STAND. COM. REP. NO.1167

Honolulu, Hawaii

, 2003

RE: H.B. No. 1465

H.D. 2

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred H.B. No. 1465, H.D. 2, entitled:

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

begs leave to report as follows:

The purpose of this measure is to (1) change the maximum number of cases of wine that a holder of a license to manufacture wine in another state having a reciprocal shipping privilege, may ship per year to any resident age twenty-one or older for personal use and not for resale; and (2) clarify that an unlicensed adult person is not required to obtain an individual permit to receive shipments of liquor to receive those cases.

Your Committee received testimony in support of this measure from the Wine Institute. Testimony in opposition was received from Foodland Super Market, Ltd., Okimoto Corp, R. Field Wine Company, and Hawaii Food Industry Association.

The intent of this measure is to facilitate the shipping of liquor and wine between states with a reciprocal shipping privilege, which permits the interstate shipping of wine for personal consumption and not for resale. According to testimony of the Wine Institute, the Honolulu Liquor Commission requires Honolulu residents to obtain a permit prior to receiving shipments under the reciprocal shipping law. This makes it difficult for consumers to receive wine by shipment, because shippers can require that recipients have a valid permit. This effectively defeats the intent of the reciprocal shipping law.

Your Committee finds that the limit of two shipped cases per year is artificially low, particularly for wine connoisseurs. A reasonable increase in the number of cases would not detract from local sales.

Your Committee has amended this measure by increasing the number of cases of wine permitted to be shipped to five, and making technical amendments.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1465, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1465, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection and Housing,

____________________________

RON MENOR, Chair