HB108 HD1

SECTION 1. The legislature finds that under state law, direct business-to-consumer shipping of alcoholic beverages is limited to wineries shipping wine. Thus, non-winery manufacturers are prohibited from directly shipping alcoholic beverages, including beer and distilled spirits, to consumers. Direct business-to-consumer shipping will allow these manufacturers to serve existing customers while also pursuing additional markets and new customer bases. Direct business-to-consumer shipping will also assist smaller manufacturers that are struggling to find wholesalers willing to sell and represent the manufacturer's small brands by giving those manufacturers direct access to customers. In an effort to encourage commerce, the legislature has determined that the State must allow manufacturers to ship their goods to, from, and within the State.

Accordingly, the purpose of this Act is to allow the direct shipment of beer and distilled spirits by certain licensees.

SECTION 2. Chapter 281, Hawaii Revised Statutes, is amended by adding a new section to part III to be appropriately designated and to read as follows:

"§281- Direct shipment of beer and distilled spirits by manufacturers. (a) Any person holding:

(1) A general excise tax license from the department of taxation; and

(2) Either:

(A) A class 1, class 14, or class 18 license to manufacture beer or distilled spirits under section 281-31; or

(B) A license to manufacture beer or distilled spirits issued by another state,

may pay any applicable fees and obtain a direct beer and distilled spirits shipper permit from the commission of the county in which the beer or distilled spirits is manufactured that authorizes the holder to directly ship beer and distilled spirits to persons in any county of this State; provided that no permit shall be issued pursuant to paragraph (2)(B) unless the person holds a license in a jurisdiction that affords licensees in this State shipping privileges for the shipment of beer and distilled spirits direct to consumers in that jurisdiction; provided further that permits pursuant to paragraph (2)(B) shall be obtained from the commission of the county of this State to which the person will be shipping the beer or distilled spirits.

(b) Beginning July 1, 2025, the holder of the direct beer and distilled spirits shipper permit may sell and ship beer and distilled spirits to any person twenty-one years of age or older in any county of this State for personal use only and not for resale, and shall:

(1) Ship beer and distilled spirits directly to the person only in containers that are conspicuously labeled with the words:

"CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 YEARS OR OLDER REQUIRED FOR DELIVERY.";

(2) Require that the carrier of the shipment obtain the signature of any person twenty-one years of age or older before delivering the shipment;

(3) Report no later than January 31 of each year, to the commission in each county in which a direct beer and distilled spirits shipment was made, the total amount of beer and distilled spirits shipped to persons in that county during the preceding calendar year;

(4) Pay all applicable general excise and gallonage taxes. For gallonage tax purposes, all beer and distilled spirits sold under a direct beer and distilled spirits shipper permit shall be deemed to be beer and distilled spirits sold in the State; and

(5) Be subject to audit by the commission of each county in which a direct beer and distilled spirits shipment has been made.

(c) The holder of a license to manufacture beer or distilled spirits issued by another state may annually renew a direct beer and distilled spirits shipper permit by providing to the commission that issued the permit a copy of the license and paying all required fees. The holder of a class 1, class 14, or class 18 license to manufacture beer or distilled spirits under section 281-31 may renew a direct beer and distilled spirits shipper permit concurrently with the applicable license by complying with all applicable laws and paying all required fees.

(d) The sale and shipment of beer and distilled spirits directly to a person in the State by a person that does not possess a valid direct beer and distilled spirits shipper permit is prohibited. Any person who knowingly violates this section shall be guilty of a misdemeanor.

(e) The commission in each county shall adopt rules necessary to carry out the intent and purpose of this section; provided that each commission shall ensure that that its respective rulemaking actions do not interfere with, or unduly delay, the date prescribed in subsection (b).

(f) For the purposes of this section, "distilled spirits" has the same meaning as in section 244D-1."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 3000.

HOUSE OF REPRESENTATIVES	H.B. NO.	108
THIRTY-THIRD LEGISLATURE, 2025		H.D. 1
STATE OF HAWAII