HB 108: Beer; Distilled Spirits; Direct Shipping; Manufacturers

A BILL FOR AN ACT

RELATING TO INTOXICATING LIQUOR.

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

     SECTION 1.  The legislature finds that under state law, direct business-to-consumer shipping of alcoholic beverages is limited to wineries shipping wine.  Thus, non-winery manufacturers are prohibited from directly shipping alcoholic beverages, including beer and distilled spirits, to consumers.  Direct business-to-consumer shipping will allow these manufacturers to serve existing customers while also pursuing additional markets and new customer bases.  Direct business‑to‑consumer shipping will also assist smaller manufacturers that are struggling to find wholesalers willing to sell and represent the manufacturer's small brands by giving those manufacturers direct access to customers.  In an effort to encourage commerce, the legislature has determined that the State must allow manufacturers to ship their goods to, from, and within the State.

     Accordingly, the purpose of this Act is to allow the direct shipment of beer and distilled spirits by certain licensees.

     SECTION 2.  Chapter 281, Hawaii Revised Statutes, is amended by adding a new section to part III to be appropriately designated and to read as follows:

     "§281-     Direct shipment of beer and distilled spirits by manufacturers.  (a)  Any person holding:

     (1)  A general excise tax license from the department of taxation; and

     (2)  Either:

          (A)  A class 1, class 14, or class 18 license to manufacture beer or distilled spirits under section 281-31; or

          (B)  A license to manufacture beer or distilled spirits issued by another state,

may pay any applicable fees and obtain a direct beer and distilled spirits shipper permit from the commission of the county to which the beer or distilled spirits will be shipped authorizing the holder to directly ship beer and distilled spirits to persons in the county pursuant to this section.

     (b)  Beginning July 1, 2025, the holder of the direct beer and distilled spirits shipper permit may sell and ship beer and distilled spirits to any person twenty-one years of age or older in any county of this State for personal use only and not for resale, and shall:

     (1)  Ship beer and distilled spirits directly to the person only in containers that are conspicuously labeled with the words:

          "CONTAINS ALCOHOL:  SIGNATURE OF PERSON AGE 21 YEARS OR OLDER REQUIRED FOR DELIVERY.";

     (2)  Require that the carrier of the shipment obtain the signature of any person twenty-one years of age or older before delivering the shipment;

     (3)  Report no later than January 31 of each year, to the commission in each county in which a direct beer and distilled spirits shipment was made, the total amount of beer and distilled spirits shipped to persons in that county during the preceding calendar year;

     (4)  Pay all applicable general excise and gallonage taxes.  For gallonage tax purposes, all beer and distilled spirits sold under a direct beer and distilled spirits shipper permit shall be deemed to be beer and distilled spirits sold in the State; and

     (5)  Be subject to audit by the commission of each county in which a direct beer and distilled spirits shipment has been made.

     (c)  The holder of a license to manufacture beer or distilled spirits issued by another state may annually renew a direct beer and distilled spirits shipper permit by providing to the commission that issued the permit a copy of the license and paying all required fees.  The holder of a class 1, class 14, or class 18 license to manufacture beer or distilled spirits under section 281-31 may renew a direct beer and distilled spirits shipper permit concurrently with the applicable license by complying with all applicable laws and paying all required fees.

     (d)  The sale and shipment of beer and distilled spirits directly to a person in the State by a person that does not possess a valid direct beer and distilled spirits shipper permit shall be prohibited.  Any person who knowingly violates this section shall be guilty of a misdemeanor.

     (e)  The commission in each county shall adopt rules necessary to carry out the intent and purpose of this section; provided that each commission shall ensure that its respective rulemaking actions do not interfere with, or unduly delay, the date prescribed in subsection (b).

     (f)  For the purposes of this section, "distilled spirits" has the same meaning as defined in section 244D-1."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2050.

