Liquor Regulation

Repeals law on the liquor commissions and authorizes the counties
to regulate the area.

THE SENATE                              S.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Chapter 46, Hawaii Revised Statutes, is amended
 2 by adding a new section to be appropriately designated and to
 3 read as follows:
 4      "46-     Liquor commission.  (a)  A county, either alone or
 5 together with any other county or counties, may establish by
 6 charter or by ordinance a liquor commission that shall have
 7 jurisdiction, power, authority, and discretion to do any or all
 8 of the following:
 9      (1)  To grant, refuse, suspend, and revoke any licenses for
10           the manufacture, importation, and sale of liquors;
11      (2)  To take appropriate action against a person who,
12           directly or indirectly, manufactures or sells any
13           liquor without county authorization;
14      (3)  To control, supervise, and regulate the manufacture,
15           importation, and sale of liquors by investigation,
16           enforcement, and education;
17      (4)  To adopt, amend, or repeal ordinances and rules
18           appropriate for carrying out this section;
19      (5)  To appoint and remove an administrator, who may also be

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 1           appointed an investigator and who shall be responsible
 2           for the operations and activities of the staff.  The
 3           administrator may hire and remove hearing officers,
 4           investigators, and clerical or other assistants as its
 5           business may from time to time require, to prescribe
 6           their duties, and fix their compensation; to engage the
 7           services of experts and persons engaged in the practice
 8           of a profession, if deemed expedient.  Every
 9           investigator, within the scope of the investigator's
10           duties, shall have the powers of a police officer.  No
11           employee of any commission, aside from exercising the
12           right to vote, shall support, advocate, or aid in the
13           election or defeat of any candidate for public office,
14           and upon satisfactory proof of such prohibited activity
15           the offender shall be summarily dismissed;
16      (6)  To limit the number of licenses of any class or kind
17           within the county, or the number of licenses of any
18           class or kind to do business in any given locality,
19           when in the judgment of the commission those
20           limitations are in the public interest;
21      (7)  To prescribe the nature of the proof to be furnished,
22           the notices to be given, and the conditions to be met
23           or observed in case of the issuance of a duplicate

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 1           license in place of one alleged to have been lost or
 2           destroyed, including a requirement of any indemnity
 3           deemed appropriate to the case;
 4      (8)  To fix the hours between which licensed premises of any
 5           class or classes may regularly be open for the
 6           transaction of business, which shall be uniform
 7           throughout the county as to each class respectively;
 8      (9)  To prescribe all forms to be used for the purposes of
 9           this chapter not otherwise provided for in this
10           chapter, and the character and manner of keeping of
11           books, records, and accounts to be kept by licensees in
12           any matter pertaining to their business;
13     (10)  To investigate violations of this section and any
14           relevant, related state law, through its investigators
15           or otherwise, including covert operations, and to
16           report violations to the prosecuting officer for
17           prosecution and, where appropriate, the director of
18           taxation to hear and determine complaints against any
19           licensee;
20     (11)  To prescribe the terms, conditions, and circumstances
21           under which persons or any class of persons may be
22           employed by holders of licenses;
23     (12)  To prescribe the term of any license or solicitor's and

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 1           representative's permit authorized by this section, the
 2           annual or prorated amount, the manner of payment of
 3           fees for the licenses and permits, and the amount of
 4           filing fees; and
 5     (13)  To prescribe the circumstances and penalty for the
 6           unauthorized manufacturing or selling of any liquor.
 7      (b)  Subject only to this section, the commission and each
 8 member thereof shall have the same powers respecting the
 9 administering of oaths, compelling the attendance of witnesses
10 and the production of documentary evidence, and examining the
11 witnesses as are possessed by a circuit court, except that the
12 commission and each member thereof shall not be bound by the
13 strict legal rules of evidence.  In addition, the commission
14 shall have the power to require the production of, and to examine
15 any books, papers, and records of any licensee which may pertain
16 to the licensee's business under the license or which may pertain
17 to a matter at a hearing before the commission or to an
18 investigation by the commission.
19      The exercise by the commission of the power, authority, and
20 discretion vested in it pursuant to this section shall be final
21 and shall not be reviewable by or appealable to any court or
22 tribunal, except as otherwise provided in chapter 91."
23      SECTION 2.  Section 26-14.6, Hawaii Revised Statutes, is

