Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Consumer Protection & Commerce and Judiciary, to which was referred S.B. No. 121 entitled:

beg leave to report as follows:

The purpose of this bill is to allow brewpubs to sell:

Aloha Brewers Guild, Caldera Brewing Company, Fish and Game Brewing Co., Rotisserie Maui Brewing Co., Cask Brewing Systems, Waimea Brewing Co., Stone Brewing & Distributing Co., Kona Brewing Company, Sam Choy's Big Aloha Brewery, and Ball Corporation testified in support of this measure.

Your Committees find that this measure allows brewpubs to sell malt beverages in recyclable containers, instead of being restricted to glass. It also permits brewpubs to sell malt beverages to class 2 restaurant licensees, thus expanding their market.

Your Committees find that while including class 2 licensees would include restaurants, the largest category of potential customers, there were concerns that this provision would allow brewpubs to circumvent the normal distribution levels of sales of malt beverages.

Upon further consideration, your Committees have amended this measure by deleting the provision permitting brewpubs to sell malt beverages directly to class 2 licensees.

As affirmed by the records of votes of the members of your Committees on Consumer Protection & Commerce and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 121, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 121, H.D. 1.