RELATING TO INTOXICATING LIQUOR.

HB108

HOUSE OF REPRESENTATIVES

H.B. NO.

108

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to intoxicating liquor
.

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

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SECTION 1.
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The legislature finds that the 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.
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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.

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The
legislature further finds that under state law, direct business-to-consumer
shipping of alcoholic beverages is limited to wineries shipping wine.
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Thus, non-winery manufacturers are prohibited
from directly shipping alcoholic beverages, including beer and distilled
spirits, to consumers.
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Direct
business-to-consumer shipping will allow these manufacturers to serve existing
customers while also pursuing additional markets and new customer bases.
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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.
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In an effort to encourage commerce, the legislature has determined that
the State must allow manufacturers to ship their goods to, from, and within the
State.

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

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

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"
�281-
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Direct shipment of beer and distilled
spirits by manufacturers.

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(a)
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Any person holding:

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

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(2)
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Either:

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

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(B)
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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.

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(b)
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Beginning July 1, 2025, 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:

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

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

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

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(3)
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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;

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(4)
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Pay all applicable general excise
and gallonage taxes.
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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

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

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(c)
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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.
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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.

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(d)
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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.
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Knowingly violating this section is a
misdemeanor.

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(e)
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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).

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

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SECTION 3.
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New statutory material is underscored.

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SECTION 4.
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This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Beer;
Distilled Spirits; Direct Shipping; Manufacturers

Description:

Allows
direct shipment of beer and distilled spirits by certain licensees.
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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.