Report Title:

Liquor Law; Technical Changes

 

Description:

Amends sections of chapter 281 to update the liquor laws.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

2253

TWENTY-FOURTH LEGISLATURE, 2008

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

 RELATING TO amending or repealing various provisions of chapter 281, hawaii revised statutes, intoxicating liquor, for the purpose of clarifying language, correcting errors, and deleting unnecessary and obsolete provisions.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


SECTION 1.  The legislature finds that it is often necessary to review the laws of Hawaii and to update statutes to accommodate new concepts and structures, to clarify language to recognize how various laws are being interpreted and applied, and to delete unnecessary and obsolete provisions of the law.

The purpose of this Act is to make revisions to chapter 281, Hawaii Revised Statutes, to clarify provisions of the law based on how it is being interpreted and applied by the liquor commissions, to recognize the existence of new business structures, such as limited liability partnerships, and to propose changes to facilitate the effective administration and enforcement of the law by the liquor commissions.

     SECTION 2.  Section 281-1, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

     ""Partner" means a partner in a general partnership, limited partnership, or limited liability partnership."

     SECTION 3.  Section 281-4, Hawaii Revised Statutes, is amended to read as follows:

     "§281-4  Liquor consumption on unlicensed premises prohibited, when.  (a)  It shall be unlawful for any person who keeps or maintains any restaurant or other premises where food, beverages, or entertainment are [sold or] provided [for compensation,], or brought in by patrons or guests, whether for compensation or not, or to which members of the public, or members of an organization, resort for food, refreshment, or entertainment, and who is not a licensee of the commission under this chapter, to promote, encourage, aid, or permit the consumption of liquor on the premises, except during the hours between which licensed premises of dispensers are permitted to be open for the transaction of business in the county where the premises are located.

     (b)  It shall be unlawful for any person who is present at any restaurant or other premises where food, beverages, or entertainment are sold [or], provided [for compensation], or brought in by patrons or guests, or to which members of the public, or members of an organization, resort for food, refreshment, or entertainment, and which premises are not licensed by the commission under this chapter, to consume any liquor on the premises, except during the hours between which licensed premises of dispensers are permitted to be open for the transaction of business in the county where the premises are located.

     (c)  It shall be unlawful for any person who keeps or maintains any restaurant or other premises where food, beverages, or entertainment are [sold or] provided [for compensation,] or brought in by patrons or guests, whether compensated or not, to sell or provide [any food] or [beverages] allow the consumption of liquor to or for any of the following persons knowing that such person has, or is about to obtain, liquor for consumption by the person on the premises, to wit:

     (1)  Any minor[,];

     (2)  Any person at the time under the influence of liquor[,];

     (3)  Any disorderly person[,];

     (4)  Any person known to be addicted to the excessive use of liquor[,]; or

     (5)  Any person, for consumption in any vehicle on the premises;

provided that the [sale of or the] providing of [food or  beverages] liquor to or for a minor who has or is about to obtain liquor for consumption by the minor on the premises or allowing the consumption of liquor by a minor shall not be deemed to be a violation of this subsection if, at the time, the person [so selling or] providing [food] or [beverages] allowing the consumption of liquor was misled by the appearance of the minor and the attending circumstances into honestly believing that such minor was of legal age and the person acted in good faith, and it shall be incumbent upon the person to prove that the person so acted in good faith.

     (d)  Within the meaning of this section, the word "premises" includes any vessel as well as any place, with or without a structure thereon, and the hours between which licensed premises of dispensers are permitted to be open for the transaction of business shall be deemed to be those during which such dispensers are permitted to keep open their premises for the sale, service, and consumption of liquor, or any of them."

     SECTION 4.  Section 281-17, Hawaii Revised Statutes, is amended to read as follows:

     "§281-17  Jurisdiction and powers.  (a)  The liquor commission, within its own county, shall have the sole jurisdiction, power, authority, and discretion, subject only to this chapter:

     (1)  To grant, refuse, suspend, and revoke any licenses for the manufacture, importation, and sale of liquors;

     (2)  To take appropriate action against a person who, directly or indirectly, manufactures, sells, or purchases any liquor without being authorized pursuant to this chapter; provided that in counties which have established by charter a liquor control adjudication board, the board shall have the jurisdiction, power, authority, and discretion to hear and determine administrative complaints of the director regarding violations of the liquor laws of the State or of the rules of the liquor commission, and impose penalties for violations thereof as may be provided by law;

     (3)  To control, supervise, and regulate the manufacture, importation, and sale of liquors by investigation, enforcement, and education; provided that [any educational program shall be limited to licensees and their employees and shall be financed through the money collected from the assessment of fines against licensees;] moneys, which are not received from license fees, may be used for education, enforcement, and programs to promote compliance with liquor laws pursuant to the rules of the commission;

     (4)  From time to time to make, amend, and repeal such rules, not inconsistent with this chapter, as in the judgment of the commission seem appropriate for carrying out this chapter and for the efficient administration thereof, and the proper conduct of the business of all licensees, including every matter or thing required to be done or which may be done with the approval or consent or by order or under the direction or supervision of or as prescribed by the commission; which rules, when adopted as provided in chapter 91 shall have the force and effect of law;

     (5)  Subject to chapter 76, to appoint and remove an administrator, who may also be appointed an investigator and who shall be responsible for the operations and activities of the staff.  The administrator may hire and remove [hearing] hearings officers, investigators, and clerical or other assistants as its business may from time to time require, [to] prescribe their duties, and fix their compensation; to engage the services of experts and persons engaged in the practice of a profession, if deemed expedient.  Every investigator, within the scope of the investigator's duties, shall have the powers of a police officer;

     (6)  To limit the number of licenses of any class or kind within the county, or the number of licenses of any class or kind to do business in any given locality, when in the judgment of the commission such limitations are in the public interest;

     (7)  To prescribe the nature of the proof to be furnished, the notices to be given, and the conditions to be met or observed in case of the issuance of a duplicate license in place of one alleged to have been lost or destroyed, including a requirement of any indemnity deemed appropriate to the case;

     (8)  To fix the hours between which licensed premises of any class or classes may regularly be open for the transaction of business, which shall be uniform throughout the county as to each class respectively;

     (9)  To prescribe all forms to be used for the purposes of this chapter not otherwise provided for in this chapter, and the character and manner of keeping of books, records, and accounts to be kept by licensees in any matter pertaining to their business;

    (10)  To investigate violations of this chapter, chapter 244D and, notwithstanding any law to the contrary, violations of the [applicable] department of health's applicable allowable noise levels, through its investigators or otherwise, to include covert operations, and to report violations to the prosecuting officer for prosecution and, where appropriate, the director of taxation to hear and determine complaints against any licensee;

    (11)  To prescribe, by rule, the terms, conditions, and circumstances under which persons or any class of persons may be employed by holders of licenses;

    (12)  To prescribe, by rule, the term of any license or solicitor's and representative's permit authorized by this chapter, the annual or prorated amount, the manner of payment of fees for the licenses and permits, and the amount of filing fees; and

    (13)  To prescribe, by rule, the circumstances and penalty for the unauthorized manufacturing or selling of any liquor.

     (b)  Subject only to this chapter, the commission or board and each member thereof shall have the same powers respecting the administering of oaths, compelling the attendance of witnesses and the production of documentary evidence, and examining the witnesses as are possessed by a circuit court, except that the commission or board and each member thereof shall not be bound by the strict legal rules of evidence.  In addition, the commission or board, through its liquor administrator, shall have the power to require the production of, and to examine any books, papers, and records of any licensee [which] that may pertain to the licensee's business under the license or [which] that may pertain to a matter at a hearing before the commission or board or to an investigation by the commission or board[.]; provided that the commission or board shall not be responsible for enforcing any conditions arising from a contract or other agreement of the licensee relating to the licensed premises.

     The exercise by the commission or board of the power, authority, and discretion vested in it pursuant to this chapter shall be final and shall not be reviewable by or appealable to any court or tribunal, except as otherwise provided in this chapter or chapter 91."

     SECTION 5.  Section 281-17.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  Any such liquor license fees or any moneys collected or received by any liquor commission under this chapter may only be used for costs and expenses directly relating to operational and administrative costs actually incurred by the liquor commission collecting or receiving such liquor license fees or moneys.  Such fees or moneys shall not be used for any costs or expenses other than those directly relating to its operation and administration[.], except as otherwise provided by law."

     SECTION 6.  Section 281-21, Hawaii Revised Statutes, is amended to read as follows:

     "§281-21  Service of subpoenas by investigators, police officers, or other law enforcement officers; witnesses' fees.  Any investigator, police officer, or other law enforcement officer may serve any subpoena issued by the liquor commission [or], liquor control adjudication board[.], or liquor administrator.

     Every witness attending or testifying at any hearing of the commission or board in response to a subpoena issued by it or the liquor administrator shall be paid as provided for in section 621-7.  If a witness is subpoenaed by direction of the commission or board, the witness' fees shall be paid out of any funds which may be set aside for the expenses of the commission or board and, if the witness is subpoenaed on behalf of any interested party, the witness' fees shall be paid by that party."

     SECTION 7.  Section 281-31, Hawaii Revised Statutes, is amended to read as follows:

     "§281-31  Licenses, classes.  (a)  Licenses may be granted by the liquor commission as provided in this section.

     (b)  Class 1.  Manufacturers' license.  A license for the manufacture of liquor shall authorize the licensee to manufacture the liquor therein specified and to sell it at wholesale in original packages to any person who holds a license to resell it and to sell draught beer or wine manufactured from grapes or other fruits grown in the State in any quantity to any person for private use and consumption.  Under this license, no liquor shall be consumed on the premises except as authorized by the commission.  Of this class, there shall be the following kinds:

     (1)  Beer;

     (2)  Wine;

     (3)  Alcohol; and

     (4)  Other specified liquor.

     It shall be unlawful for any holder of a manufacturer's license to have any interest whatsoever in the license or licensed premises of any other licensee.  This subsection shall not prevent the holder of a [beer class] manufacturer's license under this chapter or under the law of another jurisdiction from maintaining any interest in the license or licensed premises of a [beer and wine class] wholesale dealer licensee under this chapter [whose wholesaling is limited to beer, other than direct ownership of a beer and wine class wholesale dealer's license, or direct ownership of a partnership share, one or more shares of stock, or similar proprietary stake in the holder of a beer and wine class wholesale dealer's license].

     (c)  Class 2.  Restaurant license.

     (1)  A license under this class shall authorize the licensee to sell liquors specified in this subsection for consumption on the premises; provided that a restaurant licensee, with commission approval, may provide off-premises catering of food and liquor; provided further that the catering activity shall be directly related to the licensee's operation as a restaurant.  A licensee under this class shall be issued a license according to the category of establishment the licensee owns or operates.  The categories of establishment shall be as follows:

         (A)  A standard bar; or

         (B)  Premises in which live entertainment or recorded music is provided.  Facilities for dancing by the patrons may be permitted as provided by commission rules.

     (2)  If a licensee under class 2 desires to change the category of establishment the licensee owns or operates, the licensee shall apply for a new license applicable to the category of the licensee's establishment.

     (3)  [For each category of class 2 licenses,] Of this class, there shall be the following kinds:

         (A)  General (includes all liquors except alcohol);

         (B)  Beer and wine; and

         (C)  Beer.

[Any] Notwithstanding section 281-57, the commission may approve at one public hearing and without notice the change to a class 2 restaurant license of a licensee holding a [different class of] class 5 dispenser license [on June 19, 1990, and who would otherwise come within this class of license shall not be required to apply for a new license.], who meets the requirements of a class 2 license.

     (d)  Class 3.  Wholesale dealers' license.  A license for the sale of liquors at wholesale shall authorize the licensee to import and sell only to licensees or to others who are by law authorized to resell but are not by law required to hold a license, the liquors therein specified [in quantities not less than five gallons at one time if sold from or in bulk containers or not less than one gallon if bottled goods]; provided that samples of liquor may be sold back to the manufacturer.  [The license may authorize the licensee to sell draught beer in quantities not less than five gallons at one time to any person for private use and consumption if the licensee files an affidavit with the commission that there is not a class 4 retail dealers licensee available to sell the wholesalers brand of draught beer.]  Under the license, no liquor shall be consumed on the premises except as authorized by the commission.  Of this class, there shall be the following kinds:

     (1)  General (includes all liquors except alcohol);

     (2)  Beer and wine; and

     (3)  Alcohol.

If any wholesale dealer solicits or takes any orders in any county other than that where the dealer's place of business is located, the orders may be filled only by shipment direct from the county in which the wholesale dealer has the dealer's license.  Nothing in this subsection shall prevent a wholesaler from selling liquors to post exchanges, [ships] ships' service stores, army or navy officers' clubs, or similar organizations located on army or navy reservations, or to any vessel other than vessels performing a regular water transportation service between any two or more ports in the State, or to aviation companies who operate an aerial transportation enterprise as a common carrier, under chapter 269, engaged in regular flight passenger services between any two or more airports in the State for use on aircraft, or aviation companies engaged in transpacific flight operations for use on aircraft outside the jurisdiction of the State.

     (e)  Class 4.  Retail dealers' license.  A license to sell liquors at retail or to class 10 licenses shall authorize the licensee to sell the liquors therein specified in their original packages.  Under the license, no liquor shall be consumed on the premises except as authorized by the commission.  Of this class, there shall be the following kinds:

     (1)  General (includes all liquors except alcohol);

     (2)  Beer and wine; and

     (3)  Alcohol.

     (f)  Class 5.  Dispensers' license.

