STAND. COM. REP. NO 620

Honolulu, Hawaii

RE:    S.B. No. 1368

       S.D. 2

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Madam:

     Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 1368, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO LIQUOR,"

begs leave to report as follows:

     The purpose and intent of this measure is to prohibit the sale of liquor at street closure events, except under certain conditions.

     Your Committee received testimony in support of this measure from the Chinatown Gateway Plaza Tenant Association and one individual.  Your Committee received testimony in opposition to this measure from the Arts District Merchants Association; O‘ahu Fringe Festival; Young's Market Company; The Arts at Marks Garage; Paradise Beverages, Inc.; Kim Taylor Reece Gallery; 4th World Film; T-RX Entertainment, LLC; Mendonca Building; Pearl Wedding Photography; and numerous individuals.  Your Committee received comments on this measure from the Liquor Commission of the City and County of Honolulu.

     Your Committee finds that street closure events, often funded by the sale of liquor, have increased in size and popularity.  Although these events have brought in visitors and revenue, concerns have been raised about noise and other impacts on area residents.  This measure attempts to address some of the community conflicts that result from sales and consumption of alcohol on public streets and sidewalks during street closure events such as arts and entertainment street festivals by prohibiting the sale of liquor during these events, except under certain conditions.  However, your Committee notes that amendments to this measure are necessary to ensure a better balance between the statewide regulation of alcohol sales and street festivals.

     Accordingly, your Committee has amended this measure by:

     (1)  Requiring liquor sales for street closure events as allowed by this measure to be subject to the same requirements as those applicable to vendors with Class 2 restaurant and Class 5 dispenser licenses; and

     (2)  Clarifying the definition of "beer garden".

     As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1368, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1368, S.D. 2.

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

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ROSALYN H. BAKER, Chair