CONFERENCE COMMITTEE REP. NO. 68-10

 

Honolulu, Hawaii

                 , 2010

 

RE:    S.B. No. 2545

       S.D. 2

       H.D. 2

       C.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Madam and Sir:

 

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2545, S.D. 2, H.D. 2, entitled:

 

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

 

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

 

     The purpose of this measure is to allow class 14 brewpub licensees to:

 

     (1)  Manufacture up to thirty thousand barrels of malt beverages on the licensee's premises during the license year;

 

     (2)  Sell malt beverages manufactured on the licensee's premises in brewery-sealed containers directly to class 14 licensees; and

 

     (3)   Conduct manufacturing activities at one location other than the licensee's premises, so long as the manufacturing takes place in Hawaii and the other location is properly licensed under the same ownership.

 

     Your Committee on Conference believes that reasonable hours of restriction on operations should be enacted for restaurants or other premises where food, beverages, or entertainment are provided. 

 

     Your Committee on Conference is cognizant of the recent trend of restaurants to become BYOB ("bring your own bottle") establishments.  The simplicity and flexibility of the BYOB format appeals to restaurant operators.  Freed of being subject to liquor regulation, BYOBs are popular particularly among quaint restaurants and are growing in numbers on Oahu and beginning to grow on the neighbor islands.  However, licensed liquor establishments pay licensing fees while BYOBs do not.  The liquor licensing fees are applied to enforcement, which include BYOBs that do not pay licensing fees.

 

     Your Committee has amended this measure by:

 

     (1)  Creating a new class 17 bring-your-own-beverage license which shall be mandatory for counties with a population of over 500,000 and permissive for counties with a population of 500,000 or under, and establishing requirements for a class 17 license;

 

     (2)  Restricting the consumption of liquor in restaurants or other premises where food, beverages, or entertainment are provided to the hours between 6:00 a.m. and 12:00 a.m. and requiring establishments that desire to operate after 12:00 a.m. until 2:00 a.m. to obtain a class 17 license;

 

     (3)  Requiring Class 17 licensees to maintain at all times liquor liability insurance coverage in an amount not less than $1,000,000, except for class 4 convenience minimarts commonly referred to as neighborhood mom and pop stores;

 

     (4)  Allowing a patron of any class of license premises to remove wine, liquor, or beer that was purchased or brought onto the premises of the licensee engaged in meal service for consumption with a meal; provided that it is recorked or resealed in its original container;

 

     (5)  Clarifying the provision of existing law that prohibits a license to be issued to any person not deemed by the Liquor Commission to be a fit and proper person to have a license;

 

     (6)  Changing the effective date to July 1, 2010; and

 

     (7)  Making technical, nonsubstantive amendments.

 

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 2545, S.D. 2, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2545, S.D. 2, H.D. 2, C.D. 1.

 

Respectfully submitted on behalf of the managers:

 

ON THE PART OF THE HOUSE

 

ON THE PART OF THE SENATE

 

____________________________

ANGUS L.K. MCKELVEY, Co-Chair

 

____________________________

J. KALANI ENGLISH, Chair

____________________________

GLENN WAKAI, Co-Chair

 

____________________________

ROSALYN H. BAKER, Co-Chair

____________________________

JON RIKI KARAMATSU, Co-Chair