Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Transportation, Military Affairs, and Government Operations, to which was referred S.B. No. 807 entitled:

begs leave to report as follows:

The purpose of this measure is to amend various provisions relating to residents' and property owners' rights to protest and prevent a liquor license from being issued in their neighborhood.

Your Committee received testimony in support of this measure from four concerned citizens. Your Committee also received petitions signed by over 100 persons in support of this measure.

Your Committee finds that existing law regarding liquor license applications contains several provisions to allow residents living near the applicant's business to protest the granting of a license. If a specified percentage of neighbors protest, the liquor commission must deny the license.

This measure amends those provisions. First, this measure deletes the existing provision of law that requires the liquor commission to deny a license application for a business located within 500 feet of a playground or school, if 40 per cent of adjacent residents object.

Also, this measure deletes the provisions of law that owners of multiple pieces of property may register a protest vote for each piece of property. Under existing law, an owner of five properties located near a liquor license applicant may register five votes against that project. While your Committee believes that it is often fair for an owner of multiple properties to have multiple votes, nonetheless your Committee has agreed to move this measure forward for further discussion.

In addition, this measure clarifies the existing provision of law that requires the liquor commission to deny an application, regardless of the location of the applicant's business, if a majority of adjacent neighbors object.

Specifically, this measure clarifies that in order for a license to be denied by statute, a majority of current property owners must object; under existing law, this issue was unclear.

Finally, this measure changes the law with respect to objections by associations of property owners. Under existing law, if a majority of association members voted against or for a license application, that majority vote was deemed a vote of the entire association. This measure removes that presumption. Moreover, this measure removes the provision that "each property counts only once." With this amendment, several property owners can register their votes even if they live on the same single property.

Your Committee made a technical, nonsubstantive amendment to this measure.

As affirmed by the record of votes of the members of your Committee on Transportation, Military Affairs, and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 807, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 807, S.D. 1, and be placed on the calendar for Third Reading.