     (1)  A license under this class shall authorize the licensee to sell liquors specified in this subsection for consumption on the premises.  A licensee under this class shall be issued a license according to the category of establishment the licensee owns or operates.  The categories of establishments shall be as follows:

         (A)  A standard bar;

         (B)  Premises in which a person performs or entertains unclothed or in attire restricted to use by entertainers pursuant to commission rules;

         (C)  Premises in which live entertainment or recorded music is provided; provided that facilities for dancing by the patrons may be permitted as provided by commission rules; or

         (D)  Premises in which employees or entertainers are compensated to sit with patrons, regardless of whether the employees or entertainers are consuming nonalcoholic beverages while in the company of the patrons pursuant to commission rules.

     (2)  If a licensee under class 5 desires to change the category of establishment the licensee owns or operates, the licensee shall apply for a new license applicable to the category of the licensee's establishment.

     (3)  [For each category of class 5 licenses,] Of this class, there shall be the following kinds:

         (A)  General (includes all liquors except alcohol);

         (B)  Beer and wine; and

         (C)  Beer.

     (g)  Class 6.  Club license.  A club license shall be general only (but excluding alcohol) and shall authorize the licensee to sell liquors to members of the club and to guests of the club enjoying the privileges of membership, for consumption only on the premises kept and operated by the club; provided that the license shall also authorize any club member to keep in the member's private locker on the premises a reasonable quantity of liquor, if owned by the member, for the member's own personal use and not to be sold and that may be consumed only on the premises.  A club licensee shall be authorized to host charitable functions that are open to the general public only pursuant to commission rules.

The categories of establishment shall be as follows:

         (A)  A standard bar; or

         (B)  Premises in which live entertainment or recorded music is provided.  Facilities for dancing by the patrons may be permitted as provided by commission rules.

     [(h)  Class 7.  Vessel license.  A general license may be granted to the owner of any vessel performing a regular water transportation passenger service between any two or more ports in the State for the sale of liquor (other than alcohol) on board the vessel while in the waters of the State; provided the sales are made only while the vessel is en route and only for consumption by passengers on board.  If the vessel has a home port in the State, the license shall be issuable in the county in which the home port is situated; provided that if the licensee's home port is not situated in this State, the license shall be issuable in the city and county of Honolulu.  If, on any vessel for which no license has been obtained under this chapter, any liquor is sold or served within three miles of the shore of any island of the State, it shall constitute a violation of this chapter.

     (i)] (h)  Class 8.  Transient vessel license.  A general license may be granted to the owner of any vessel [that does not fall within class 7] for the sale of liquor (other than alcohol) on board the vessel while en route in any port of the State.  Sales shall be made only for consumption by passengers and their guests on board the vessel.  The license shall be issuable in each county where the sales are to be made; provided that the application for the license may be made by any agent representing the owner.

     [(j)] (i)  Class 9.  Tour or cruise vessel license.  A general license may be granted to the owner of any tour or cruise vessel for the sale of liquor (other than alcohol) on board the vessel while in the waters of the State; provided that sales be made only for consumption by passengers on board while the vessel is in operation outside the port or dock of any island of the State, unless otherwise approved by the county where the license has been issued.  [If the vessel has a home port in the State, the] The license shall be issuable in the county wherein the home port is situated[; provided that if the licensee's home port is not situated in this State, the license shall be issuable in the city and county of Honolulu].  If, on any vessel for which no license has been obtained under this chapter, any liquor is sold or served within three miles of the shore of any island of the State, it shall constitute a violation of this chapter.

     The categories of establishment shall be as follows:

         (A)  A standard bar; or

         (B)  Premises in which live entertainment or recorded music is provided.  Facilities for dancing by the patrons may be permitted as provided by commission rules.

     [(k)] (j)  Class 10.  Special license.  A special license may be granted for the sale of liquor for a period not to exceed three days [on any occasion and under any conditions as may be approved by the commission.] and pursuant to commission rule may be approved by the administrator for fundraising events by nonprofit organizations, political candidates, and political parties; provided that any registered educational or charitable nonprofit organization may sell liquors in their original packages for off-premises consumption.  Of this class, there shall be the following kinds:

     (1)  General (includes all liquors except alcohol);

     (2)  Beer and wine; and

     (3)  Beer.

Under this license, the liquors therein specified shall be consumed on the premises.

     [(l)] (k)  Class 11.  Cabaret license.  A cabaret license shall be general only (but excluding alcohol) and shall authorize the sale of liquors for consumption on the premises.  This license shall be issued only for premises where food is served, facilities for dancing by the patrons are provided, including a dance floor, and live or amplified recorded music or professional entertainment, except professional entertainment by a person who performs or entertains unclothed, is provided for the patrons; provided that professional entertainment by persons who perform or entertain unclothed shall be authorized by:

     (1)  A cabaret license for premises where professional entertainment by persons who perform or entertain unclothed was presented on a regular and consistent basis immediately prior to June 15, 1990; or

     (2)  A cabaret license that, pursuant to rules adopted by the liquor commission, permits professional entertainment by persons who perform or entertain unclothed.

     A cabaret license under paragraph (1) or (2) authorizing professional entertainment by persons who perform or entertain unclothed shall be transferable through June 30, 2000.  A cabaret license under paragraph (1) or (2) authorizing professional entertainment by persons who perform or entertain unclothed shall not be transferable after June 30, 2000, except when the transferee obtains approval from the liquor commission, and pursuant to rules adopted by the commission.  Notwithstanding any rule of the liquor commission to the contrary, cabarets in resort areas may be opened for the transaction of business until 4 a.m. throughout the entire week.

     [(m)] (l)  Class 12.  Hotel license.  A license to sell liquor in a hotel shall authorize the licensee to provide entertainment and dancing on the hotel premises and to sell all liquors, except alcohol, for consumption on the premises; provided that a hotel licensee, with commission approval, may provide off-premises catering[,] of food and liquor, if the catering activity is directly related to the licensee's [operation as a hotel.] food service.

     Procedures such as room service, self-service (no-host), minibars or similar service in guest rooms, and service at [private] parties in areas that are the property of and contiguous to the hotel, are permitted with commission approval.

     Any licensee who would otherwise fall within the hotel license class but holds a different class of license may be required to apply for a hotel license.

     If the licensee applies for a change of classification prior to July 30, 1992, the licensee shall not be subject to the requirements of sections 281-52, 281-54, and 281-57 through 281‑59.

     Any licensee holding a class 12 license on [[]May 1, 2007,[]] and who would otherwise come within this class of license may apply to the liquor commission in which the licensee is seeking a change in liquor license for a change to a class 15 license; provided that the licensee shall not be subject to the requirements of section 281-54 and sections 281-57 to 281-60.

     If a licensee holding a class 12 license on [[]May 1, 2007,[]] applies for a change to a class 15 license, the respective liquor commission shall hold a public hearing upon notice, and upon the day of hearing, or any adjournment thereof, the liquor commission shall consider the application, accept all written or oral testimony for or against the application, and render its decision granting or refusing the application.  If the application is denied, the class 12 license shall continue in effect in accordance with law.

