STAND. COM. REP. NO.  1233

Honolulu, Hawaii

                , 2009

RE:   S.B. No. 470

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committees on Consumer Protection & Commerce and Judiciary, to which was referred S.B. No. 470 entitled:

"A BILL FOR AN ACT RELATING TO LIQUOR,"

beg leave to report as follows:

     The purpose of this bill is to improve certain statutory provisions relating to liquor industry licensing, practices, and adjudication processes.  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 City and County of Honolulu Liquor Commission and the Departments of Liquor Control of the Counties of Hawaii, Kauai, and Maui testified in support of this bill.  The Department of Taxation opposed this measure.  The Retail Liquor Dealers Association of Hawaii provided comments.

     Your Committees note that this bill implements the findings of a comprehensive review of the intoxicating liquor law under Chapter 281, Hawaii Revised Statutes, and continues earlier efforts under Act 168, Session Laws of Hawaii 2008, to clarify, update, and otherwise improve this law.  The review was conducted by the four county liquor control departments, including their commissions and adjudication boards, in collaboration with industry representatives.

     As affirmed by the records of votes of the members of your Committees on Consumer Protection & Commerce and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 470 and recommend that it pass Second Reading and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Consumer Protection & Commerce and Judiciary,

____________________________ JON RIKI KARAMATSU, Chair

____________________________ ROBERT N. HERKES, Chair