Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Judiciary and Hawaiian Affairs, to which was referred S.B. No. 2397 entitled:

begs leave to report as follows:

The purpose of this measure is to amend the definition of "cooler beverage" to allow any type of alcohol as the base for a beverage that contains less than seven per cent of alcohol by volume.

Testimony in support of this measure was submitted by Distilled Spirits Council of the United States. Testimony in opposition to this measure was submitted by the Department of Taxation, Anheuser Busch Companies, and Wine Institute. Comments were received from the Tax Foundation of Hawaii.

Your Committee finds that the existing definition of "cooler beverages" provides that only wine or beer may be used as a base for a beverage containing less than seven per cent alcohol by volume. However, categories and types of alcoholic drinks have evolved, and the definitions of these beverages must change to reflect the current industry. Thus, your Committee believes that the definition of "cooler beverage" should be amended to include any type of alcohol as the base, as long as the total alcohol content is less than seven per cent by volume.

Your Committee has amended this measure to change the effective date to July 1, 2004. Your Committee also amended this measure to make technical, nonsubstantive changes.

As affirmed by the record of votes of the members of your Committee on Judiciary and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2397, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2397, S.D. 1, and be referred to the Committee on Ways and Means.