     [(n)] (m)  Class 13.  Caterer license.  A general license may be granted to any [licensee] applicant who serves food as part of their operation for the sale of liquor (other than alcohol) while performing food catering functions[.] off the premises.

     No catering service for the sale of liquor shall be performed off the licensee's premises, unless prior written notice of the service has been delivered to the office of the liquor commission of the county concerned.  The notice shall state the date, time, and location of the proposed event and shall include a written statement signed by the owner or representative of the property that the function will be subject to the liquor laws and to inspection by investigators.

     [(o)] (n)  Class 14.  Brewpub license.  A brewpub licensee:

     (1)  Shall manufacture not more than ten thousand barrels of malt beverages on the licensee's premises during the license year;

     (2)  May sell malt beverages manufactured on the licensee's premises for consumption on the premises;

     (3)  May sell malt beverages manufactured by the licensee in brewery-sealed packages to class 3[,] wholesale dealer licensees pursuant to conditions imposed by county planning and public works departments;

     (4)  May sell intoxicating liquor, purchased from a class 1[,] manufacturer licensee, or a class 3[,] wholesale dealer's licensee, to consumers for consumption on the licensee's premises[; provided that the premises is owned and operated by the licensee].  The categories of establishments shall be as follows:

         (A)  A standard bar; or

         (B)  Premises in which live entertainment or recorded music is provided.  Facilities for dancing by the patrons may be permitted as provided by commission rules;

     (5)  May sell malt beverages manufactured on the licensee's premises to consumers in brewery-sealed kegs and growlers for off-premises consumption; provided that for purposes of this paragraph, "growler" means a glass container, not to exceed one half-gallon, which [may] shall be securely sealed;

     (6)  May sell malt beverages manufactured on the licensee's premises to consumers, in recyclable containers that may be provided by the licensee or by the consumer, not to exceed one gallon per container, which are securely sealed on the licensee's premises, for off-premises consumption;

     (7)  Shall comply with all regulations pertaining to class 4 retail licensees when engaging in the retail sale of malt beverages; and

     (8)  May sell malt beverages manufactured on the licensee's premises in brewery-sealed containers directly to class 2 restaurant licensees, class 3 wholesale dealer licensees, class 4 retail dealer licensees, class 5 dispensers' licensees, class 6 club licensees, class [7, 8, and 9 vessel licensees,] 8 transient vessel licensees, class 9 tour or cruise vessel licensees, class 10 special licensees, class 11 cabaret licensees, class 12 hotel licensees, class 13 caterer licensees, and class 15 condominium hotel license, pursuant to conditions imposed by county [planning and public works departments and] regulations governing class 1 manufacturer's licensees and class 3 wholesale dealers licensees[; and

     (9)  May conduct the activities described in paragraphs (1) through (8) at one location other than the licensee's premises; provided that the manufacturing takes place in Hawaii; and provided further the other location is properly licensed by the same ownership].

     [(p)] (o)  Class 15.  Condominium hotel license.  A license to sell liquor in a condominium hotel shall authorize the licensee to provide entertainment and dancing on the condominium hotel premises and to sell all liquors, except alcohol, for consumption on the premises; provided that a condominium hotel licensee, with commission approval, may provide off-premises catering; provided further that the catering activity is directly related to the licensee's operation as a condominium hotel.

     Procedures such as room service, self-service (no-host), minibars or similar service in apartments, and service at private parties in areas that are the property of and contiguous to the condominium hotel, are permitted with commission approval.

     A condominium hotel licensee shall not sell liquor in the manner authorized by a class 4 retail dealer's license.

Any licensee who would otherwise fall within the condominium hotel license class but holds a different class of license may be required to apply for a condominium hotel license.

     [(q)] (p)  It shall be unlawful for any retail licensee, except a class 10 licensee, to purchase, acquire, or sell liquor from any person other than a wholesaler licensed pursuant to this chapter, except as otherwise provided in this section.

     [(r)] (q)  Any provision to the contrary notwithstanding, at the discretion of the county liquor commission, permission may be granted to a bona fide hotel, restaurant, or club licensed under class 2, class 6, class 11, class 12, class 14, or class 15 to allow a patron to remove from the licensed premises any portion of wine that was purchased for consumption with a meal; provided that it is recorked or resealed in its original container.  This subsection applies only to a valid holder of a class 2, class 6, class 11, class 12, class 14, or class 15 license engaged in meal service.

     [(s)] (r)  Sections 281-57 to 281-60 shall not apply to classes [7] 8 through 10 and 13."

     SECTION 8.  Section 281-32, Hawaii Revised Statutes, is amended to read as follows:

     "§281-32  Licenses, temporary.  A temporary license of any class and kind specified in section 281-31 may be granted under the following conditions[.]:

     (1)  The premises shall have been operated under a license of the same class, [and] kind, and category issued by the liquor commission at least one year immediately prior to the date of filing of the application for a temporary license[.], except as otherwise approved by the commission.

     (2)  The license of the same class, [and] kind, and category then in effect for the premises shall be surrendered in such manner and at such time as the commission shall direct.

     (3)  The applicant for a temporary license shall have filed with the commission an application for a license of the same class, [and] kind, and category currently or previously [then] in effect for the premises.

     (4)  The application for a temporary license shall be accompanied by a license fee in such amount as may be prescribed by the commission.  If the application is denied or withdrawn, the fee which accompanied the application shall [be refunded in full.] become a realization of the county.

     (5)  A temporary license shall be for a period of not in excess of one hundred and twenty days.  The license may be renewed at the discretion of the commission for not more than one additional [sixty-day] one hundred twenty-day period upon payment of such additional fee as may be prescribed by the commission and upon compliance with all conditions required in this section and section 281-31.  When a temporary license has expired and no permanent license has been issued, the sale and service of liquor shall cease until the permanent license is issued; provided that, when applicable, the license shall be properly renewed.

     (6)  A temporary license shall authorize the licensee to purchase liquor only by payment in currency, check, or certified check for the liquor before or at the time of delivery of the liquor to the licensee[.], except as otherwise provided by commission rule.

     (7)  Sections 281-52 and 281-54 and sections 281-56 to 281-61 shall not apply to any application for a temporary license."

     SECTION 9.  Section 281-35, Hawaii Revised Statutes, is amended to read as follows:

     "§281-35  Special conditions; club licenses.  No liquor shall be sold under a club license to any person not a member of the club nor a guest thereof enjoying the [privilege] privileges of membership, but a member or a guest enjoying the privileges of membership may purchase liquor for consumption on the premises by the person's own guests.

     The liquor commission may by [regulations] rule require the keeping and posting of lists of the members of a club, and the keeping and production of records as to membership and the registration of guests enjoying the privileges of membership.

