STAND. COM. REP. NO. 1197-04

Honolulu, Hawaii

, 2004

RE: S.B. No. 2606

S.D. 1

H.D. 2

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred S.B. No. 2606, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO BREWPUB LICENSES,"

begs leave to report as follows:

The purpose of this bill is to:

(1) Authorize licensed brewpubs to sell malt beverages manufactured on the licensee's premises:

(a) In brewery-sealed packages to consumers for off-premises consumption;

(b) In securely covered containers provided by the licensee or consumer, not to exceed one gallon per container, directly to consumers for off-premises consumption; and

(c) In brewery-sealed containers to wholesale dealer, retail dealer, dispensers', club, vessel, transient vessel, tour or cruise vessel, special, cabaret, hotel, and caterer licensees;

(2) Require brewpubs engaged in the retail sale of malt beverages to comply with regulations pertaining to class 4 retail licensees; and

(3) Permit brewpubs to conduct activities at a second location licensed by the same ownership, provided that manufacturing takes place in Hawaii.

The Fish & Game Brewing Company, Aloha Brewers Guild, Sam Choy's Big Aloha Brewery, Oregon Brewers Guild, and numerous concerned individuals testified in favor of this measure. The Association of Brewers supported the intent of this measure.

Your Committee finds it appropriate to encourage this unique manufacturing niche by permitting brewpubs to retail and distribute their own products. Your Committee notes that none of the testimony received suggested that this arrangement would seriously compromise the existing three-tiered regulatory scheme -- with separate requirements for manufacturers, distributors, and retailers -- as applied to other producers and purveyors of intoxicating liquor.

Your Committee has amended this bill by:

(1) Rewording subsection 281-31(o)(6) to eliminate a reference to "delivery . . . in securely covered containers" to avoid an interpretation or suggestion that this subsection involves arrangements for off-premises delivery of malt beverages; and

(2) Making technical, nonsubstantive amendments for clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2606, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2606, S.D. 1, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Judiciary,

 

____________________________

ERIC G. HAMAKAWA, Chair