Report Title:

Beer; Distilled Spirits; Direct Shipping; Manufacturers

Description:

Allows direct shipment of beer and distilled spirits by certain licensees.  Requires the liquor commissions to adopt rules.  Effective 7/1/2050.  (SD1)

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

A BILL FOR AN ACT

RELATING TO INTOXICATING LIQUOR.

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

     SECTION 1.  The legislature finds that under state law, direct business-to-consumer shipping of alcoholic beverages is limited to wineries shipping wine.  Thus, non-winery manufacturers are prohibited from directly shipping alcoholic beverages, including beer and distilled spirits, to consumers.  Direct business-to-consumer shipping will allow these manufacturers to serve existing customers while also pursuing additional markets and new customer bases.  Direct business-to-consumer shipping will also assist smaller manufacturers that are struggling to find wholesalers willing to sell and represent the manufacturer's small brands by giving those manufacturers direct access to customers.  In an effort to encourage commerce, the legislature has determined that the State must allow manufacturers to ship their goods to, from, and within the State.

     Accordingly, the purpose of this Act is to allow the direct shipment of beer and distilled spirits by certain licensees.

     SECTION 2.  Chapter 281, Hawaii Revised Statutes, is amended by adding a new section to part III to be appropriately designated and to read as follows:

     "§281-     Direct shipment of beer and distilled spirits by manufacturers.  (a)  Any person holding:

     (1)  A general excise tax license from the department of taxation; and

     (2)  Either:

          (A)  A class 1, class 14, or class 18 license to manufacture beer or distilled spirits under section 281-31; or

          (B)  A license to manufacture beer or distilled spirits issued by another state,

may pay any applicable fees and obtain a direct beer and distilled spirits shipper permit from the commission of the county to which the beer or distilled spirits will be shipped authorizing the holder to directly ship beer and distilled spirits to persons in the county pursuant to this section.

     (b)  Beginning July 1, 2025, the holder of the direct beer and distilled spirits shipper permit may sell and ship beer and distilled spirits to any person twenty-one years of age or older in any county of this State for personal use only and not for resale, and shall:

     (1)  Ship beer and distilled spirits directly to the person only in containers that are conspicuously labeled with the words:

          "CONTAINS ALCOHOL:  SIGNATURE OF PERSON AGE 21 YEARS OR OLDER REQUIRED FOR DELIVERY.";

     (2)  Require that the carrier of the shipment obtain the signature of any person twenty-one years of age or older before delivering the shipment;

     (3)  Report no later than January 31 of each year, to the commission in each county in which a direct beer and distilled spirits shipment was made, the total amount of beer and distilled spirits shipped to persons in that county during the preceding calendar year;

     (4)  Pay all applicable general excise and gallonage taxes.  For gallonage tax purposes, all beer and distilled spirits sold under a direct beer and distilled spirits shipper permit shall be deemed to be beer and distilled spirits sold in the State; and

     (5)  Be subject to audit by the commission of each county in which a direct beer and distilled spirits shipment has been made.

     (c)  The holder of a license to manufacture beer or distilled spirits issued by another state may annually renew a direct beer and distilled spirits shipper permit by providing to the commission that issued the permit a copy of the license and paying all required fees.  The holder of a class 1, class 14, or class 18 license to manufacture beer or distilled spirits under section 281-31 may renew a direct beer and distilled spirits shipper permit concurrently with the applicable license by complying with all applicable laws and paying all required fees.

     (d)  The sale and shipment of beer and distilled spirits directly to a person in the State by a person that does not possess a valid direct beer and distilled spirits shipper permit shall be prohibited.  Any person who knowingly violates this section shall be guilty of a misdemeanor.

     (e)  The commission in each county shall adopt rules necessary to carry out the intent and purpose of this section; provided that each commission shall ensure that its respective rulemaking actions do not interfere with, or unduly delay, the date prescribed in subsection (b).

     (f)  For the purposes of this section, "distilled spirits" has the same meaning as in section 244D-1."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 3000.

