Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 423 entitled:

begs leave to report as follows:

The purpose of this bill is to facilitate shipments of wine by manufacturers.

Your Committee finds that wineries in Hawaii are unable to ship their products directly to consumers in other states. Your Committee finds that this situation results in loss of revenue for wineries in Hawaii, especially for tourists who desire to purchase a few bottles of wine in Hawaii and have it shipped to their home states. However, local wineries are unable to accommodate them.

This bill proposes to enter into reciprocal agreements with the twelve other reciprocal Mainland states, permitting local wineries to ship their wines directly to customers in those states. This bill would also permit Hawaii residents to purchase wines from Mainland wineries in the reciprocal states and have it shipped to Hawaii. Such purchases are limited to two cases per year, and is for personal use only.

Testimony in support of the measure was received from the Volcano Vineyards, LLC., Tedeshi Vineyards, Ltd., the Wine Institute, and an individual. The Hawaii Wholesale Liquor Dealers recommended that the measure be held in Committee.

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 423 and recommends that it pass Second Reading and be referred to the Committee on Finance.