STAND. COM. REP. NO.  83

 

Honolulu, Hawaii

                , 2009

 

RE:   H.B. No. 651

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Sir:

 

     Your Committee on Economic Revitalization, Business, & Military Affairs, to which was referred H.B. No. 651 entitled:

 

"A BILL FOR AN ACT RELATING TO INTOXICATING LIQUOR,"

 

begs leave to report as follows:

 

     The purpose of this bill is to give persons who are delinquent in paying state taxes, a three-year window of opportunity to obtain, renew, or transfer a liquor license if they have entered into a payment plan with the Director of Taxation and are current in payments and not in default.

 

     The Department of Taxation and Honolulu Liquor Commission commented on this measure.

 

     Under current liquor law, a tax clearance must be obtained before a person may obtain, renew, or transfer a liquor license.  This bill gives liquor licensees who have become delinquent in tax payments during the economic downturn, an opportunity to continue doing business so long as they pay their back-taxes.

 

     Your Committee has concerns that this measure may reduce incentives for liquor licensees to remain current in their tax payments, and believes that there must be further discussion on this issue.  In addition, to avoid constitutional due process issues and litigation, your Committee recognizes that a license should not be summarily revoked.  Accordingly, your Committee has amended this bill by:

 

(1)  Providing that a licensee is entitled to notice and a hearing pursuant to section 281-91, Hawaii Revised Statutes, before a license is revoked for a default under a payment plan; and

 

     (2)  Changing the effective date of the bill to July 1, 2112.

 

     Technical, nonsubstantive amendments were also made for clarity, consistency, and style.

 

     As affirmed by the record of votes of the members of your Committee on Economic Revitalization, Business, & Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 651, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 651, 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 Revitalization, Business, & Military Affairs,

 

 

 

 

____________________________

ANGUS L.K. MCKELVEY, Chair