Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 900, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to establish additional requirements and procedures for the investigation, processing, and approval or denial of liquor license applications.

Testimony in support of this measure was received from the Ala Moana/Kakaako Neighborhood Board No. 11, Waikiki Citizens Patrol, and eleven individuals. The City and County of Honolulu Liquor Commission and Departments of Liquor Control for the counties of Hawaii, Kauai, and Maui testified in opposition to the measure. An individual testified with concerns about the measure.

Your Committee finds that residents and businesses that may be potentially adversely affected by the granting of a liquor license in their neighborhoods should have a meaningful opportunity for input during the liquor license application process and that the process should be neutral and unbiased. Your Committee further finds that a number of concerned citizens have testified that this has not been the case, and they have expressed considerable frustration that the process is not more open to public concerns.

Your Committee has also heard from the agencies responsible for liquor licenses, that some of the proposed amendments would be difficult to comply with and would not give the intended results. Your Committee acknowledges that this is a difficult, and often emotional, area of concern for all the parties involved, and that a balanced response must address these differing points of view to the extent possible.

Your Committee has amended this measure accordingly to:

Your Committee would also like to respond to a number of additional concerns that have been raised but have not been dealt with specifically in this draft of the measure. These are all issues that will be given consideration as the measure moves through subsequent committees.

The definition of "premises" needs additional clarification to address the concerns raised by hotels which include the hotel grounds as part of their premises, and by those liquor establishments that may be located in a larger facility, such as a shopping mall.

The proposed language to define a majority of owners or lessees of a property has also raised concerns, with regards to how the votes of a property should be counted. This provision would give one "vote" to each property, but it is unclear whether one-property, one-vote would also apply to other sections of Chapter 281, HRS.

Your Committee also wishes to note that with regard to the concern on the meaning of "public notice" for decision making, the inclusion of the item on the hearing agenda would be considered sufficient public notice, and no further change is necessary.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 900, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 900, S.D. 2.