Honolulu, Hawaii

                , 2015


RE:   H.B. No. 293

      H.D. 1





Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii




     Your Committee on Economic Development & Business, to which was referred H.B. No. 293 entitled:




begs leave to report as follows:


     The purpose of this measure is to improve the efficiency of the liquor license application and renewal process by authorizing county liquor commissions to accept a certificate of vendor compliance issued by the State Procurement Office as satisfactory evidence of an applicant's tax clearance with the Internal Revenue Service and Department of Taxation.


     The Liquor Commission of the City and County of Honolulu testified in support of this measure.  The State Procurement Office provided comments.


     Currently, an applicant for a new liquor license, or an applicant for a transfer or renewal of an existing liquor license, must produce a signed certificate from the Department of Taxation and the Internal Revenue Service showing that the applicant does not owe the State or federal government any delinquent taxes, penalties, or interest.  Compliance with this requirement can be difficult and cumbersome, especially when large volumes of license renewals are received, causing delays in license issuance or renewals that may result in an applicant experiencing a break in liquor service or sales.  Allowing the use of certificates of vendor compliance, which certify that a vendor is compliant with all applicable laws and are issued by Hawaii Compliance Express would help to streamline the liquor license application and renewal process.


     Your Committee was informed by the State Procurement Office that certificates of vendor compliance are issued by Hawaii Compliance Express and not the State Procurement Office.  Accordingly, your Committee has amended this bill by changing the reference to the State Procurement Office as the agency that issues the certificate of vendor compliance to Hawaii Compliance Express.


     As affirmed by the record of votes of the members of your Committee on Economic Development & Business that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 293, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 293, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.


Respectfully submitted on behalf of the members of the Committee on Economic Development & Business,