Makes criminal history record check in accordance with section 846-2.7, HRS, mandatory for liquor license applicants. Requires a state criminal conviction record check to be conducted on managers and employees. Exempts nonprofits from fingerprinting. (SD1)

A BILL FOR AN ACT

SECTION 1. The legislature finds that prostitution, gambling, and the use of illicit drugs are serious crimes that have far-reaching social and economic consequences within our State. The legislature is also concerned about the rise in alcohol-related traffic fatalities.

Section 281-53.5, Hawaii Revised Statutes, currently permits each county liquor commission to adopt rules requiring criminal background checks of applicants for liquor dispenser licenses and to deny licenses when the applicants' backgrounds "tend to indicate the applicant may be unsuited for obtaining a liquor license". The legislature further finds that each of the county liquor commissions has voluntarily adopted administrative rules that implement this section.

This Act requires criminal background checks, and specifies that liquor licenses or permits shall be denied to applicants who have been convicted of criminal offenses involving the use or distribution of illicit drugs, prostitution, or gambling.

The legislature further finds that each county liquor commission has also adopted administrative rules requiring the registration of managers and employees of liquor dispensing establishments with the respective county liquor commissions. Currently, the registration process in each county requires only that applicants provide proof of social security registration and a tuberculosis test. This Act also requires that applicants for manager or employee permits disclose, under penalty for unsworn falsification to authorities, convictions for driving under the influence and submit to criminal background checks. This Act specifies that any applicant convicted of any criminal offense involving the sale, distribution, or use of illicit drugs, prostitution, or gambling, shall not be issued a license or permit. In addition, any licensee or permittee who is subsequently convicted of any offense that would have resulted in the denial of a license or permit would automatically forfeit that license or permit.

The legislature further finds that, to discourage crime generally and to reduce the likelihood that licensees participate in or encourage criminal activity, current law allows applicants for liquor licenses to be subject to a criminal history record check conducted in accordance with section 846-2.7, Hawaii Revised Statutes.

State law allows each county to adopt rules to require criminal history record checks for applicants for liquor licenses and requires each license applicant to disclose whether the applicant has been convicted of a crime that would "tend to indicate that the applicant may be unsuited for obtaining a liquor license." Each county liquor commission has adopted rules requiring prospective employees, including managers, to register with the respective county liquor commission prior to employment as managers and employees of dispenser, cabaret, hotel, club, restaurant, and brewpub licensees in the section of the licensed premises where liquor is sold, served, or consumed.

The legislature further finds that a state criminal conviction record check prior to employment of managers and employees in establishments where liquor is sold, served, or consumed would reduce the likelihood of those individuals' participation in or toleration of criminal activity. The legislature further finds that a criminal history record check conducted in accordance with section 846-2.7, Hawaii Revised Statutes, should be required as a condition of issuing a liquor license to an applicant.

The purpose of this Act is to require that:

SECTION 2. Section 281-53.5, Hawaii Revised Statutes, is amended to read as follows:

"[[]§281-53.5[]] County liquor commissions; criminal history record check. (a) The respective county liquor [commissions may request] commission shall conduct a criminal history record check [of] on an applicant for a liquor license in accordance with section 846-2.7. The criminal history record check, at a minimum, shall require the applicant to disclose whether:

Any conviction pursuant to paragraph (2) shall automatically disqualify the applicant for any license under this chapter.

Any false statement or failure to disclose by the applicant shall constitute the offense of unsworn falsification to authorities under section 710-1063.

For the purpose of this section, the criminal [history] conviction disclosure made by the applicant [may] shall be verified by the liquor commission by means of criminal history record information obtained through the Hawaii criminal justice data center. The applicant shall provide the Hawaii criminal justice data center with personal identifying information which shall include but not be limited to the applicant's name, social security number, date of birth, and gender. This information shall be secured only for the purpose of conducting the criminal history record check authorized by this section.

[(b) The applicant shall submit to the liquor commission:

(c) The liquor commission shall obtain criminal history record information through the Hawaii criminal justice data center on the applicant. The information obtained shall be used exclusively for the stated purpose for which it was obtained and shall be subject to applicable federal laws and regulations currently or hereafter in effect.]

(b) The respective county liquor commissions shall conduct a state criminal conviction record check of all employees, including managers, of all dispenser, cabaret, hotel, club, or brewpub licensees who are required to licensed with the county liquor commission prior to the start of employment. The criminal conviction check, at a minimum, shall require the prospective employee or manager to disclose whether:

Any conviction pursuant to paragraph (2) shall automatically disqualify the prospective employee or manager from employment with any dispenser, cabaret, hotel, club, or brewpub liquor licensee.

(c) Any false statement or failure to disclose by the prospective employee or manager shall constitute unsworn falsification to authorities under section 710-1063.

(d) In no event shall a trustee, officer, or executive of a nonprofit entity be required to submit to fingerprinting for purposes of this section."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.