STAND. COM. REP. NO.  1652

Honolulu, Hawaii

                , 2009

RE:   S.B. No. 470

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 470 entitled:

"A BILL FOR AN ACT RELATING TO LIQUOR,"

begs leave to report as follows:

     The purpose of this bill is to amend certain provisions relating to liquor industry licensing, practices, and adjudication process.  Among other things, this bill:

     (1)  Allows liquor license issuances and renewals for applicants complying with an installment plan agreement for the payment of delinquent taxes;

     (2)  Allows a certain amount of the fines collected from licensees each year to be used for public liquor-related educational or enforcement programs;

     (3)  Amends the statute on liquor license transfers to more accurately reflect modern business enterprise organizations; and

     (4)  Extends the time frame for liquor commissions to grant or refuse a liquor license application following a public hearing.

     The Departments of Liquor Control of the Counties of Kauai, Maui, and Hawaii, and the City and County of Honolulu Liquor Commission supported this bill.  The Department of Taxation opposed this bill.  The Attorney General submitted comments.

     Your Committee has amended this measure by:

     (1)  Deleting the provision that includes personal delivery as a form of written notice provided to all parties for administrative hearings under the Hawaii Administrative Procedure Act;

     (2)  Changing its effective date to July 1, 2009, and inserting a repeal date of June 30, 2011; and

     (3)  Making technical, nonsubstantive amendments for style, clarity, and consistency.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 470, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 470, H.D. 1.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair