code section 1639o, if that individual or entity has a license to produce hemp[,] issued by the United States Secretary of [the United States Department of] Agriculture pursuant to title 7 United States Code section 1639q; provided that:

     (1)  Any person convicted of a felony related to a controlled substance under [state or] federal or state law is prohibited from producing hemp, or being a key participant in an entity producing hemp, for a period of ten years following the date of conviction;

     (2)  Hemp shall not be grown outside of [a state] an agricultural district[;] classified pursuant to chapter 205;

     (3)  Hemp shall not be grown within [500] five hundred feet of pre-existing real property comprising a playground, [childcare] child care facility, or school; provided that this restriction shall not apply to an individual or entity licensed to grow hemp in those areas under the State industrial hemp pilot program [prior to] before August 27, 2020;

     (4)  Hemp shall not be grown within [500] five hundred feet of any pre-existing house, dwelling unit, residential apartment, or other residential structure that is not owned or controlled by the license holder; provided that this restriction shall not apply to an individual or entity licensed to grow hemp in those areas under the State industrial hemp pilot program [prior to] before August 27, 2020; and

     (5)  Hemp shall not be grown in any house, dwelling unit, residential apartment, or other residential structure.

     (b)  An individual or entity licensed to produce hemp pursuant to [paragraph] subsection (a) may transport hemp within the State to a facility authorized by law to process hemp or to another licensed producer's grow area[,]; provided that:

     (1)  The hemp to be transported has passed all compliance testing required by the United States Department of Agriculture; and

     (2)  The transportation has been authorized by the department[.] of agriculture.  The department of agriculture may require movement reports, inspections, sampling, and testing of the hemp to be transported and may deny authorization if the hemp is found to not comply with any law or regulation.

     (c)  An individual or entity licensed to produce hemp pursuant to [paragraph] subsection (a) may export hemp; provided that:

     (1)  The hemp to be exported has passed all compliance testing required by the United States Department of Agriculture; and

     (2)  The licensed producer complies with all laws relating to the exportation of hemp, including [state and] federal and state laws and the laws of the [state or] country or state of import.

     (d)  In addition to all other labeling requirements, the identity statement used for labeling or advertising hemp products shall identify the percentage of Hawaii-grown and Hawaii-processed hemp in hemp products; provided that any hemp product containing hemp not grown and processed in the State shall identify the country or state of origin and percentage of the hemp grown or processed outside of the State in the hemp product; provided further that if the hemp product contains hemp from multiple origins, the hemp product shall identify the percentage of hemp originating from the United States with an origin of "United States" or the percentage of hemp originating from outside the United States with an origin of "Foreign".  For a hemp product in which one hundred per cent of the hemp is grown and processed in the State, the identity statement for labeling or advertising may contain the term "All Hawaiian".

     [(d)] (e)  Any individual or entity who violates this section or any rule adopted pursuant to this section shall be fined [not] no more than $10,000 for each separate offense.  Any notice of violation of this section may be accompanied by a cease and desist order, the violation of which constitutes a further violation of this section.  Any action taken to collect the penalty provided for in this subsection shall be considered a civil action.

     [(e)] (f)  For any judicial proceeding to recover an administrative penalty imposed by order or to enforce a cease and desist order against a hemp producer, the department of agriculture may petition any court of appropriate jurisdiction and need only show that:

     (1)  Notice was given;

     (2)  A hearing was held or the time granted for requesting a hearing has expired without [such] a request;

     (3)  The administrative penalty was imposed on the individual or entity producing hemp; and

     (4)  The penalty remains unpaid or the individual or entity continues to produce hemp."

     SECTION 3.  Section 328G-3, Hawaii Revised Statutes, is amended by amending subsection (j) to read as follows:

     "(j)  No person shall sell, hold, offer, or distribute for sale, hemp products without a label, in a form prescribed by the department, affixed to the packaging that identifies the hemp product as having been tested pursuant to department rules[.] and clearly identifies the percentage of Hawaii-grown and Hawaii-processed hemp in hemp products in a font size large enough for consumers to easily read on the label on the physical product; provided that any hemp product not grown and processed in the State shall identify the country or state of origin and percentage of the hemp grown or processed from outside of the State in the hemp product; provided further that if the hemp product contains hemp from multiple origins, the hemp product shall identify the percentage of hemp originating in the United States with an origin of "United States" or the percentage of hemp originating outside the United States with an origin of "Foreign".  For a hemp product in which one hundred per cent of the hemp is grown and processed in the State, the label may contain the term "All Hawaiian"."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on June 30, 3000.

 

 

 

Report Title:

Hemp Producers; Commercial Hemp Production; Labeling; Advertising; Hawaii-grown Hemp; Hawaii-processed Hemp

 

Description:

Requires that the identity statement used for labeling or advertising hemp products identify the percentage of Hawaii-grown and Hawaii-processed hemp and hemp of other origins contained in hemp products.  Allows the use of "All Hawaiian" for hemp products in which one hundred per cent of the hemp is grown and processed in the State.  Effective 6/30/3000.  (HD2)

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.