STAND. COM. REP. NO. 1248

Honolulu, Hawaii

RE:    H.B. No. 1314

       H.D. 1

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Madam:

     Your Committee on Commerce and Consumer Protection, to which was referred H.B. No. 1314, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO LIQUOR,"

begs leave to report as follows:

     The purpose and intent of this measure is to authorize:

     (1)  The Department of Agriculture to request the use of certain language on beer labels to convey the true place of production in cases where the labels tend to create the false impression that the beer was produced in Hawaii or a region of Hawaii; and

     (2)  The inclusion of the name of the bottler and place where the beer was bottled or canned on beer labels bearing any Hawaiian brand name or adjective, Hawaiian word or statement, design, or device for beer that is sold or distributed in the State.

     Your Committee received testimony in support of this measure from Maui Brewing Co.; Kauai Brewers LLC; Kaua‘i Island Brewing Company, LLC; Big Island Brewhaus; and one individual.  Your Committee received testimony in opposition to this measure from Kona Brewing Co. and Capitol Consultants of Hawaii, LLP.

     Your Committee finds that Hawaii consumers often wish to know the origin of the food and beverages they are consuming.  A beer brewer who manufacturers beer outside of Hawaii, then labels the beer without indicating the actual origin of manufacture may cause confusion amongst consumers, especially for those consumers who value locally made products in order to support local businesses and ensure quality and freshness of the products.

     Your Committee notes that this measure requests, but does not require, the use of certain language on beer labels to convey the true place of production and the name of the bottler and the place where the beer was bottled or canned in certain situations.

     As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1314, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

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

____________________________

ROSALYN H. BAKER, Chair