     No liquor shall be sold or kept for sale at any club except by the club itself pursuant to its license.  If any liquor is sold or kept on the club premises for sale or barter by any member, employee, or person other than the club itself, the club shall be deemed to be selling without a license [whether it holds its own license or not]."

     SECTION 10.  Section 281-39, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  Except for a condominium hotel operator under a class 15 license, no change of premises under any issued license shall be allowed unless the doing of business on the new premises is authorized in the same manner as provided by this chapter for approval of any original premises; provided that the holder of any manufacturer's license or a wholesale dealer's license issued by the commission of any county may, through authorized solicitors or representatives, solicit and take orders for direct shipment [for] of liquor in permitted quantities in any other county."

     SECTION 11.  Section 281-41, Hawaii Revised Statutes, is amended to read as follows:

     "§281-41  Transfer of licenses; notice of change in officers, directors, and stockholders of corporate licenses, partners of a partnership license, and members of a limited liability company license; penalty.  (a)  No license issued under this chapter to an original applicant or to any transferee shall be transferable or be transferred within one year of the issuance or transfer, except for good cause shown to the satisfaction of the liquor commission.  Transfers shall be for the same class, kind, and category of license then in effect.  No license issued under this chapter shall be transferable or be transferred except upon written application to the commission by the proposed transferee, and after prior inspection of the premises, reference to, and report by an inspector, and a public hearing held by the commission not less than fourteen days after one publication of notice thereof, but without sending notice of the hearing by mail to persons being the owners or lessees of real estate situated within the vicinity of the premises and without the right to [the owners or lessees to protest the transfer of a license.] automatic refusal based on majority protests by owners or lessees or registered voters pursuant to sections 281-39.5 and 281-59.  Exceptions are class 5 and 11 licensees who must comply with the notice requirements as set forth in [section] sections 281-57[.] to 281-60.

     [(b)  No class 5 or 12 license issued to a standard bar, as defined in section 281-1, shall be transferable to other than a standard bar and that such license shall be subject to revocation if the licensed premises is not retained as a standard bar except upon written application to the commission by the licensee or the proposed transferee, subject to sections 281-51 to 281-60.]

     [(c)] (b)  A county may increase the requirements for transfers of class 5, category [[](1)[]] (B) and (D), and class 11 licenses by ordinance designating one or more areas within the county as special liquor districts and specifying the requirements applicable to transfers of any of these licenses within each district.

     [(d)] (c)  For the purpose of this section, "special liquor district" means an area designated by a county for restoration, reservation, historic preservation, redevelopment, rejuvenation, or residential protection, in which development is guided to protect or enhance the physical and visual aspects of the area for the benefit of the community as a whole.

     [(e)] (d)  Where a license is held by a partnership, the commission may, notwithstanding this section, approve the transfer of the [license] partnership interest upon the death or withdrawal of a member of the partnership to any remaining partner or partners or to a new partner or partners without publication of notice [and without] at a public hearing.  Prior to the admission or withdrawal of a partner or partners, the licensee shall so notify the commission in writing, stating the name, age, and place of residence of the partner or partners who have withdrawn or been admitted, if that be the case.  If the commission finds a partner to be an unfit or improper person to hold a license in the partner's own right pursuant to section 281-45, it may deny the admission of the partner or partners.

     [(f)] (e)  Where a license is held by a limited partnership, limited liability partnership, or a limited liability company, the admission or withdrawal of a partner, limited partner, partner of a limited liability partnership, or a member of the limited liability company shall not be deemed a transfer of the license held by the partnership or limited liability company, but the licensee shall, prior to such admission or withdrawal, so notify the commission in writing, stating the name of the partner, partners, member, or members who have withdrawn, if such be the case, and the name, age, and place of residence of the partner, partners, member, or members who have been admitted, if that be the case.  If the commission finds a [limited] partner or a member to be an unfit or improper person to hold a license in the [limited] partner's or member's own right pursuant to section 281-45, it may [revoke the license or suspend the license of the partnership or the limited liability company until the unfit or improper partner or member is removed or replaced.] deny the admission of the general or limited partner of a limited partnership, limited liability partnership, or member of a limited liability company.

     [(g)] (f)  Except as otherwise provided in this section, the same procedure shall be followed in regard to the transfer of a license as is prescribed by this chapter for obtaining a license.  Sections 281-51 to 281-60, except where inconsistent with any provision hereof, are hereby made applicable to such transfers.  The word "applicant", as used in such sections, shall include each such proposed transferee, and the words, "application for a license or for the renewal of a license", as used in such sections, shall include an application for the transfer of a license.

     [(h)] (g)  Upon the hearing, the commission shall consider the application and any objections to the granting thereof and hear the parties in interest.  It shall inquire into the propriety of each transfer and determine whether the proposed transferee is a fit person to hold the license.  It may approve a transfer or refuse to approve a transfer and the refusal by the commission to approve a transfer shall be final and conclusive, unless an appeal is taken as provided in chapter 91.

     [(i)] (h)  If any licensee without such approval transfers to any other person the licensee's business for which the licensee's license was issued, either openly or under any undisclosed arrangement, whereby any person, other than the licensee, comes into possession or control of the business or takes in any partner or associate, the commission may in its discretion suspend or cancel the license.

     [(j)] (i)  If the licensee is a corporation, a change in ownership of any outstanding capital stock shall not be deemed a transfer of a license; provided that in the case of a change in ownership of twenty-five per cent or more of the stock or in the case of change in ownership of any number of shares of the stock that results in the transferee thereof becoming the owner of twenty-five per cent or more of the outstanding capital stock, the corporate licensee shall, prior to the date of the transfer, apply for and secure the approval of the transfer from the commission in writing.  If the commission finds that the proposed transferee is an unfit or improper person to hold a license in the proposed transferee's own right pursuant to section 281-45, it shall not approve the proposed transfer.  If any transfer is made without the prior approval of the commission, the commission may in its discretion revoke or suspend the license until it determines that the transferee is a fit and proper person, and if the commission finds that the transferee is not a fit and proper person, until a retransfer or new transfer of the capital stock is made to a fit and proper person pursuant to section 281-45.  In addition, the corporate licensee shall, within thirty days from the date of election of any officer or director, notify the commission in writing of the name, age, and place of residence of the officer or director.  If the commission finds the transferee, officer, or director an unfit or improper person to hold a license in the transferee's, officer's, or director's own right pursuant to section 281-45, it may in its discretion revoke the license or suspend the license until a retransfer or new transfer of the capital stock is effected to a fit or proper person pursuant to section 281-45 or until the unfit or improper transferee, officer, or director is removed or replaced by a fit and proper person pursuant to section 281-45.

     [(k)] (j)  If a licensee closes out the business for which the license is held, during the term for which the license was issued, the licensee shall, within five days from the date of closing the same, give the commission written notice thereof and surrender the licensee's license for cancellation.