Report Title:

Beer; Distilled Spirits; Direct Shipping; Manufacturers

Description:

Allows direct shipment of beer and distilled spirits by certain licensees.  Requires the liquor commissions to adopt rules.  Effective 7/1/3000.  (HD2)

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

A BILL FOR AN ACT

RELATING TO INTOXICATING LIQUOR.

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

     SECTION 1.  The legislature finds that under state law, direct business-to-consumer shipping of alcoholic beverages is limited to wineries shipping wine.  Thus, non-winery manufacturers are prohibited from directly shipping alcoholic beverages, including beer and distilled spirits, to consumers.  Direct business-to-consumer shipping will allow these manufacturers to serve existing customers while also pursuing additional markets and new customer bases.  Direct business-to-consumer shipping will also assist smaller manufacturers that are struggling to find wholesalers willing to sell and represent the manufacturer's small brands by giving those manufacturers direct access to customers.  In an effort to encourage commerce, the legislature has determined that the State must allow manufacturers to ship their goods to, from, and within the State.

     Accordingly, the purpose of this Act is to allow the direct shipment of beer and distilled spirits by certain licensees.

     SECTION 2.  Chapter 281, Hawaii Revised Statutes, is amended by adding a new section to part III to be appropriately designated and to read as follows:

     "§281-     Direct shipment of beer and distilled spirits by manufacturers.  (a)  Any person holding:

     (1)  A general excise tax license from the department of taxation; and

     (2)  Either:

          (A)  A class 1, class 14, or class 18 license to manufacture beer or distilled spirits under section 281-31; or

          (B)  A license to manufacture beer or distilled spirits issued by another state,

may pay any applicable fees and obtain a direct beer and distilled spirits shipper permit from the commission of the county in which the beer or distilled spirits is manufactured that authorizes the holder to directly ship beer and distilled spirits to persons in any county of this State; provided that no permit shall be issued pursuant to paragraph (2)(B) unless the person holds a license in a jurisdiction that affords licensees in this State shipping privileges for the shipment of beer and distilled spirits direct to consumers in that jurisdiction; provided further that permits pursuant to paragraph (2)(B) shall be obtained from the commission of the county of this State to which the person will be shipping the beer or distilled spirits.

     (b)  Beginning July 1, 2025, the holder of the direct beer and distilled spirits shipper permit may sell and ship beer and distilled spirits to any person twenty-one years of age or older in any county of this State for personal use only and not for resale, and shall:

     (1)  Ship beer and distilled spirits directly to the person only in containers that are conspicuously labeled with the words:

          "CONTAINS ALCOHOL:  SIGNATURE OF PERSON AGE 21 YEARS OR OLDER REQUIRED FOR DELIVERY.";

     (2)  Require that the carrier of the shipment obtain the signature of any person twenty-one years of age or older before delivering the shipment;

     (3)  Report no later than January 31 of each year, to the commission in each county in which a direct beer and distilled spirits shipment was made, the total amount of beer and distilled spirits shipped to persons in that county during the preceding calendar year;

     (4)  Pay all applicable general excise and gallonage taxes.  For gallonage tax purposes, all beer and distilled spirits sold under a direct beer and distilled spirits shipper permit shall be deemed to be beer and distilled spirits sold in the State; and

     (5)  Be subject to audit by the commission of each county in which a direct beer and distilled spirits shipment has been made.

     (c)  The holder of a license to manufacture beer or distilled spirits issued by another state may annually renew a direct beer and distilled spirits shipper permit by providing to the commission that issued the permit a copy of the license and paying all required fees.  The holder of a class 1, class 14, or class 18 license to manufacture beer or distilled spirits under section 281-31 may renew a direct beer and distilled spirits shipper permit concurrently with the applicable license by complying with all applicable laws and paying all required fees.

     (d)  The sale and shipment of beer and distilled spirits directly to a person in the State by a person that does not possess a valid direct beer and distilled spirits shipper permit is prohibited.  Any person who knowingly violates this section shall be guilty of a misdemeanor.

