STAND. COM. REP. NO. 166

Honolulu, Hawaii

RE:    S.B. No. 1193

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Public Safety, Government Operations, and Military Affairs, to which was referred S.B. No. 1193 entitled:

"A BILL FOR AN ACT RELATING TO LIQUOR,"

begs leave to report as follows:

     The purpose and intent of this measure is to allow Hawaii consumers to receive discounts, coupons, and rebates when purchasing intoxicating liquor in combination with other merchandise.

     Your Committee received testimony in support of this measure from four entities and eleven individuals.  Your Committee received comments on this measure from one entity.

     Your Committee finds that this measure brings Hawaii in line with all but seven states that allow coupons, discounts, and rebates or combinations thereof for the purchase of alcoholic beverages along with other merchandise.  Testimony indicates that this is strictly a marketing tool that is used by manufacturers and stores to boost sales, which increases general excise tax revenues to the State.

     Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Public Safety, Government Operations, and Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1193, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1193, S.D. 1, and be referred to the Committee on Commerce and Consumer Protection.

Respectfully submitted on behalf of the members of the Committee on Public Safety, Government Operations, and Military Affairs,

____________________________

WILL ESPERO, Chair