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 S.B. No. 630, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to enact a reciprocal shipping law that permits local wineries to ship up to two cases of their wines for personal use, directly to a customer in a state with a reciprocal shipping law. This bill will also permit a Hawaii resident to purchase for personal use and have shipped to Hawaii, up to two cases of wine from mainland wineries in reciprocal states.

Testimony in support of this measure was received from Volcano Vineyards, LLC, Tedeschi Vineyards, Ltd., and the Wine Institute.

Your Committee finds that Hawaii's small wineries have found it difficult to distribute their products outside of the State through wholesale distributors. The success of their businesses is also limited by their inability to ship their products directly to consumers in other states, many of whom are tourists who want to buy Hawaii's wine, but find it difficult to carry the heavy bottles while on vacation. This situation results in lost sales to Hawaii's businesses, and lost tax revenues to the State. Your Committee also finds that this measure will help to diversify the economy by assisting Hawaii's small, but growing wine industry.

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 S.B. No. 630, S.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Finance.