     (e)  The commission in each county shall adopt rules necessary to carry out the intent and purpose of this section; provided that each commission shall ensure that that its respective rulemaking actions do not interfere with, or unduly delay, the date prescribed in subsection (b).

     (f)  For the purposes of this section, "distilled spirits" has the same meaning as in section 244D-1."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 3000.

Report Title:

Beer; Distilled Spirits; Direct Shipping; Manufacturers

Description:

Allows direct shipment of beer and distilled spirits by certain licensees.  Requires the liquor commissions to adopt rules and regulations.  Effective 7/1/3000.  (HD1)

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

A BILL FOR AN ACT

relating to intoxicating liquor.

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

     SECTION 1.  The legislature finds that the COVID-19 pandemic and the governmental responses to contain the spread of COVID-19 have disproportionately affected certain manufacturers of alcoholic beverages in the State.  The frequent closure of bars and clubs and prohibition of in-person dining has caused these manufacturers to struggle to find alternative methods of serving their customers, resulting in drastic revenue losses.

     The legislature further finds that under state law, direct business-to-consumer shipping of alcoholic beverages is limited to wineries shipping wine.  Thus, non-winery manufacturers are prohibited from directly shipping alcoholic beverages, including beer and distilled spirits, to consumers.  Direct business-to-consumer shipping will allow these manufacturers to serve existing customers while also pursuing additional markets and new customer bases.  Direct business-to-consumer shipping will also assist smaller manufacturers that are struggling to find wholesalers willing to sell and represent the manufacturer's small brands by giving those manufacturers direct access to customers.  In an effort to encourage commerce, the legislature has determined that the State must allow manufacturers to ship their goods to, from, and within the State.

     Accordingly, the purpose of this Act is to allow the direct shipment of beer and distilled spirits by certain licensees.

     SECTION 2.  Chapter 281, Hawaii Revised Statutes, is amended by adding a new section to part III to be appropriately designated and to read as follows:

     "§281-    Direct shipment of beer and distilled spirits by manufacturers.  (a)  Any person holding:

     (1)  A general excise tax license from the department of taxation; and

     (2)  Either:

          (A)  A class 1, class 14, or class 18 license to manufacture beer or distilled spirits under section 281-31; or

          (B)  A license to manufacture beer or distilled spirits issued by another state,

may pay any applicable fees and obtain a direct beer and distilled spirits shipper permit from the liquor commission of the county in which the beer or distilled spirits is manufactured that authorizes the holder to directly ship beer and distilled spirits to persons in any county of this State; provided that any person who holds a license to manufacture beer or distilled spirits pursuant to paragraph 2(B) may obtain a direct beer and distilled spirits shipper permit from the liquor commission of the county in this State to which the person will be shipping beer or distilled spirits.

     (b)  Beginning July 1, 2025, the holder of the direct beer and distilled spirits shipper permit may sell and ship beer and distilled spirits to any person twenty-one years of age or older in any county of the State for personal use only and not for resale, and shall:

     (1)  Ship beer and distilled spirits directly to the person only in containers that are conspicuously labeled with the words:

          "CONTAINS ALCOHOL:  SIGNATURE OF PERSON AGE 21 YEARS OR OLDER REQUIRED FOR DELIVERY.";

     (2)  Require that the carrier of the shipment obtain the signature of any person twenty-one years of age or older before delivering the shipment;

     (3)  Report no later than January 31 of each year, to the liquor commission in each county in which a direct beer and distilled spirits shipment was made, the total amount of beer and distilled spirits shipped to persons in that county during the preceding calendar year;

     (4)  Pay all applicable general excise and gallonage taxes.  For gallonage tax purposes, all beer and distilled spirits sold under a direct beer and distilled spirits shipper permit shall be deemed to be beer and distilled spirits sold in the State; and

     (5)  Be subject to audit by the liquor commission of each county in which a direct beer and distilled spirits shipment has been made.

