STAND. COM. REP. NO.980

Honolulu, Hawaii

, 2001

RE: S.B. No. 900

S.D. 2

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred S.B. No. 900, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO LIQUOR LICENSE APPLICATIONS,"

begs leave to report as follows:

The purpose of this measure is to provide greater procedural protection to communities in liquor license application proceedings before the county liquor commissions (Commission).

This bill amends the law applicable to liquor license applications that were previously denied, refused, or withdrawn, by:

(1) Providing that regardless of the circumstances, no application may be granted unless the applicant shows a substantial change in the circumstances causing the previous action on the application;

(2) Requiring the investigator's report to include evidence, provided by the applicant, of this substantial change;

(3) Requiring seven days notice of a preliminary hearing on the application be provided to persons submitting a written request for notice; and

(4) Adding neighborhood board decisions to the factors that may be considered in granting or denying the application.

The bill provides more public access to the report made by investigators concerning the application by:

(1) Requiring that the Commission furnish a copy of the investigator's report upon written request; and

(2) Allowing any applicant or protester to challenge an investigator's findings before or at the hearing on the application.

The bill amends the procedures that must be followed in providing notice of a public hearing of an application by:

(1) Requiring that within seven days of mailing notice, the applicant must file an affidavit that notice was mailed, proof of the mailing, a master list of those required by law to be given notice, and a list of persons actually mailed notice;

(2) Prohibiting the applicant from including promotional information with the notice;

(3) Requiring the Commission to make the affidavit and master and mailing lists available to the public upon request; and

(4) Requiring that at least seven days notice of rehearing be provided by the Commission.

The bill adds public hearing and decision-making procedures by:

(1) Requiring the Commission to make the list of "protesters" available to the applicant and any protester before the public hearing;

(2) Prohibiting the applicant from using the list to influence protesters;

(3) Allowing applicants to amend the list and requiring a Commission ruling on amendments and reason for rulings;

(4) Providing that the Commission accept all written or oral testimony at the hearing;

(5) Mandating denial of an application if 40 percent of registered voters or of owners and lessees of record of real estate and shares in cooperative apartments within 500 feet of the premises, file in opposition to the application; and

(6) Requiring public notice, within 30 days of the public hearing, if the Commission wishes to extend from 15 to 30 days, the deadline for rendering a decision on the application.

The measure also defines "licensed premises," "master list," "majority of owners and lessees of record of real estate," and "majority of owners of record of shares in a cooperative apartment."

Testimony in support of the bill was received from several members of the Waikiki Citizens Patrol and numerous concerned individuals. Several individuals supported the bill and suggested amendments. The Departments of Liquor Control of the counties of Hawaii, Maui, and Kauai, submitted testimony in support of the intent of the bill with proposed amendments. Comments were provided by the Ala Moana/Kakaako Neighborhood Board No. 11 and the City and County of Honolulu Liquor Commission, which also suggested amendments.

Your Committee finds that residents and businesses that may be adversely affected by the granting of a liquor license in their neighborhoods should have a meaningful opportunity for input during the liquor license application process, which should be neutral and unbiased. Your Committee has heard a number of concerned citizens testify that this has not been the case, and they have expressed considerable frustration that the process is not more open to public concerns.

 

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 900, S.D. 2, and recommends that it pass Second Reading and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection and Commerce,

____________________________

KENNETH T. HIRAKI, Chair