Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Judiciary and Hawaiian Affairs, to which was referred S.B. No. 2551, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the liquor commission to take thirty, rather than fifteen, days to make a decision on an application, and to give it the discretion to extend this time from thirty days to forty-five days.

In addition, this measure:

Your Committee received testimony in support of this measure from Stahl, Inc., the Waikiki Neighborhood Board, and twelve individuals. E&J Lounge Company testified in opposition to this measure. Three individuals submitted comments on this measure.

Your Committee finds that the automatic permit denial provision of this measure requires a longer time period for the liquor commission to act, to avoid automatic denials due to scheduling problems.

Your Committee further finds that it is important for the liquor commission to use current residency information when determining whether a majority of the registered voters in a community have duly filed a protest against the granting of a liquor license. However, your Committee notes that the amendment to allow the liquor commission to remove names from the register voters list for lack of residency is not binding on the Office of Elections.

Your Committee also notes that in response to a concern raised by the Committee on Intergovernmental Affairs regarding the automatic denial of an application, the Attorney General stated that the automatic denial of an application is a policy issue that should withstand any due process challenge.

As affirmed by the record of votes of the members of your Committee on Judiciary and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2551, S.D. 1, and recommends that it pass Third Reading.