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 1 amended by amending subsection (f) to read as follows:
 2      "(f)  Effective July 1, 1990, the functions, authority, and
 3 obligations, together with the limitations imposed thereon and
 4 the privileges and immunities conferred thereby, exercised by a
 5 "sheriff", "sheriffs", a "sheriff's deputy", "sheriff's
 6 deputies", a "deputy sheriff", "deputy sheriffs", or a "deputy",
 7 under sections 21-8, 47-18, 88-51, 105-4, 134-11, 134-51,
 8 183D-11, 187A-14, 201G-55, 201G-74, 231-25, [281-108, 281-111,]
 9 286-52, 286-52.5, 321-1, 322-6, 325-9, 325-80, 353-11, 383-71,
10 438-5, 445-37, 482E-4, 485-6, 501-42, 501-171, 501-218, 521-78,
11 578-4, 584-6, 587-33, 603-29, 604-6.2, 606-14, 607-2, 607-4,
12 607-8, 633-8, 634-11, 634-12, 634-21, 634-22, 651-33, 651-37,
13 651-51, 654-2, 655-2, 657-13, 660-16, 666-11, 666-21, 803-23,
14 803-34, 803-35, 804-14, 804-18, 804-41, 805-1, 806-71, and 832-23
15 shall be exercised to the same extent by the department of public
16 safety."
17      SECTION 3.  Section 237-25, Hawaii Revised Statutes, is
18 amended by amending subsection (a) to read as follows:
19      "(a)  Any provision of law to the contrary notwithstanding,
20 there shall be exempted from, and excluded from the measures of,
21 the tax imposed by chapter 237 all sales, and the gross proceeds
22 of all sales, of:
23      (1)  Intoxicating liquor, as defined in [chapter 281,

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 1           hereafter] section 244D-1, sold by any person licensed
 2           [under chapter 281] by a county, if the county has
 3           exercised its licensing authority over intoxicating
 4           liquors, to the United States (including any agency or
 5           instrumentality of the United States that is wholly
 6           owned or otherwise so constituted as to be immune from
 7           the levy of a tax under chapter 238 or 244D but not
 8           including national banks), [or to any organization to
 9           which that sale is permitted by the proviso of "Class
10           3" of section 281-31, located on any Army, Navy, or Air
11           Force reservation,] but the person making the sale
12           shall nevertheless, within the meaning of chapters 237,
13           and 244D[, and 281] be deemed to be a licensed seller;
14      (2)  Tobacco products and cigarettes, as defined in chapter
15           245, sold by any person licensed under the chapter to
16           the United States (including any agency or
17           instrumentality thereof that is wholly owned or
18           otherwise so constituted as to be immune from the levy
19           of a tax under chapter 238 or 245 but not including
20           national banks), but the person making the sale shall
21           nevertheless, within the meaning of chapters 237 and
22           245, be deemed to be a licensed seller;
23      (3)  Other tangible personal property sold by any person

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 1           licensed under this chapter to the United States
 2           (including any agency, instrumentality, or federal
 3           credit union thereof but not including national banks),
 4           and to any state-chartered credit union, but the person
 5           making such sale shall nevertheless, within the meaning
 6           of this chapter, be deemed a licensed seller; and
 7      (4)  When the amount of property sold by a licensee turns
 8           upon the amount of the property sold through a vending
 9           machine or similar device to the customer using the
10           device, there shall not be deemed to have occurred any
11           sale covered by an exemption under paragraph (1), (2),
12           or (3)."
13      SECTION 4.  Section 244D-1, Hawaii Revised Statutes, is
14 amended as follows:
15      1.  By amending the definition of "licensed premises" to
16 read:
17      ""Licensed premises" [shall have the same meaning as the
18 term is used in chapter 281.] means premises in respect of which
19 a license has been or is proposed to be issued, provided that the
20 county has exercised its licensing authority over intoxicating
21 liquors."
22      2.  By amending the definition of "liquor" to read:
23      ""Liquor" [has the same meaning as set forth in section

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 1 281-1 and includes alcohol, and the liquor categories:  beer,
 2 draft beer, cooler beverage, distilled spirits, and wine.] or
 3 "intoxicating liquor" includes alcohol, brandy, whiskey, rum,
 4 gin, okolehao, sake, beer, ale, porter, and wine; and also
 5 includes, in addition to the foregoing, any spirituous vinous,
 6 malt or fermented liquor, liquids, and compounds, whether
 7 medicated, proprietary, patented, or not, in whatever form and of
 8 whatever constituency and by whatever name called, containing
 9 one-half of one per cent or more of alcohol by volume, which are
10 fit for use or may be used or readily converted for use for
11 beverage purposes."
12      3.  By amending the definition of "liquor law" to read:
13      ""Liquor law" means [chapter 281.] the county liquor law, if
14 such a law exists."
15      SECTION 5.  Section 244D-2, Hawaii Revised Statutes, is
16 amended by amending subsection (a) to read as follows:
17      "(a)  [It] If a county has exercised its licensing authority
18 over intoxicating liquors through the establishment of a county
19 liquor commission, it shall be unlawful for any dealer to sell
20 liquor unless a permit has been issued to the dealer as
21 hereinafter prescribed, and such permit is in full force and
22 effect."
23      SECTION 6.  Section 244D-4, Hawaii Revised Statutes, is

