STAND. COM. REP. NO. 741

Honolulu, Hawaii

, 2025

RE: H.B. No. 108

H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Judiciary & Hawaiian Affairs, to which was referred H.B. No. 108, 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 allow the direct shipment of beer and distilled spirits by certain liquor licensees.

Your Committee received testimony in support of this measure from one member of the Kauaʻi County Council; Lanikai Brewing Co.; Maui Brewing Co.; Koloa Rum; Brewers Association; Howzit Brewing; Kauai Beer Company; Beer Lab Hawaii; and Ola Brew Co. Your Committee received testimony in opposition to this measure from Hawaii Liquor Wholesalers Association and Hawaii Food Industry Association. Your Committee received comments on this measure from the Department of the Attorney General.

Your Committee finds that existing state law limits direct shipping of alcoholic beverages to wineries, prohibiting non-winery manufacturers from shipping beer and distilled spirits to consumers. Your Committee further finds that allowing direct business-to-consumer shipping will support local breweries and distilleries, facilitate commerce and generate revenue within the State, and expand market access to Hawaii products outside the State.

Your Committee has amended this measure by:

(1) Amending the procedure for obtaining a direct beer or distilled spirits shipper permit; and

(2) 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 Judiciary & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 108, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as H.B. No. 108, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Judiciary & Hawaiian Affairs,

____________________________

DAVID A. TARNAS, Chair