Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 1465 entitled:

begs leave to report as follows:

The purpose of this bill is to increase from two to ten cases per year, the amount of wine that a wine manufacturer from a state with a reciprocal shipping privilege may ship directly to a Hawaii consumer without a permit.

Testimony in support of this measure was submitted by the Department of Liquor Control of the County of Kauai and the Wine Institute. The Hawaii Food Industry Association (HFIA) testified in opposition to this measure.

Your Committee finds that there is a desire among Hawaii's wine consumers to increase the amount of wine that manufacturers are permitted to ship to Hawaii consumers. This measure will increase that amount to ten cases, which your Committee believes is not an unreasonable amount of wine to be purchased for personal consumption.

Furthermore, your Committee recognizes that the existing permit requirement has already resulted in the United Parcel Service refusing to accept shipments to Hawaii residents because they do not want to be held liable for ensuring that recipients have obtained the proper permit. This measure addresses the issue, by clarifying that unlicensed adults shall not be required to obtain a permit to receive shipments of liquor pursuant to the reciprocal shipping law.

Your Committee also acknowledges HFIA's concern that this measure may be harmful to local wine retailers and suppliers. Accordingly, your Committee has amended this measure by changing the effective date to July 1, 2050, to facilitate further discussion on this matter.

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. 1465, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1465, H.D. 1, and be referred to the Committee on Finance.