STAND. COM. REP. NO. 2579

Honolulu, Hawaii

RE: S.B. No. 3062

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Education, to which was referred S.B. No. 3062 entitled:

"A BILL FOR AN ACT RELATING TO LIQUOR,"

begs leave to report as follows:

The purpose and intent of this measure is to provide that the University of Hawaii and its campuses and state libraries may utilize liquor in certain educational settings without obtaining liquor licenses, subject to certain limitations.

Your Committee received testimony in support of this measure from the University of Hawaiʻi System, Hawaiʻi State Public Library System, and Kapolei Chamber of Commerce.

Your Committee received testimony in opposition to this measure from one individual.

Your Committee received comments on this measure from the Department of Education.

Your Committee finds that the University of Hawaii's culinary and hospitality programs are currently forced to navigate a complex, county-by-county licensing process to fulfill basic curriculum requirements relating to the chemistry of alcohol in food preparation and logistics of beverage management. This creates a disconnect between the classroom and the industry, leaving students underprepared for careers in these fields. In order to expand economic activity in the State, your Committee believes that connecting students to viable career pathways through work-based learning is essential. Empowering the University of Hawaii and Hawaii State Public Library System to responsibly provide alcoholic beverages in educational spaces will enhance the campus experience and reflect real-world business and professional networking environments. This measure will strengthen local educational opportunities and better prepare students for the workforce.

Your Committee acknowledges the concerns raised in testimony by the University of Hawaii System that additional provisions requiring server training and clarifying the permissible circumstances for public liquor sales would allow this measure to more effectively achieve its goals by training students in the legal and safe service of alcohol and ensuring campus restaurants function as training labs, not commercial competitors to local businesses. Your Committee also notes the concerns raised by the Department of Education that liquor possession or use is strictly prohibited on Department campuses and liquor licenses may not be issued within five hundred feet of a Department school. Therefore, amendments to this measure are necessary to address these matters.

Accordingly, your Committee has amended this measure by:

(1) Specifying that liquor may only be sold to the general public by the University of Hawaii and its campuses if the sale is incidental to its educational programs;

(2) Requiring any student or staff member of the University of Hawaii selling liquor to the public to complete Liquor Commission-approved server training;

(3) Clarifying that only state libraries that are not located on Department of Education property or near public schools, as provided in applicable rules and laws, may utilize liquor without obtaining a liquor license for the purposes of an educational exhibition; and

(4) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3062, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3062, S.D. 1, and be referred to your Committee on Commerce and Consumer Protection.

Respectfully submitted on behalf of the members of the Committee on Education,

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DONNA MERCADO KIM, Chair