     (k)  The conversion of an entity into any other form of entity and the merger of any entity with any other entity shall not be deemed a transfer of the license, provided that the licensee, prior to the date of the conversion or merger, shall apply for and secure the approval of the commission without any requirement for publication of notice.  The foregoing shall not preclude compliance with subsection (d) upon a change in any of the partners or members, or with subsection (i) upon a change in any of the shareholders, officers, or directors of any entity occurring concurrently with a conversion or merger."

     SECTION 12.  Section 281-45, Hawaii Revised Statutes, is amended to read as follows:

     "§281-45  No license issued, when.  No license shall be issued under this chapter:

     (1)  To any minor or to any person who has been convicted of a felony and not pardoned (except that the commission may grant a license under this chapter to a corporation that has been convicted of a felony where the commission finds that the organization's officers and shareholders of twenty-five per cent or more of outstanding stock are fit and proper persons to have a license), or to any other person not deemed by the commission to be a fit and proper person to have a license;

     (2)  To a corporation the officers and directors of which, or any of them, would be disqualified under paragraph (1) [of this section] from obtaining the license individually, or a stockholder of which, owning or controlling twenty-five per cent or more of the outstanding capital stock or a stockholder of which, owning or controlling twenty-five per cent or more of the outstanding capital stock, or to a general partnership, limited partnership, limited liability partnership, or limited liability company whose partner or member holding twenty-five per cent or more interest of which, or any of them would be disqualified under that paragraph from obtaining the license individually;

     (3)  Unless the applicant for a license or a renewal of a license, or in the case of a transfer of a license, both the transferor and the transferee, present to the issuing agency a signed certificate from the director of taxation and from the Internal Revenue Service showing that the applicant or the transferor and transferee do not owe the state or federal governments any delinquent taxes, penalties, or interest; or

     (4)  To any applicant who has had any liquor license revoked less than two years previous to the date of the application for any like or other license under this chapter."

     SECTION 13.  Section 281-52, Hawaii Revised Statutes, is amended to read as follows:

     "§281-52  Public hearing.  No license shall be granted except after a public hearing by the liquor commission upon notice as prescribed in this chapter; provided that [section] sections 281-57 to 281-60 shall not apply to the holder of a restaurant general license, a wholesale general license, [or] a retail general license, or a dispenser's general license, who applies for a different kind of license within the class of the holder's existing license, on the same premises, or to the holder of a cabaret license who applies for a dispenser license of any kind, on the same premises, or to the holder of a dispenser's beer and wine license who applies for dispenser's beer license, on the same premises, or to a licensee whose licensed premises have been demolished and replaced by another building on the same premises and who applies for the same or lesser kind of the same class of liquor license previously held by the licensee on said premises."

     SECTION 14.  Section 281-53, Hawaii Revised Statutes, is amended to read as follows:

     "§281-53  Application; penalty for false statements.  Every application for a license or for the renewal of a license or for the transfer of a license shall be in writing, signed and, except for the renewal of a license, verified by the oath of the applicant, or in the case of a corporation or unincorporated association by the proper officer or officers thereof, or if a partnership by a general partner thereof, or if a limited liability partnership by a partner thereof, or if a limited liability company by a member thereof, made before any official authorized by law to administer oaths, and shall be addressed to the liquor commission, and set forth:

     (1)  The full name, age, and place of residence of the applicant; if a copartnership, the names, ages, and respective places of residence of all the partners; if a limited liability company, its full name and the names of all its members; if a corporation or joint-stock company, its full name and the names of its officers and directors, and the names of all stockholders owning twenty-five per cent or more of the outstanding capital stock; and if any other association of individuals, the names, ages, and respective places of residence of its officers and the number of its members;

     (2)  A particular description of the place or premises where the proposed license is to be exercised, so that the exact location and extent thereof may be clearly and definitely determined therefrom;

     (3)  The class and kind of license applied for; and

     (4)  Any other matter or information pertinent to the subject matter which may be required by the rules [and regulations] of the commission.

     If any false statement is knowingly made in any application which is verified by oath, the applicant, and in the case of the application being made by a corporation, limited liability company, association, or club, the persons signing the application, shall be guilty of perjury, and shall be subject to the penalties prescribed by law for such offense.  If any false statement is knowingly made in any application which is not verified by oath, the person or persons signing the application shall be guilty of a misdemeanor and upon conviction thereof shall be punished as in section 281-102 provided."

     SECTION 15.  Section 281-56, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  On every application referred to the investigator under section 281-55, the investigator shall report in writing to the liquor commission and, if the application is for a license of any class other than class 7, class 8, [or] class 9, or class 10, such report shall [show:] include:

     (1)  A description of the premises intended to become the licensed premises, and the equipment and surrounding conditions including the relationship to surrounding residences which may share a common boundary or a common structure with the premises proposed for licensing;

     (2)  If the application is made by a person who has held a prior license for the same or any other premises within two years past, a statement as to the manner in which the premises have been operated and the business conducted under the previous license;

     (3)  The locality of any church, chapel, or school, if any, within a distance of five hundred feet from the nearest point of the premises for which the license is asked to the nearest point of the church, chapel, or school grounds;

     (4)  The number, position, and distance from the premises, in respect of which a license is applied for, of any other licensed premises of the same class in the neighborhood;

     (5)  The number of licenses of the same class or kind already issued and being lawfully exercised within the county;

     (6)  Whether or not in the opinion of the investigator the applicant is a fit and proper person to have a license;

     (7)  Whether or not the applicant is for any reason disqualified by this chapter from obtaining or exercising a license; and whether or not the applicant has complied with all the requirements of this chapter relative to the making and filing of the applicant's application;

     (8)  For the next application for a license that was previously denied, refused, or withdrawn, evidence, to be provided by the applicant, of a substantial change in the circumstances that caused the previous denial, refusal, or withdrawal; and

     (9)  Any and all other matters and things, [which] that in the judgment of the investigator pertain to or affect the matter of the application, or the issuance or the exercise of the license applied for; provided that when the license application is for premises within a county [encompassing] with a population of [500,000] five hundred thousand residents or more, the report shall specify the possible adverse effects the premises, after licensing, may have on the surrounding community."

