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Committee approves direct‑to‑consumer shipping for breweries and distillers with attorney general amendments
Summary
The House Committee on Judiciary & Hawaiian Affairs advanced House Bill 108 (HD1) to allow certain Hawaii breweries and distilleries to ship directly to consumers, adopting attorney general amendments to reduce constitutional risk.
The House Committee on Judiciary & Hawaiian Affairs voted to advance House Bill 108 (HD1), which would authorize direct‑to‑consumer (DTC) shipments of beer and distilled spirits by certain in‑state licensees and require county liquor commissions to adopt implementing rules.
Why it matters: Supporters, including Hawaii craft brewers and distillers, said DTC shipping would let small producers reach customers beyond Hawaii and compete on equal footing with wine producers, who generally have broader DTC privileges. The attorney general flagged constitutional concerns and recommended amendments to avoid discrimination against out‑of‑state manufacturers under the dormant commerce clause.
Attorney General’s concerns: Deputy Attorney General Jennifer Wahei Apok summarized legal comments, telling the committee that portions of the draft could be challenged under the federal Commerce Clause if the bill treated in‑state and out‑of‑state businesses differently. She recommended that provisions conditioning in‑state shipping privileges on reciprocal privileges in other states be revised to avoid potential constitutional exposure.
Industry testimony: Naehelani Breeland, president and co‑founder of Ola Brew, and representatives from Koloa Rum Company and other small producers said DTC shipping is a proven, auditable process used for wine and would support local agriculture, exporters and visitor connections without increasing underage access. Koloa Rum Company highlighted that many states allow wine DTC and fewer allow beer and spirits, and that opening DTC would help small producers test new markets.
Committee action and next steps: The committee adopted attorney general and technical amendments and moved HB108 (HD1) to the finance committee for further consideration. Committee members said they intended to revise language to reduce constitutional risk while preserving DTC access for small Hawaii producers.
Ending note: Supporters urged modernization to match e‑commerce expectations; the attorney general’s recommended edits were intended to reduce the risk of a Commerce Clause challenge.
