Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committees on Economic Development and Commerce, Consumer Protection and Housing, to which was referred S.B. No. 2606 entitled:

beg leave to report as follows:

The purpose of this measure is to amend the brewpub licensing law to authorize brewpubs to sell beer for consumption off premises.

Testimony in support of the measure was received by the Aloha Brewers Guild, Kona Brewing Company, the Oregon Brewers Guild, and fifteen individuals. Two individuals offered comments on the measure.

Your Committees find that this measure is designed to allow local brewpubs to sell their products in sealed glass containers directly to consumers, wholesalers, retailers, and a variety of establishments that serve beer. This measure would allow smaller, locally owned brewpubs to tap into a larger market that has long been dominated by large national breweries. This measure provides increased employment opportunities in the local brewing industry as well as increases revenues generated within the State.

Your Committees have amended this measure by requiring that any beer sold off premises by brewpubs must be sold in sealed glass containers. Further, only brewpubs that manufacture their product in Hawaii are allowed to sell their products off premises. These two amendments will ensure that brewpubs fall under section 342G, the deposit beverage container program, and that the sales of these products will benefit only locally owned brewpubs.

As affirmed by the records of votes of the members of your Committees on Economic Development and Commerce, Consumer Protection and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2606, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2606, S.D. 1, and be referred to the Committee on Judiciary and Hawaiian Affairs.