STAND. COM. REP. NO. 2105

Honolulu, Hawaii

RE:    S.B. No. 2169

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Commerce, Consumer Protection, and Affordable Housing, to which was referred S.B. No. 2169 entitled:

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

begs leave to report as follows:

     The purpose of this measure is to expand the wholesale and retail wine market in Hawaii by establishing a new winery class of liquor licenses.

     Testimony in support of this measure was submitted by Wine the Experience and four private individuals.

     Your Committee finds that the existing law relating to liquor licenses under section 281-31, Hawaii Revised Statutes, does not provide a liquor license class for wineries.  Establishing a winery liquor license will provide a business or organization that is federally permitted to produce wine to continue to do business as a fully licensed entity on the state and county level, and be regulated by the appropriate county liquor commission.  A new class of liquor licenses will allow small businesses to create and market locally produced products; thus, resulting in a stronger local economy.

     Your Committee has amended this measure to make technical, nonsubstantive amendments for the purposes of clarity and style.

     Your Committee believes that establishing a new liquor license class for wineries will fulfill the intent of this measure, which is to expand the wholesale and retail wine market in Hawaii.

     As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Affordable Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2169, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2169, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Affordable Housing,

____________________________

RUSSELL S. KOKUBUN, Chair