Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred H.B. No. 1968, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to permit the direct shipment of wine into the State by persons with a Hawaii class 1 license or another state's license to manufacture wine, upon obtaining a wine direct shipper permit.

Testimony in support of this measure was submitted by the Wine Institute and Tedeschi Vineyards, Ltd. Testimony in opposition to this measure was submitted by Retail Merchants of Hawaii and the Hawaii Food Industry Association.

Your Committee finds that further discussion is needed on the number of cases of wine that a direct wine shipper permitholder may sell and ship into the State. Accordingly, your Committee has amended this measure by changing the effective date from July 1, 2096, to July 1, 2050.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1968, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1968, H.D. 1, S.D. 1, and be placed on the calendar for Third Reading.