Report Title:

Liquor Licenses; Temporary Tax Clearance

 

Description:

Creates a 3-year program that allows liquor establishments to obtain a liquor license from a Liquor Commission if they have obtained temporary tax clearance from the Department of Taxation by entering into a payment plan with the department for the payment of taxes.  (HB651 HD1)

 


HOUSE OF REPRESENTATIVES

H.B. NO.

651

TWENTY-FIFTH LEGISLATURE, 2009

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

RELATING TO INTOXICATING LIQUOR.

 

 

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

 


     SECTION 1.  Section 231-28, Hawaii Revised Statutes, is amended to read as follows:

     "§231-28  Tax clearance before procuring liquor licenses.  (a)  No liquor licenses shall be issued or renewed unless the applicant therefor shall present to the issuing agency, a certificate signed by the director of taxation, showing that the applicant does not owe the State any delinquent taxes, penalties, or interest.

     (b)  For the period from January 1, 2010, to December 31, 2012, a temporary liquor license may be issued if the applicant shall present to the issuing agency a temporary certificate signed by the director of taxation showing that the applicant has entered into a payment plan with the director of taxation for the filing of the return and the payment of taxes for a period of time to be determined by the director of taxation.  If, at any time during the period of time covered under the payment plan, the applicant becomes delinquent in either the filing of the return or the payment of taxes due thereon, the director of taxation shall revoke the temporary certificate and immediately notify the issuing agency of the revocation."

     SECTION 2.  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, 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, 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, kind, and category currently or previously 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 become a realization of the county;

     (5)  For the period from January 1, 2010, to December 31, 2012, the application for a temporary license may be accompanied by a temporary tax clearance granted by the director of taxation showing that the applicant has a temporary permit to file returns under a payment plan entered into with the director of taxation for the payment of taxes, penalties, or interest owing to the State; provided that the temporary license shall be revoked pursuant to section 281-91 upon receipt of written notice from the director of taxation that the director of taxation has revoked the temporary permit to file returns under the payment plan;

    [(5)] (6)  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 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)] (7)  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; and

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

     SECTION 3.  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) 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 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 paragraph (1) 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; provided that for the period from January 1, 2010, to December 21, 2012, the applicant or the transferor and transferee may present to the issuing agency a signed temporary certificate from the director of taxation showing that the applicant or the transferor and transferee has a temporary permit to file returns under a payment plan entered into with the director of taxation for the payment of taxes, penalties, or interest owing to the State; provided that the license shall be revoked pursuant to section 281-91 upon receipt of written notice from the director of taxation that the director of taxation has revoked the temporary permit to file returns under the payment plan; 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 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2112.