STAND. COM. REP. NO. 2555
Honolulu, Hawaii
RE: S.B. No. 2711
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Twenty-Ninth State Legislature
Regular Session of 2018
State of Hawaii
Sir:
Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 2711 entitled:
"A BILL FOR AN ACT RELATING TO INTOXICATING LIQUOR,"
begs leave to report as follows:
The purpose and intent of this measure is to:
(1) Clarify that a class 14 brewpub licensee or class 18 small craft producer pub licensee may conduct certain activities at locations other than the licensee's primary manufacturing premises under certain conditions;
(2) Clarify the definition of growler; and
(3) Allow direct shipping of all forms of liquor, rather than just wine, by certain licensees.
Your Committee
received testimony in support of this measure from the Hawaiian Craft Brewers Guild;
Waikiki Brewing Company; Honolulu BeerWorks; REAL a gastropub; Big Island
Brewhaus; Maui Brewing Co.; Kauai Beer Company; Stewbum & Stonewall Brewing
Co.; Lanikai Brewing Company; Kaua‘i Island Brewing Company, LLC; and
five individuals. Your Committee
received comments on this measure from the Liquor Commission of the City and
County of Honolulu.
Your Committee finds
that the popularity of growlers, a type of container used to transport beer,
continues to increase. Although growlers
were originally made of glass, they are now made from a wider range of
environmentally friendly reusable or recyclable materials. This measure reflects this change in
container materials by defining growler as a recyclable or reusable container
not to exceed one gallon.
Your Committee further
finds that the State's craft breweries are increasing in number, through the
addition of new start-up brewery businesses and the expansion of existing
businesses. Breweries that have an
initial or primary manufacturing premises may wish to expand to a new
establishment, sometimes in a second county.
This measure addresses inconsistencies in existing law by allowing a
second location, which may not be a manufacturing facility, to conduct
activities such as dispensing and retail sales under the same trade name as the
original licensee, without having to obtain a second production license. However, your Committee has heard the
concerns about the potential requirements for an additional public hearing for
a licensee who wishes to open a second location in a different county, as your
Committee notes that this is a costly and time-consuming process. Amendments to this measure are therefore
necessary to clarify when a licensee may avoid the requirement for a public
hearing prior to the establishment of a secondary location under the licensee's
trade name.
Your Committee
additionally finds that existing law allows the direct shipment of wine. This measure achieves parity across all
categories of beverage alcohol by permitting direct shipment of specified
amounts of beer, spirits, and wine. Your
Committee notes that start-up breweries and smaller craft breweries usually
lack access to distributors who will export their beer out of the State. This measure therefore provides an
opportunity for Hawaii's craft beer businesses to offer products through direct
sales to new markets and a wider customer base.
Your Committee has amended this measure by:
(1) Clarifying that the public hearing requirements for another location of a class 14 brewpub licensee or class 18 small craft producer pub licensee, located within any county in the State, shall not apply to that other location, if there have not been any actionable complaints against the original class 14 licensee or class 18 licensee; and
(2) 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 Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2711, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2711, 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 Health,
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________________________________ ROSALYN H. BAKER, Chair |
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