STAND. COM. REP. NO. 2311

Honolulu, Hawaii

RE: S.B. No. 2911

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committees on Commerce and Consumer Protection and Energy and Intergovernmental Affairs, to which was referred S.B. No. 2911 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:

(1) Allow direct shipment of beer and distilled spirits by certain licensees; and

(2) Require the liquor commission of each county to adopt rules and regulations.

Your Committees received testimony in support of this measure from the Mayor of the County of Kauaʻi, Brewers Association, Maui Chamber of Commerce, Lanikai Brewing Company LLC, Maui Brewing Co., Beer Lab Hawaii, Grassroot Institute of Hawaii, Hawaiʻi Farm Bureau, Maui Wine, and Kauaʻi Island Brewing Co.

Your Committees received testimony in opposition to this measure from the Hawaii Food Industry Association, ABC Stores, Hawaii Liquor Wholesalers Association, Wine and Spirits Wholesalers of America, Distilled Spirits Council of the United States, and National Beer Wholesalers Association.

Your Committees received comments on this measure from the Department of the Attorney General.

Your Committees find that breweries and distilleries in the State are prohibited from directly shipping their products to consumers, both within the State and to consumers in other states. This measure would support local businesses and provide wider choice to consumers through fairer competition by enabling breweries and distilleries to ship directly to consumers similar to the privileges already granted to wineries.

Your Committees have amended this measure by:

(1) Deleting language that would have imposed manufacturing volume restrictions on persons out-of-state applying for a direct beer and distilled spirits shipper permit;

(2) Deleting language that would have required licensure in the county of manufacture;

(3) Inserting language that requires licensure and reporting in the shipping destination county;

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

(5) Making technical, nonsubstantive amendments 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 S.B. No. 2911, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2911, 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