     SECTION 16.  Section 281-57, Hawaii Revised Statutes, is amended by amending subsections (c) and (d) to read as follows:

     "(c)  Immediately upon the commission's fixing a day for the public hearing of the application, the applicant shall mail a notice setting forth the time and place of the hearing on the application to each of the following:

     (1)  Not less than two-thirds of the owners and lessees of record of real estate and owners of record of shares in a cooperative apartment or to those individuals on the list of owners as provided by the managing agent or governing body of the shareholders association situated within a distance of five hundred feet from the nearest point of the premises for which the license is asked to the nearest point of such real estate or cooperative apartment; provided that in meeting this requirement, the applicant shall mail a notice to not less than three-fourths of the owners and lessees of record of real estate and owners of record of shares in a cooperative apartment situated within a distance of one hundred feet from the nearest point of the premises for which the license is asked.  Notice by mail may be addressed to the last known address of the person concerned or to the address as shown in the last tax return filed by the person or the person's agent or representative;

     (2)  In counties with a population of [two hundred-fifty thousand] five hundred thousand or more, not less than two-thirds of the registered voters residing within, and small businesses situated within, a distance of five hundred feet from the nearest point of the premises for which the license is asked; provided that in meeting this requirement, the applicant shall mail notices to not less than three-fourths of the registered voters residing within, and small businesses situated within, a distance of one hundred feet from the nearest point of the premises for which the license is asked.  This paragraph shall not apply to [any applicant that is a hotel as defined in section 486K-1, a condominium hotel, a restaurant, or a convenience store.] applications for class 2, class 4, class 12, and class 15 licenses.  A notice sent pursuant to this paragraph shall be addressed to the "occupant" of the residential unit or small business; and

     (3)  For each condominium project and cooperative apartment within the five hundred-foot area, one notice of the hearing shall be sent by mail addressed "To the Residents, Care of the Manager", followed by the name and address of the condominium or cooperative apartment involved.

The notices required under this subsection shall be mailed at least forty-five days prior to the date set for the hearing.  No promotional information shall be allowed on, or accompany the notice.  Before the hearing, and within seven business days of having mailed the notices, the applicant shall file with the commission an affidavit that the notices have been mailed in compliance with this subsection.  In addition to the affidavit (which shall be made available within the same [seven-day] seven business day period with proof of having mailed the notices), the applicant shall include both a master list of one hundred per cent of addressees and addresses required by paragraphs (1), (2), and (3), and another mailing list consisting of the portion of addressees and their respective addresses who were mailed the notice purposely needed to meet the requirements of paragraphs (1), (2), and (3).  The affidavit, master list, and mailing list shall be made available within seven business days (of the mailing of the notice by the applicant) by the commission for public review upon request.  For purposes of this section, "master list" means every owner and lessee who would otherwise be required to receive notice of the public hearing according to the requirement of paragraphs (1), (2), and (3), even if they were not actually included in the two-third or three-fourths requirement (as the case may be) of paragraph (1) or (2), and every condominium project and cooperative apartment qualifying in paragraph (3).  [The commission shall cancel the hearing if not receiving the affidavit prior to the hearing or if discovering that the affidavit is false.] When the requirements of this section have not been met, the commission may cancel the hearing or continue the public hearing subject to the provisions of section 281-57 and this section.

     (d)  For purposes of this section, notice to one co-owner and one co-lessee of real estate shall be sufficient notice to all co-owners and all co-lessees of that real estate; and one notice is sufficient to an owner or lessee of multiple parcels; except that one notice shall be sent to each individual unit of a cooperative apartment as provided in this section."

     SECTION 17.  Section 281-58, Hawaii Revised Statutes, is amended to read as follows:

     "§281-58  Protests.  Protests against the granting of a license may be filed by any person.  Protests against the granting of a license upon such application, which qualifies for an automatic refusal pursuant to section 281-39.5 or 281-59, may be so filed by any registered voter for the area within five hundred feet of the nearest point at which the applicant proposes to establish or continue the applicant's business under the license applied for, or by any owner or lessee of record of real estate or by any owner of record of a share in a cooperative apartment situated within a distance of five hundred feet from the nearest point of the premises for which the license is asked to the nearest point of such real estate or cooperative apartment."

     SECTION 18.  Section 281-59, Hawaii Revised Statutes, is amended amending subsections (a) and (b) to read as follows:

     "(a)  Upon the day of hearing, or any adjournment thereof, the liquor commission shall consider the application and any protests and objections to the granting thereof, and hear the parties in interest.  The liquor commission shall accept all written or oral testimony for or against the application whether the application is denied, refused, or withdrawn.  Within fifteen days after the hearing, or within thirty days thereafter if in its discretion the commission extends the fifteen days to thirty days, and gives public notice of same, the commission shall give its decision granting or refusing the application; provided that if a majority of the:

     (1)  Registered voters for the area within five hundred feet of the nearest point of the premises for which the license is asked; or

     (2)  Owners and lessees of record of real estate and owners of record of shares in a cooperative apartment within five hundred feet of the nearest point of the premises for which the license is asked;

have duly filed or caused to be filed their protests against the granting of the license, or if there appears any other disqualification under this chapter, the application shall be refused.  Otherwise, the commission may in its discretion grant or refuse the same.

     For purposes of defining "a majority of the owners and lessees of record of real estate and owners of record of shares in a cooperative apartment", each property counts only once[.]; provided that roadways shall not be included.   A protest submitted by the majority of the co-owners or the majority of the co-lessees of a property shall constitute a protest by all the owners or lessees of record of that property.  [Owners] A protest filed by owners or lessees who own more than one property [may count] shall be counted for each property.

     (b)  The liquor commission shall make available to the applicant and any protester for review before the public hearing, the protest list of those persons who filed a protest or objection to the application; provided that the applicant shall not use the protest list to attempt to influence in any way any protester to withdraw the protest or objection.  All applicants and protesters may submit corrections, additions, and subtractions to the master list and the protest list at the public hearing[.] provided that additions or corrections to the voter registration list shall be certified by the clerk of the county.  The liquor commission shall rule on proposed corrections, additions, and subtractions and give reasons for the ruling."

     SECTION 19.  Section 281-61, Hawaii Revised Statutes, is amended to read as follows:

     "§281-61  Renewals.  (a)  Other than for good cause, the renewal of an existing license shall be granted upon the filing of an application; provided that if:

     (1)  Complaints from the public;

     (2)  Reports from the commission's investigators; or

     (3)  Adjudications of the commission or the liquor control adjudication board,

indicate that noise created by patrons departing from the premises disturbs residents on the street or of the neighborhood in which the premises are located, or that noise from the premises or adjacent related outdoor areas [under the licensee's control] such as parking lots or lanais exceed standards contained in state or county noise codes [and] or intrudes into nearby residential units, the commission may deny the renewal application or withhold the issuance of a renewed license until corrective measures meeting the commission's approval are taken.

     (b)  The commission[,] or board, pursuant to section 281-17, at the time of renewal or at any time, may revoke, suspend, or place conditions or restrictions on any license issued under this chapter for the purpose of preventing activities within the licensed premises or adjacent areas [under the licensee's control] that are potentially injurious to the health, safety, and welfare of the public and neighborhood including but not limited to criminal activity, including assault, drug dealing, drug use, or prostitution, upon [petition of the administrator of the appropriate county agency,] proper notice to the licensee, and a hearing before the commission pursuant to chapter 91."

     SECTION 20.  Section 281-62, Hawaii Revised Statutes, is amended to read as follows:

     §281-62  Reduction or increase in area of licensed premises.  The liquor commission may, in its discretion, permit the reduction or the increase in the area of the licensed premises of any licensee[.] without publication of notice at a public hearing, provided that, where an increase in premises may significantly impact the public, the commission may require hearings pursuant to sections 281-39.5 and 281-57 to 281-60.  Whenever any reduction or increase is permitted, the same shall be endorsed in some appropriate manner upon the license."