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 1 amended by amending subsection (b) to read as follows:
 2      "(b)  The tax levied pursuant to subsection (a) shall be
 3 paid only once upon the same liquor; provided further that the
 4 tax shall not apply to:
 5      (1)  Liquor held for sale by a permittee but not yet sold;
 6      (2)  Liquor sold by one permittee to another permittee;
 7      (3)  Liquor which under the Constitution and laws of the
 8           United States cannot be legally subjected to the tax
 9           imposed by this chapter so long as and to the extent to
10           which the State is without power to impose the tax; or
11      (4)  Liquor sold for sacramental purposes or the use of
12           liquor for sacramental purposes[, or any liquor
13           imported pursuant to section 281-33;
14      (5)  Alcohol sold pursuant to section 281-37 to a person
15           holding a purchase permit or prescription therefor, or
16           any sale or use of alcohol, so purchased, for other
17           than beverage purposes]."
18      SECTION 7.  Section 244D-10, Hawaii Revised Statutes, is
19 amended to read as follows:
20      "244D-10  Inspection.  The director of taxation, the county
21 liquor commission, or the duly authorized agent of either the
22 director or commission, may examine all records required to be
23 kept under this chapter, and books, papers, and records of any

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 1 person engaged in the sale of liquor to verify the accuracy of
 2 the payment of the tax imposed by this chapter and other
 3 compliance with this chapter and regulations adopted pursuant
 4 thereto.  Every person in possession of such books, papers, and
 5 records and the person's agents and employees shall give the
 6 director, the commission, or the duly authorized agent of either
 7 of them, the means, facilities, and opportunities for such
 8 examination.
 9      The authority granted to the liquor commission under this
10 section shall not conflict with section 231-18 and shall not
11 extend to the inspection of any documents not directly related to
12 this chapter."
13      SECTION 8.  Section 244D-13, Hawaii Revised Statutes, is
14 amended to read as follows:
15      "244D-13  Other provisions applicable.  All of the
16 provisions of chapters 235 and 237 not inconsistent with this
17 chapter and which may appropriately be applied to the taxes,
18 persons, circumstances, and situations involved in this chapter,
19 including (without prejudice to the generality of the foregoing)
20 provisions as to penalties and interest, and provisions granting
21 administrative powers to the director of taxation, and provisions
22 for the assessment, levy, and collection of taxes, shall be
23 applicable to the taxes imposed by this chapter, and to the

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 1 assessment, levy, and collection thereof, except that returns,
 2 return information, or reports under this chapter and relating
 3 only to this chapter may be made known to the county liquor
 4 commission by the department of taxation, if not in conflict with
 5 section 231-18."
 6      SECTION 9.  Section 291-1, Hawaii Revised Statutes, is
 7 amended by amending the definition of "intoxicating liquor" to
 8 read as follows:
 9      ""Intoxicating liquor" means the same as the term is defined
10 in section [281-1.] 244D-1."
11      SECTION 10.  Section 304-55, Hawaii Revised Statutes, is
12 amended to read as follows:
13      "304-55  Courses of instruction.  [Chapter 281, or any] Any
14 other law to the contrary notwithstanding, the University of
15 Hawaii may offer and conduct courses of instruction in food and
16 beverage control, club management, and classical food and
17 beverage management, which include wine tasting, through any
18 campus of the university including the community colleges; and
19 shall admit qualified students to such courses even if the
20 students are below the age of eighteen."
21      SECTION 11.  Section 461-1, Hawaii Revised Statutes, is
22 amended by amending the definition of "drug" to read as follows:
23      ""Drug" means (1) articles recognized in the official United

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 1 States pharmacopoeia, official homeopathic pharmacopoeia of the
 2 United States, or official national formulary, or any supplement
 3 to any of them, intended for use in the diagnosis, cure,
 4 mitigation, treatment, or prevention of disease in human beings
 5 or animals; and (2) articles (other than food or clothing)
 6 intended to affect the structure or any function of the body of
 7 human beings or animals; and (3) articles intended for use as a
 8 component of any articles specified in clause (1) or (2), above;
 9 provided that the term "drug" shall not include patent medicines,
10 electrical or mechanical devices, cosmetics, and liquor as
11 defined in section [281-1.] 244D-1."
12      SECTION 12.  Section 489-2, Hawaii Revised Statutes, is
13 amended by amending the definition of "place of public
14 accommodation" to read as follows:
15      "Place of public accommodation" means a business,
16 accommodation, refreshment, entertainment, recreation, or
17 transportation facility of any kind whose goods, services,
18 facilities, privileges, advantages, or accommodations are
19 extended, offered, sold, or otherwise made available to the
20 general public as customers, clients, or visitors.  By way of
21 example, but not of limitation, place of public accommodation
22 includes facilities of the following types:
23      (1)  A facility providing services relating to travel or

