Informing the Legislature that on May 27, 2025, the Governor signed the following bill into law: HB1370 HD1 SD1 CD1 (ACT 090).

This bill amends Hawaii's definition of "draft beer" from requiring a container of seven gallons or more to five gallons or more. It directly affects restaurants, bars, and small breweries that serve draft beer, as it will allow containers between five and seven gallons to qualify for the lower tax rate previously reserved for larger draft containers. The key change lowers the container size threshold to better align with common industry practices, where many kegs are smaller than seven gallons due to space constraints. The law takes effect on January 1, 2026.