Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 1754 entitled:

begs leave to report as follows:

The purpose of this bill is to repeal section 281-33.1, Hawaii Revised Statutes (HRS), which allows an unlicensed consumer to apply for a permit to receive a single shipment of liquor from outside the State for personal use and consumption.

Legislative Information Services of Hawaii submitted testimony in opposition of this bill. The Wine Institute commented on this bill.

Your Committee finds that the people of Hawaii have diverse and unique tastes with respect to wines and spirits. The Internet provides a convenient and affordable mechanism to purchase select liquors that may not be sold by local vendors. Consumer purchases of out-of-state wines were facilitated by the passage of the reciprocal shipping law, Act 58, Session Laws of Hawaii 2001, codified as section 281-33.5, Hawaii Revised Statutes (HRS). Act 58 allowed up to two cases of wine to be shipped to an adult Hawaii resident by a winery located in a state that extends the same reciprocal shipping privilege to Hawaii wineries. Act 58 was intended to be exempt from the section 281-33.1, HRS, permit requirement. Your Committee finds that this bill corrects this oversight by repealing section 281-33.1, HRS.

However, your Committee finds that repealing section 281-33.1, HRS, in its entirety would have the inadvertent effect of prohibiting individuals taking up residency in Hawaii from bringing personal collections of liquor into the State.

Your Committee has amended this measure by retaining that portion of section 281-33.1 that allows an unlicensed person to apply for a permit to ship their household liquor collection into the State.

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. 1754, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1754, H.D. 1, and be referred to the Committee on Finance.