STAND. COM. REP. NO. 1329-18

Honolulu, Hawaii

, 2018

RE: S.B. No. 2711

S.D. 1

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 2711, S.D. 1, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to:

(1) Authorize brewpub and small craft producer pub licensees to conduct liquor sales at multiple appropriately licensed premises statewide;

(2) Increase the maximum amount that a small craft producer pub licensee can manufacture from 60,000 barrels of malt beverage to 350,000 barrels of malt beverage statewide; provided that no single location manufactures more than 125,000 barrels of malt beverage;

(3) Specify that brewpubs and small craft producer pub licensees may sell malt beverages in growlers that may be recyclable containers of up to one gallon; and

(4) Permit direct shipping of malt beverages and spirits under the same conditions as are currently permitted for direct shipment of wine.

The Hawaiian Craft Brewers Guild, Lanikai Brewing Company, Kauai Beer Company, Waikiki Brewing Company, Maui Brewing Company, Big Island Brewhaus, Honolulu BeerWorks, REAL a gastropub/Bent Tail Brewing Company, Kona Brewing Company, Beer Lab HI, and Kaua‘i Island Brewing Company testified in support of this measure.

Your Committee has amended this measure by:

(1) Clarifying that each satellite location is under the jurisdiction and subject to the requirements of the applicable license class of the liquor commission of the county in which the satellite is located; and

(2) Making technical, nonsubstantive amendments for 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 S.B. No. 2711, S.D. 1, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as S.B. No. 2711, S.D. 1, H.D. 2.

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

____________________________

ROY M. TAKUMI, Chair