     (c)  The holder of a license to manufacture beer or distilled spirits issued by another state may annually renew a direct beer and distilled spirits shipper permit by providing to the liquor commission that issued the permit a copy of the license and paying all required fees.  The holder of a class 1, class 14, or class 18 license to manufacture beer or distilled spirits under section 281-31 may renew a direct beer and distilled spirits shipper permit concurrently with the applicable license by complying with all applicable laws and paying all required fees.

     (d)  The sale and shipment of beer and distilled spirits directly to a person in the State by a person that does not possess a valid direct beer and distilled spirits shipper permit is prohibited.  Knowingly violating this section is a misdemeanor.

     (e)  The liquor commission in each county shall adopt rules necessary to carry out the intent and purpose of this section; provided that the liquor commission in each county shall ensure that that liquor commission's respective rulemaking actions do not interfere with, or unduly delay, the date prescribed in subsection (b).

     (f)  For the purposes of this section, "distilled spirits" shall have the same meaning as in section 244D-1."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

Report Title:

Beer; Distilled Spirits; Direct Shipping; Manufacturers

Description:

Allows direct shipment of beer and distilled spirits by certain licensees.  Requires the liquor commission of each county to adopt rules and regulations.

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

STAND. COM. REP. NO. 1342

Honolulu, Hawaii

RE:    H.B. No. 108

       H.D. 2

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committees on Commerce and Consumer Protection and Energy and Intergovernmental Affairs, to which was referred H.B. No. 108, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO INTOXICATING LIQUOR,"

beg leave to report as follows:

     The purpose and intent of this measure is to allow direct shipment of beer and distilled spirits by certain licensees.

     Your Committees received testimony in support of this measure from the Mayor of the County of Hawaiʻi; County of Hawaiʻi Department of Liquor Control; County of Kauaʻi Department of Liquor Control; one member of the Kauai County Council; Lanikai Brewing Co.; Kauai Beer Company; Koloa Rum Co.; Kona Brewing Hawaii; Kauaʻi Island Brewing Company, LLC; Big Island Brewhaus; Hanalei Spirits Distillery Corp.; Maui Brewing Co.; Brewers Association; Maui Wine; Malama Mushrooms; Lahaina Brewery dba Koholā Brewery; Beer Lab HI; Maui Chamber of Commerce; Hana Koa Brewing Co.; Ola Brew Co.; UPS; Techmana LLC; and seventeen individuals.

     Your Committees received testimony in opposition to this measure from the Hawaii Food Industry Association; ABC Stores; Wine and Spirits Wholesalers of America; Hawaii Liquor Wholesalers Association; Seven-Eleven Hawaii, Inc.; Wailea Wine; Retail Merchants of Hawaii; Tamura Enterprises, Inc.; and Hawaiʻi Alcohol Policy Alliance.

     Your Committees find that the direct shipment of alcoholic beverages under existing law is limited to wineries and prohibits non-winery manufacturers from shipping other alcoholic beverages, such as beer and distilled spirits, to consumers.  Your Committees further find that wineries have successfully shipped their products under existing safeguards, demonstrating their ability to operate under a well-regulated system effectively.  Expanding the same opportunities to breweries and distilleries by allowing direct-to-consumer shipping would open new markets, increase sales, and generate additional tax revenue for the State.  This measure will modernize the laws governing the craft beer and distilling industry to meet consumer demands.

     Your Committees have amended this measure by:

     (1)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

     (2)  Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

     As affirmed by the records of votes of the members of your Committees on Commerce and Consumer Protection and Energy and Intergovernmental Affairs that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 108, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 108, H.D. 2, S.D. 1, and be referred to your Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committees on Commerce and Consumer Protection and Energy and Intergovernmental Affairs,

STAND. COM. REP. NO.  945

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 108

      H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Finance, to which was referred H.B. No. 108, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO INTOXICATING LIQUOR,"

begs leave to report as follows:

     The purpose of this measure is to allow the direct shipment of beer and distilled spirits by certain liquor licensees.

