STAND. COM. REP. NO. 1342

Honolulu, Hawaii

RE: H.B. No. 108

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committees on Commerce and Consumer Protection and Energy and Intergovernmental Affairs, to which was referred H.B. No. 108, H.D. 2, entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to allow direct shipment of beer and distilled spirits by certain licensees.

Your Committees received testimony in support of this measure from the Mayor of the County of Hawaiʻi; County of Hawaiʻi Department of Liquor Control; County of Kauaʻi Department of Liquor Control; one member of the Kauai County Council; Lanikai Brewing Co.; Kauai Beer Company; Koloa Rum Co.; Kona Brewing Hawaii; Kauaʻi Island Brewing Company, LLC; Big Island Brewhaus; Hanalei Spirits Distillery Corp.; Maui Brewing Co.; Brewers Association; Maui Wine; Malama Mushrooms; Lahaina Brewery dba Koholā Brewery; Beer Lab HI; Maui Chamber of Commerce; Hana Koa Brewing Co.; Ola Brew Co.; UPS; Techmana LLC; and seventeen individuals.

Your Committees received testimony in opposition to this measure from the Hawaii Food Industry Association; ABC Stores; Wine and Spirits Wholesalers of America; Hawaii Liquor Wholesalers Association; Seven-Eleven Hawaii, Inc.; Wailea Wine; Retail Merchants of Hawaii; Tamura Enterprises, Inc.; and Hawaiʻi Alcohol Policy Alliance.

Your Committees find that the direct shipment of alcoholic beverages under existing law is limited to wineries and prohibits non-winery manufacturers from shipping other alcoholic beverages, such as beer and distilled spirits, to consumers. Your Committees further find that wineries have successfully shipped their products under existing safeguards, demonstrating their ability to operate under a well-regulated system effectively. Expanding the same opportunities to breweries and distilleries by allowing direct-to-consumer shipping would open new markets, increase sales, and generate additional tax revenue for the State. This measure will modernize the laws governing the craft beer and distilling industry to meet consumer demands.

Your Committees have amended this measure by:

(1) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(2) Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Commerce and Consumer Protection and Energy and Intergovernmental Affairs that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 108, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 108, H.D. 2, S.D. 1, and be referred to your Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committees on Commerce and Consumer Protection and Energy and Intergovernmental Affairs,

________________________________ GLENN WAKAI, Chair

________________________________ JARRETT KEOHOKALOLE, Chair