STAND. COM. REP. NO.  488-14

Honolulu, Hawaii

                , 2014

RE:   H.B. No. 2484

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 2484 entitled:

"A BILL FOR AN ACT RELATING TO LIQUOR LICENSE CLASSES,"

begs leave to report as follows:

The purpose of this measure is to:

     (1)  Remove the requirement that a class 14 brewpub licensee manufacture not more than 30,000 barrels of malt beverages on the licensee's premises during the license year;

     (2)  Establish a new class 18 liquor license class for small craft producer pubs; and

     (3)  Make conforming amendments relating to liquor license classes.

Maui Brewing Co. testified in support of this measure.  NAIFA testified in opposition of this measure.  The Liquor Commission, City and County of Honolulu; Hawaii Liquor Wholesalers Association; and Southern Wine and Spirits of Hawaii provided comments on this measure.

     Your Committee has amended this measure by:

     (1)  Prohibiting brewpub and small craft producer pub licensees from selling intoxicating liquor purchased from a class 1 manufacturer licensee for consumption on the premises;

     (2)  Amending the requirement that a class 16 winery licensee manufacture not more than 20,000, instead of 10,000, barrels of wine on the licensee's premises during the license year;

     (3)  Changing the effective date of this measure to July 1, 2112, to encourage further discussion; and

     (4)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2484, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2484, H.D. 1, and be referred to the Committee on Finance.

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

____________________________

ANGUS L.K. McKELVEY, Chair