Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Intergovernmental Affairs, to which was referred S.B. No. 1546 entitled:

begs leave to report as follows:

The purpose of this measure is to allow the counties to adopt ordinances to manage and regulate the liquor commissions in their jurisdictions and to implement liquor control statutes.

Your Committee received testimony in support of this measure from four individuals. Testimony in opposition was received from the Hawaii Food Industry Association and Anheuser Busch Companies.

Current law regulates liquor sales and consumption through county liquor commissions (commissions) under chapter 281, Hawaii Revised Statutes (HRS). The commissions have the exclusive jurisdiction, power, authority, and discretion in the regulation.

According to testimony, this measure was prompted by the adverse publicity stemming from investigations by law enforcement authorities of employees of a liquor commission. The elected authorities in the county and the State are powerless to effect any remedial action or changes to liquor commission operations because of the current law of practical autonomy granted to liquor commissions. Your Committee finds that there is a need to allow some county council authority over liquor commissions.

Your Committee has accordingly amended this measure to empower county councils to have and exercise oversight authority as appropriate. Your Committee has deliberately drafted the amendment to be somewhat broad, intending that the county council exercise its oversight discretion appropriately. The intent of your Committee is that the liquor commission maintain its autonomy in operations and regulatory activities but have the statutory authority to step in as needed when appropriate, particularly in instances involving possible criminal wrongdoing. This measure does not empower the county council to enact ordinances to supercede the provisions of chapter 281, HRS. The county council may launch its own investigation, conduct public hearings, and take action on personnel change consistent with law, as examples of the contemplated county council exercise of authority under this measure.

As affirmed by the record of votes of the members of your Committee on Intergovernmental Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1546, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1546, S.D. 1, and be referred to the Committee on Judiciary and Hawaiian Affairs.