Bill Text: HI HB2189 | 2022 | Regular Session | Introduced


Bill Title: Relating To Intoxicating Liquor.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2022-01-28 - Referred to ECD, CPC, FIN, referral sheet 3 [HB2189 Detail]

Download: Hawaii-2022-HB2189-Introduced.html

HOUSE OF REPRESENTATIVES

H.B. NO.

2189

THIRTY-FIRST LEGISLATURE, 2022

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

Relating to intoxicating liquor.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The legislature finds that the coronavirus disease 2019 (COVID-19) pandemic and the governmental responses to contain the spread of COVID-19 have disproportionately affected certain manufacturers of alcoholic beverages in the State.  The frequent closure of bars and clubs and prohibition of in-person dining has caused these manufacturers to struggle to find alternative methods of serving their customers, resulting in drastic revenue losses.

     The legislature further finds that under state law, direct business-to-consumer shipping of alcoholic beverages is limited to wineries shipping wine.  Thus, non-winery manufacturers are prohibited from directly shipping alcoholic beverages, including beer and distilled spirits, to consumers.  Direct business-to-consumer shipping will allow these manufacturers to serve existing customers while also pursuing additional markets and new customer bases.  Direct business-to-consumer shipping will also assist smaller manufacturers that are struggling to find wholesalers willing to sell and represent the manufacturer's small brands by giving those manufacturers direct access to customers.  In an effort to encourage commerce, the legislature has determined that the State must allow manufacturers to ship their goods to, from, and within Hawaii.

     Accordingly, the purpose of this Act is to allow the direct shipment of beer and distilled spirits by certain licensees.

     SECTION 2.  Chapter 281, Hawaii Revised Statutes, is amended by adding a new section to part III to be appropriately designated and to read as follows:

     "§281-     Direct shipment of beer and distilled spirits by manufacturers.  (a)  Any person holding:

     (1)  A general excise tax license from the department of taxation; and

     (2)  Either:

          (A)  A class 1, class 14, or class 18 license to manufacture beer or distilled spirits under section 281-31; or

          (B)  A license to manufacture beer or distilled spirits issued by another state,

may pay any applicable fees and obtain a direct beer and distilled spirits shipper permit from the liquor commission of the county in which the beer or distilled spirits is manufactured that authorizes the holder to directly ship beer and distilled spirits to persons in any county of this State; provided that any person who holds a license to manufacture beer or distilled spirits pursuant to paragraph 2(B) may obtain a direct beer and distilled spirits shipper permit from the liquor commission of the county in this State to which the person will be shipping beer or distilled spirits.

     (b)  Beginning July 1, 2022, the holder of the direct beer and distilled spirits shipper permit may sell and ship beer and distilled spirits to any person twenty-one years of age or older in any county of the State for personal use only and not for resale, and shall:

     (1)  Ship beer and distilled spirits directly to the person only in containers that are conspicuously labeled with the words:

          "CONTAINS ALCOHOL:  SIGNATURE OF PERSON AGE 21 YEARS OR OLDER REQUIRED FOR DELIVERY.";

     (2)  Require that the carrier of the shipment obtain the signature of any person twenty-one years of age or older before delivering the shipment;

     (3)  Report no later than January 31 of each year, to the liquor commission in each county in which a direct beer and distilled spirits shipment was made, the total amount of beer and distilled spirits shipped to persons in that county during the preceding calendar year;

     (4)  Pay all applicable general excise and gallonage taxes.  For gallonage tax purposes, all beer and distilled spirits sold under a direct beer and distilled spirits shipper permit shall be deemed to be beer and distilled spirits sold in the State; and

     (5)  Be subject to audit by the liquor commission of each county in which a direct beer and distilled spirits shipment has been made.

     (c)  The holder of a license to manufacture beer or distilled spirits issued by another state may annually renew a direct beer and distilled spirits shipper permit by providing to the liquor commission that issued the permit a copy of the license and paying all required fees.  The holder of a class 1, class 14, or class 18 license to manufacture beer or distilled spirits under section 281-31 may renew a direct beer and distilled spirits shipper permit concurrently with the applicable license by complying with all applicable laws and paying all required fees.

     (d)  The sale and shipment of beer and distilled spirits directly to a person in the State by a person that does not possess a valid direct beer and distilled spirits shipper permit is prohibited.  Knowingly violating this section is a misdemeanor.

     (e)  The liquor commission in each county shall adopt rules necessary to carry out the intent and purpose of this section; provided that the liquor commission in each county shall ensure that that liquor commission's respective rulemaking actions do not interfere with, or unduly delay, the date prescribed in subsection (b).

     (f)  For the purposes of this section, "distilled spirits" shall have the same meaning as in section 244D-1."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on June 1, 2022.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Beer; Distilled Spirits; Direct Shipping; Manufacturers

 

Description:

Allows direct shipment of beer and distilled spirits by certain licensees.  Requires the liquor commission of each county to adopt rules and regulations.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

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