STAND. COM. REP. NO. 453

Honolulu, Hawaii

, 2019

RE: H.B. No. 887

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 887, 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) Amend the definition of "cooler beverage" to include spirits-based beverages so that they are taxed at the same rate as wine- or beer-based cooler beverages; and

(2) Apply the tax rate currently applied to draft beer to all beer regardless of how the beer is dispensed.

Kauai Beer Company, Hawaiian Craft Brewers Guild, Kaua‘i Island Brewing Company, LLC., Honolulu Beerworks, REAL a gastropub/Bent Tail Brewing Company, Maui Brewing Co., Beer Lab HI, Lanikai Brewing Company, Waikiki Brewing Company, and Koholā Brewery supported this measure. The Department of Taxation provided comments.

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. 887, H.D. 1, and recommends that it be referred to your Committee on Finance.

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

____________________________

ROY M. TAKUMI, Chair