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 1           transportation;
 2      (2)  An inn, hotel, motel, or other establishment that
 3           provides lodging to transient guests;
 4      (3)  A restaurant, cafeteria, lunchroom, lunch counter, soda
 5           fountain, or other facility principally engaged in
 6           selling food for consumption on the premises of a
 7           retail establishment;
 8      (4)  A shopping center or any establishment that sells goods
 9           or services at retail;
10      (5)  An establishment licensed under [chapter 281 doing
11           business under a class 4, 5, 7, 8, 9, 10, 11, or 12
12           license, as defined in section 281-31;] any county
13           liquor law;
14      (6)  A motion picture theater, other theater, auditorium,
15           convention center, lecture hall, concert hall, sports
16           arena, stadium, or other place of exhibition or
17           entertainment;
18      (7)  A barber shop, beauty shop, bathhouse, swimming pool,
19           gymnasium, reducing or massage salon, or other
20           establishment conducted to serve the health,
21           appearance, or physical condition of persons;
22      (8)  A park, a campsite, or trailer facility, or other
23           recreation facility;

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 1      (9)  A comfort station; or a dispensary, clinic, hospital,
 2           convalescent home, or other institution for the infirm;
 3     (10)  A professional office of a health care provider, as
 4           defined in section 323D-2, or other similar service
 5           establishment;
 6     (11)  A mortuary or undertaking establishment; and
 7     (12)  An establishment that is physically located within the
 8           premises of an establishment otherwise covered by this
 9           definition, or within the premises of which is
10           physically located a covered establishment, and which
11           holds itself out as serving patrons of the covered
12           establishment.
13      No place of public accommodation defined in this section
14 shall be requested to reconstruct any facility or part thereof to
15 comply with this chapter."
16      SECTION 13.  Section 712-1240, Hawaii Revised Statutes, is
17 amended by amending the definition of "intoxicating liquor" to
18 read as follows:
19      ""Intoxicating liquor" means any substance defined as
20 "liquor" or "intoxicating liquor" by [section 281-1.] section
21 244D-1."
22      SECTION 14.  Section 831-3.1, Hawaii Revised Statutes, is
23 amended by amending subsection (a) to read as follows:

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 1      "(a)  A person shall not be disqualified from public office
 2 or employment by the State or any of its political subdivisions
 3 or agencies except under section 831-2(c), or be disqualified to
 4 practice, pursue, or engage in any occupation, trade, vocation,
 5 profession, or business for which a permit, license,
 6 registration, or certificate is required by the State or any of
 7 its political subdivisions or agencies, solely by reason of a
 8 prior conviction of a crime; provided that with respect to liquor
 9 licenses, a person who has been convicted of a felony may be
10 denied a liquor license by the liquor commission[.], if such
11 commission exists."
12      SECTION 15.  Section 846-42, Hawaii Revised Statutes, is
13 amended by amending subsection (a) to read as follows:
14      "(a)  [The] A county liquor [commissions] commission may
15 request a background check on an applicant for a liquor license.
16 For the purposes of this section, "criminal history record check"
17 means an examination or search for evidence of an individual's
18 criminal history by means of:
19      (1)  A search for the individual's fingerprints in the
20           national criminal history record files and, if found,
21           an analysis and any other information available
22           pertaining thereto; and
23      (2)  A criminal history record check conducted by the

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 1           Hawaii criminal justice data center; provided that the
 2           Hawaii criminal justice data center may charge a
 3           reasonable fee for criminal history record checks
 4           performed.
 5      The background check, at a minimum, shall require the
 6 applicant to disclose whether:
 7      (1)  The applicant has been convicted in any jurisdiction of
 8           a crime that would tend to indicate the applicant may
 9           be unsuited for obtaining a liquor license; and
10      (2)  The judgment of conviction has not been vacated.
11      For the purpose of this section, the criminal history
12 disclosure made by the applicant may be verified by the liquor
13 commission by means of information obtained through the Hawaii
14 criminal justice data center.  The applicant shall provide the
15 Hawaii criminal justice data center with personal identifying
16 information which shall include, at a minimum, the applicant's
17 name, social security number, date of birth, and sex.  This
18 information shall be secured only for the purpose of conducting
19 the criminal history record check authorized by this section."
20      SECTION 16.  Chapter 281, Hawaii Revised Statutes, is
21 repealed.
22      SECTION 17.  Statutory material to be repealed is bracketed.
23 New statutory material is underscored.

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 1      SECTION 18.  This Act shall take effect on July 1, 2001.
 3                       INTRODUCED BY:  ___________________________