     Your Committee received testimony in support of this measure from the County of Hawaiʻi Department of Liquor Control; Hana Koa Brewing Co.; Maui Brewing Co.; Big Island Brewhaus; Mana Up; Kauai Beer Company; Brewers Association; Lanikai Brewing Co.; Kuleana Spirits, Inc.; Kōloa Rum Co.; Ola Brew; Kauaʻi Island Brewing Company, LLC; Ko Hana Distillers; Maui Chamber of Commerce; Hawaii Transportation Association; and four individuals.  Your Committee received testimony in opposition to this measure from the Hawaii Food Industry Association and Hawaii Liquor Wholesalers Association.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 108, H.D. 2, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

STAND. COM. REP. NO.  741

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 108

      H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Judiciary & Hawaiian Affairs, to which was referred H.B. No. 108, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INTOXICATING LIQUOR,"

begs leave to report as follows:

     The purpose of this measure is to allow the direct shipment of beer and distilled spirits by certain liquor licensees.

     Your Committee received testimony in support of this measure from one member of the Kauaʻi County Council; Lanikai Brewing Co.; Maui Brewing Co.; Koloa Rum; Brewers Association; Howzit Brewing; Kauai Beer Company; Beer Lab Hawaii; and Ola Brew Co.  Your Committee received testimony in opposition to this measure from Hawaii Liquor Wholesalers Association and Hawaii Food Industry Association.  Your Committee received comments on this measure from the Department of the Attorney General.

     Your Committee finds that existing state law limits direct shipping of alcoholic beverages to wineries, prohibiting non-winery manufacturers from shipping beer and distilled spirits to consumers.  Your Committee further finds that allowing direct business-to-consumer shipping will support local breweries and distilleries, facilitate commerce and generate revenue within the State, and expand market access to Hawaii products outside the State.

     Your Committee has amended this measure by:

     (1)  Amending the procedure for obtaining a direct beer or distilled spirits shipper permit; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Judiciary & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 108, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as H.B. No. 108, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Judiciary & Hawaiian Affairs,

STAND. COM. REP. NO.  160

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 108

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 108 entitled:

"A BILL FOR AN ACT RELATING TO INTOXICATING LIQUOR,"

begs leave to report as follows:

     The purpose of this measure is to allow the direct shipment of beer and distilled spirits by certain liquor licensees.

     Your Committee received testimony in support of this measure from the Kōloa Rum Company; Maui Brewing Co.; Lanikai Brewing Company; Beer Lab HI; Maui Wine; Ola Brew; Kuleana Rum Works; Brewers Association; Napali Brewing Company; Koolau Distillery; Kauaʻi Island Brewing Co.; Hana Hou Brewing Co.; Kauai Beer Company; and five individuals.  Your Committee received testimony in opposition to this measure from the Hawaii Liquor Wholesalers Association and Hawaiʻi Alcohol Policy Alliance.

     Your Committee finds that existing law imposes differential treatment among liquor licensees by authorizing direct business-to-consumer shipping of alcoholic beverages for wineries shipping wine, but not for other licensees or other types of alcohol.  This differential treatment impedes the growth of small licensees that struggle to secure relationships with wholesalers to distribute the small licensees' products across the State.  This measure provides another avenue for small business licensees to reach consumers by allowing the direct shipment of beer and distilled spirits by certain licensees.

     Your Committee has amended this measure by:

     (1)  Clarifying that the authority for an out-of-state manufacturer to ship directly to consumers is contingent upon the manufacturer being licensed in a jurisdiction that affords licensees in Hawaii shipping privileges for the shipment of beer and distilled spirits direct to consumers in that jurisdiction;

     (2)  Changing the effective date to July 1, 3000, to encourage further discussion; and

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     Your Committee respectfully requests your Committee on Judiciary & Hawaiian Affairs, should it deliberate on this measure, to consider whether reciprocity provisions relating to the interstate shipment of intoxicating liquor are constitutional.

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 108, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 108, H.D. 1, and be referred to your Committee on Judiciary & Hawaiian Affairs.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,