CONFERENCE COMMITTEE REP. NO. 137

Honolulu, Hawaii

                 , 2017

RE:    H.B. No. 1465

       H.D. 2

       S.D. 2

       C.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sirs:

     Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 1465, H.D. 2, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO LIQUOR,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this measure is to update statutory language on liquor license transfer, application, and operating procedures.

     More specifically, this measure, among other things:

     (1)  Accounts for both member managed and manager managed limited liability companies under liquor licensing statutes;

     (2)  Allows liquor license holders that are partnership entities or limited liability companies to avoid license transfer requirements upon admission or withdrawal of certain members, partners, or managers of the license holding entity or company by notifying the Liquor Commission of the change within thirty days;

(3)  Clarifies liquor license procedures and criminal history record check requirements for publicly-traded companies;

(4)  Provides flexibility to the Liquor Commission to hold a license in safekeeping status as an alternative to license cancellation, due to cessation of a business;

     (5)  Clarifies conditions under which publicly-traded companies or entities solely owned by a publicly-traded entity may be disqualified for licensure;

     (6)  Prohibits a non-primary decision-maker from coercing, pressuring, or unduly influencing a primary decision-maker to engage in any unlawful activity relating to the purchase and sale of liquor; and

     (7)  Allows the Liquor Commission to issue a temporary license when an applicant, transferor, or transferee is actively challenging a tax matter that prevents the issuance of the appropriate certificate.

     Your Committee on Conference has amended this measure by:

     (1)  Requiring the Liquor Commission to issue a temporary license that is valid for the period of time necessary to resolve a valid challenge by an applicant, transferor, or transferee of a tax matter that prevents the issuance of the appropriate certificate;

     (2)  Changing its effective date from July 1, 2030, to upon its approval; and

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

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 1465, H.D. 2, S.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 1465, H.D. 2, S.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________ CLARENCE K. NISHIHARA Chair	____________________________ ROY M. TAKUMI Co-Chair
____________________________ STANLEY CHANG Co-Chair	____________________________ ROMY M. CACHOLA Co-Chair
____________________________ GILBERT S.C. KEITH-AGARAN Co-Chair