STAND. COM. REP. NO. 200

Honolulu, Hawaii

, 2021

RE: H.B. No. 824

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Transportation, to which was referred H.B. No. 824 entitled:

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

begs leave to report as follows:

The purpose of this measure is to require carriers to file reports with the applicable county liquor commission or county liquor control adjudication board on a monthly basis.

Your Committee received testimony in support of this measure from the Hawaii Liquor Wholesalers Association. Your Committee received comments on this measure from the Matson Navigation Company, Inc.

Your Committee finds that a number of out-of-sate manufacturers and retailers ship wine to residents without holding the proper direct wine shipper permits. These shippers evade payment of the general excise tax required by businesses that hold direct wine shipper permits. This measure will enable county liquor commissions and liquor control adjudication boards to monitor the amount of liquor that is shipped into the State and determine whether the shipper has complied with permitting requirements, thereby ensuring that the State can collect necessary tax revenue.

Your Committee has amended this measure by:

(1) Specifying that the monthly report of shipments is submitted to the liquor commission or liquor control adjudication board of each county, rather than just the county in which the delivery is made;

(2) Changing the preservation requirement for the reports from four years to three years;

(3) Changing its effective date to July 1, 2050, 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 Transportation that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 824, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 824, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Transportation,

____________________________

HENRY J.C. AQUINO, Chair