Senate committees recommend passage of bill to allow direct shipment of beer and spirits, amid industry split over underage access and tax collection

On Jan. 29 the Senate Committee on Commerce and Consumer Protection and partner committees debated SB 976, a bill that would permit certain producers to ship beer and distilled spirits directly to consumers and require county liquor commissions to adopt implementing rules.

Local producers and trade groups testified in support, saying the change would help craft brewers and distillers reach customers, grow direct sales and bring back economic activity. Sam DeWitt of the Brewers Association said direct-to-consumer shipping supports small businesses and helps introduce customers to niche products.

Proponents emphasized that wine direct-to-consumer programs have worked in the state for decades and that the craft-distilling and craft-brewing industries have matured since wine-ship reforms were enacted. Bob Gunther and Maui Brewing representatives said the change would boost local firms and create more opportunities to host or attract larger events.

Opponents, including the Hawaii Alcohol Policy Alliance, warned of risks around underage access and tax collection. Rick Collins of the Hawaii Alcohol Policy Alliance said beer and spirits are the primary substances consumed by underage drinkers in recent state surveys and argued that direct shipments would complicate county liquor departments’ ability to reconcile excise and sales taxes and to detect tainted products: “If you taint spirits even a little bit, that can cause immense harm to people,” Collins told the committee.

Industry witnesses said shipping controls used for wine — adult signature on delivery, ID checks and shipper reporting — are already in place with carriers and have protected against widespread underage access in other states. Supporters also argued wholesalers’ predictions of market disruption have not materialized in wine markets.

During decision-making the committees recorded a recommendation to pass with amendments; at the end of the joint actions the chairs noted the measure would move forward with defected or delayed effective dates to allow rulemaking. Committee votes and discussion show division: some members expressed opposition on public-safety grounds, while industry and tourism stakeholders pressed for economic benefits.

Why it matters: The bill would change the three-tier distribution model by allowing producers to ship directly to consumers, with implications for tax reporting, county liquor commissions’ enforcement workloads and underage access controls.

What’s next: Committees recommended passage with amendments and asked counties and liquor commissions to prepare rules; sponsors and opponents will likely continue negotiating safeguards in follow-up committee and conference work.