STAND. COM. REP. NO. 1427-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2835

S.D. 1

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Economic Development & Technology, to which was referred S.B. No. 2835, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO LIQUOR,"

begs leave to report as follows:

The purpose of this measure is to:

(1) In counties with fewer than two hundred thousand residents but more than one hundred thousand residents, amending application requirements for class 10 special licenses, including requirements related to electronic submission, naming, and single applications for certain adjacent parcels of land, and prohibiting the conditional acceptance of applications based on certain factors; and

(2) Increase the maximum percentage of fines assessed by county liquor commissions that may be used to fund public liquor-related educational or enforcement programs.

Your Committee received testimony in support of this measure from one member of the Maui County Council; one member of the Honolulu City Council; Lanikai Brewing Company; Maui Brewing Co.; Maui Chamber of Commerce; Highgate Hotels; and four individuals. Your Committee received comments on this measure from the Liquor Commission of the City and County of Honolulu and Events International.

Your Committee finds that some requirements for temporary liquor licenses in the county of Maui are overly burdensome and provide little public benefit, requiring applicants to submit an application in person and obtain various departmental clearances. Your Committee further finds that effective educational and enforcement programs are necessary to mitigate the impact that alcohol consumption has on public health and safety. Your Committee recognizes that county liquor commissions are authorized to use a portion of the fines assessed against liquor licenses to fund such programs and that the amount authorized for these purposes could be increased to better support initiatives that reduce alcohol-related harm. This measure removes unnecessary requirements for temporary liquor licenses in the county of Maui and provides additional funding for liquor-related educational and enforcement programs.

Your Committee has amended this measure by:

(1) Clarifying that class 10 special licenses may be granted for a period not to exceed three days per application; 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 Economic Development & Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2835, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2835, S.D. 1, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Technology,

____________________________

GREGGOR ILAGAN, Chair