     SECTION 21.  Section 281-78, Hawaii Revised Statutes, is amended to read as follows:

     "§281-78  Prohibitions.  (a)  No person shall, except as permitted in section 291-3.4, consume any liquor on any public highway or any public sidewalk.

     (b)  At no time under any circumstances shall any licensee or its employee:

     (1)  Sell, serve, or furnish any liquor to, or allow the consumption of any liquor by:

         (A)  Any minor;

         (B)  Any person at the time under the influence of liquor;

         (C)  Any person known to the licensee to be addicted to the excessive use of intoxicating liquor; or

         (D)  Any person for consumption in any vehicle that is licensed to travel on public highways;

          provided that the consumption or sale of liquor to a minor shall not be deemed to be a violation of this subsection if, in making the sale or allowing the consumption of any liquor by a minor, the licensee was misled by the appearance of the minor and the attending circumstances into honestly believing that the minor was of legal age and the licensee acted in good faith; and provided further that it shall be incumbent upon the licensee to prove that the licensee so acted in good faith;

     (2)  Permit any liquor to be consumed on the premises of the licensee or on any premises connected therewith, whether there purchased or not, except as permitted by the terms of its license;

     (3)  Permit any liquor to be sold or served by any person eighteen to twenty years of age except in licensed establishments where selling or serving the intoxicating liquor is part of the minor's employment, and where there is proper supervision of these minor employees to ensure that the minors shall not consume the intoxicating liquor;

     (4)  Permit any liquor to be sold or served by any person below the age of eighteen years upon any licensed premises, except in individually specified licensed establishments found to be otherwise suitable by the liquor commission in which an approved program of job training and employment for dining room waiters and waitresses is being conducted in cooperation with the University of Hawaii, the [state] community college system, or a federally sponsored personnel development and training program, under arrangements that ensure proper control and supervision of employees;

     (5)  Knowingly permit any person under the influence of liquor or disorderly person to be or remain in or on the licensed premises;

     (6)  Fail immediately to prevent or suppress any violent, quarrelsome, disorderly, lewd, immoral, or unlawful conduct of any person on the premises;

     (7)  Sell any draught beer unless upon the faucet, spigot, or outlet wherefrom the beer is drawn there is attached a clear and legible notice, placard, or marker which in the English language indicates and declares the name or brand adopted by the manufacturer of the draught beer, so situated as to be clearly legible for a distance of at least ten feet from the spigot, faucet, or outlet, to a purchaser with normal vision; or

     (8)  Receive from a person, as payment or as a consideration for liquor, any personal or household goods, including clothing and food, or any implements of trade.  Any person violating this paragraph shall be guilty of a misdemeanor and upon conviction shall be punished as provided in section 281-102.

(c)  It shall be unlawful for any person to sell intoxicating liquor in any form other than for consumption as a  beverage."

     SECTION 22.  Section 281-91, Hawaii Revised Statutes, is amended to read as follows:

     "§281-91  Revocation or suspension of license; hearing.  The liquor commission or liquor control adjudication board may revoke any license at any time issued, or suspend the right of the licensee to use the licensee's license, or assess and collect a [penalty,] fine, or reprimand the licensee, either for the violation of any condition of the license or of any provisions of this chapter or of any rule or regulation applicable thereto, or upon the conviction in a court of law of the licensee of any violation of this chapter or of any other law relative to the licensee's license or the proper exercise thereof, or of any violation of law in any other respect on account whereof the commission or board may deem the licensee to be an unfit or improper person to hold a license, or for any other cause deemed sufficient by the commission or board.

     In every case where it is proposed to revoke or suspend the exercise of any license or assess and collect a [penalty] fine for any cause other than a conviction at law of the licensee as above specified, the licensee shall be entitled to notice and hearing in conformity with chapter 91, the notice to be given at least five days before the hearing, except that any special license shall be subject to summary revocation for any violation of or evidence of intent to violate the proper exercise thereof, without hearing before the commission or board.

     At the hearing, before final action is taken by the commission or board, the licensee shall be entitled to be heard in person or through counsel and shall be given a full and fair opportunity to present any facts showing that the alleged cause or causes for the proposed action do not exist, or any reasons why no [penalty] fine should be imposed.  The testimony taken at the hearing shall be under oath and recorded stenographically, or by machine, but the parties shall not be bound by the strict rules of evidence; certified copies of any transcript and of any other record made of or at the hearing shall be furnished to the licensee upon the licensee's request and at the licensee's expense.

     Any order of revocation, suspension, fine, or reprimand imposed by the commission or board upon the licensee shall be in addition to any penalty that might be imposed upon the licensee upon the licensee's conviction [at] in a court of law for any violation of this chapter.  The liquor commission or liquor control adjudication board may subject the licensee to both the fine assessed and suspension of the license.  No licensee shall be subject to both the [penalty] fine assessed and collected by the commission or board and to revocation [or suspension] of license.  The amount of [penalty] fine assessed and collected by the commission or board from any licensee for any particular offense shall not exceed the sum of [$2,000.] $5,000.

     Whenever the service of any order or notice shall be required by this section, the service shall be made in the following manner:  in the case of any violation based upon the personal observation of any investigator, a written notice of the violation shall be given to the licensee or the licensee's registered manager in active charge of the premises, or by serving a certified copy of the notice or order upon the holder of the license wherever the holder may be found in the circuit wherein the holder is licensed, or, if the holder cannot be found after diligent search, by leaving a certified copy thereof at the holder's dwelling house or usual place of abode with some person of suitable age and discretion residing therein; and if the holder of the license cannot be found after diligent search, and service cannot be made, then service may be made by posting a certified copy of the notice or order in a conspicuous place on the licensed premises and depositing another certified copy thereof in the certified mail of the United States post office, postage prepaid, addressed to the holder of the license at the holder's last known residence address; provided that in the case of a partnership, corporation, unincorporated association, or limited liability company, service may be made upon any partner, officer, or member thereof."

     SECTION 23.  Section 281-32.3, Hawaii Revised Statutes, is repealed.

     ["§281-32.3  One-day special licenses for fundraising events.  Notwithstanding any other section of this chapter to the contrary, the commission shall adopt rules to streamline procedures including the waiving of hearings, fees, notarization of documents, submission of floor plans, and other requirements, to provide for the issuance of special licenses for the sale of liquor for a period not to exceed one day, for classes of fundraising events by nonprofit organizations established by the commission.  The commission shall also adopt rules to facilitate the issuance of such licenses through the mail.

     Any registered educational or charitable nonprofit organization may sell liquors in their original packages for off-premises consumption for fundraising events allowed in this section, in accordance with rules adopted by the commission pursuant to chapter 91."]

     SECTION 24.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 25.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

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