Honolulu, Hawaii



RE:    H.B. No. 824

       H.D. 2

       S.D. 1




Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii




     Your Committee on Commerce and Consumer Protection, to which was referred H.B. No. 824, H.D. 2, entitled:




begs leave to report as follows:


     The purpose and intent of this measure is to require any express carrier company, common or contract carrier, except water carriers as defined and regulated by the Surface Transportation Board of the United States, or other person that transports liquor from outside the State for delivery in the State to prepare and file a monthly report with the liquor commission or liquor control adjudication board of each county.


     Your Committee received testimony in support of this measure from the Hawaii Liquor Wholesalers Association.


     Your Committee finds that direct shipment of wine is allowed under existing law, as small local wineries are not regularly able to find licensed wholesalers to distribute their wine to consumers outside their county.  Other states that also allow direct shipment have found, through carrier reporting, that large amounts of liquor have been shipped into their states without payment of liquor, excise, and income tax, resulting in a loss of tax revenue to the states.  Likewise, in Hawaii, illegal shipments of liquor hurt the State's economy, can result in loss of income and jobs to local residents, and constitutes unlawful and unfair competition.  Accordingly, this measure requires the carriers of liquor to report the amount of statewide liquor being shipped and shipper information to the liquor commissions or liquor control adjudication boards, to determine and analyze the shipments made to each county and confirm whether the shipper has complied with the requirements to obtain permits and pay all applicable taxes.


     Your Committee has amended this measure by inserting an effective date of July 1, 2021.


     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 H.B. No. 824, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 824, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.


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