STAND. COM. REP. NO. 2787

Honolulu, Hawaii

RE: S.B. No. 2975

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Agriculture and Environment, to which was referred S.B. No. 2975 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 exempt applications for a class 1 liquor license on land designated as agricultural by state or county zoning laws and for which the majority of the agricultural products used in the manufacturing of the liquor are grown and produced in the State by the license holder, from the automatic refusal provision that may be invoked by a majority of nearby voters or real estate owners.

Your Committee received testimony in support of this measure from LBD Coffee, LLC and one individual. Your Committee received comments on this measure from the Liquor Commission of the City and County of Honolulu.

Your Committee finds that under existing law, when a person applies for a class 1 liquor license, a majority of neighbors may protest, thus resulting in disqualification of the application. This measure seeks to exempt agricultural producers who wish to use their own agricultural products to produce liquor from being disqualified by a majority protest of their neighbors.

Your Committee has amended this measure by:

(1) Replacing the term "agricultural product" with the term "agricultural commodity";

(2) Defining "agricultural commodity" as any fruit, nut, or vegetable that is the food product of any tree, vine, or plant, or any aquacultural, horticultural, silvicultural, or floricultural product; and

(3) 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 Agriculture and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2975, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2975, S.D. 1, and be referred to your Committee on Commerce, Consumer Protection, and Health.

Respectfully submitted on behalf of the members of the Committee on Agriculture and Environment,

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MIKE GABBARD, Chair