Washington, D.C., 04/01/2025 – The Hawaii Senate Judiciary Committee rejected HB 108, a bill proposing direct-to-consumer (DTC) spirits shipping, following testimony highlighting serious concerns about public safety, underage drinking, and increased drunk driving risks.
During the committee hearing, Chair Karl Rhoads explained his decision to defer the bill, stating: “There’s also testimony indicating there’s concerns this bill may cause a worse drunk driving problem than we already have, and encourage or make it easier for underage people to drink.”
This decision underscores the recognition among lawmakers nationwide that DTC alcohol shipping introduces serious risks that cannot be effectively mitigated. Unlike the regulated three-tier system, which ensures accountability, tax collection, and rigorous age verification, DTC shipping creates loopholes that make it easier for minors to obtain alcohol, weaken enforcement, and undermine public safety.
DTC: A Bad Policy with Proven Risks
Real-world data demonstrates the dangers of deregulating alcohol sales through direct shipment. In states where compliance audits have been conducted, a significant number of DTC shipments have been found to violate existing laws, including shipments to minors, tax evasion, and failure to adhere to state-specific regulations. Common carriers like FedEx and UPS do not consistently verify age at delivery, making it nearly impossible to prevent minors from receiving alcohol through DTC channels.
READ MORE: DTC KNOW THE WHOLE STORY
Furthermore, recent state enforcement actions have revealed that many out-of-state shippers fail to comply with local laws, leading to revenue loss and regulatory gaps that harm responsible businesses operating within the legal framework. By rejecting HB 108, Hawaii lawmakers have taken a responsible stance in preventing these unintended consequences and ensuring that public health and safety remain a priority.
Lawmakers Continue to Reject DTC Expansion Nationwide
The failure of HB 108 mirrors similar outcomes in other states where legislators, after close scrutiny, have denied efforts to enact DTC alcohol shipping. As responsible lawmakers examine the impact of DTC proposals, they consistently find that such policies prioritize convenience over safety, dismantle established regulatory safeguards, and increase risks to communities.
Opponents of the bill, including industry leaders, public safety advocates, and law enforcement officials, commended the committee’s decision as a necessary step in maintaining responsible alcohol distribution and preventing harm to communities.
“Expanding DTC spirits shipping may sound like a modernization effort, but in reality, it weakens enforcement, facilitates underage access, and strips states of their ability to regulate a socially sensitive product. HB 108’s failure reaffirms what we’ve seen across the country—when regulators take a hard look at the risks, they reject DTC expansion in the interest of public health and safety,” said WSWA EVP, Government Affairs Dawson Hobbs.
For more information on the risks of DTC alcohol shipping, visit www.WSWA.org.