Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Intergovernmental Affairs, to which was referred S.B. No. 2551 entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the Liquor Commission to reduce the time it has to decide whether to grant or refuse an application from thirty days to fifteen days.

This measure also allows the commission to remove names from the registered voter list for lack of residency and to deem an application denied if the commission does not make a decision to grant or refuse an application within the specified time.

The Chair of the Waikiki Neighborhood Board and eleven individuals submitted testimony in support of this measure. The Honolulu Liquor Commission, and one individual submitted comments on this measure. One individual submitted testimony in opposition.

Your Committee finds that it is important to use current property records to satisfy the notice requirement when a preliminary public hearing is held on an application for a liquor license. It is equally important to use current residency information when determining whether a majority of the registered voters have duly filed protests against the granting of a license. As one testifier indicated, a registered voter may no longer occupy property within the affected area, but may still be included in the total number of registered voters and skew the determination of whether a majority exists. It is important that the Liquor Commission have discretion in this regard. Concerns were also raised about an owner of multiple properties having more than one vote.

Upon further consideration, your Committee amended this measure by:

Your Committee respectfully requests the Committee on Judiciary and Hawaiian Affairs to give further consideration to the automatic denial provision.

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. 2551, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2551, S.D. 1, and be referred to the Committee on Judiciary and Hawaiian Affairs.