HomeMy WebLinkAbout2016_0317 Liquor APPROVEDCOUNTY OF KAUAI
Minutes of Meeting
Open Session
Board /Committee:
LIQUOR CONTROL COMMISSION
Meeting Date
March 17, 2016
Location
Mo`ikeha Building, Meeting Room #3
Start of Meeting: 4:05 p.m.
End of Meeting: 5:04 p.m.
Present
Chair: Gerald Matsunaga, Vice Chair Shirley Akita; Members: Paul Endo, William Gibson, Jean Iida, Dane Oda, Josephine Sokei
Also: Liquor Control Staff. Director Gerald Rapozo, Private Secretary Cherisse Zaima; Deputy County Attorney Nicholas Courson
Excused
Chair Matsunaga called the meeting to order at
Absent
SUBJECT
DISCUSSION
ACTION
Call To Order
Prior to the start of the meeting, Council Administrative Assistant Eddie
Topenio gave the Oath of Office to new commission member William
Gibson.
Chair Matsunaga called the meeting to order at
4:0 p.m. with 7 members present, constituting a
quorum.
Roll Call
Director Rapozo called roll, noting 7 members were present.
Approval of the
Ms. Iida moved to approve the agenda. Ms.
Agenda
Sokei seconded the motion. Motion carried 7:0.
Approval of the
MINUTES OF THE MEETINGS OF MARCH 3, 2016
Ms. Iida moved to approve the minutes. Ms.
Minutes
Sokei seconded the motion. Motion carried 7:0.
L
DIRECTOR'S REPORT:
a) INVESTIGATORS' REPORTS
b) INCOMING COMMUNICATIONS:
(1) Delicato Family Vineyards
(2) The Wine Group
(3) Wismettac Asian Foods, Inc.
Kauai Liquor Control Commission
Open Session
March 17, 2016
Page 2
(4) Sweepstakes Consulting
(5) Disturbance Report from Joe's on the Green
c) OUTGOING COMMUNICATIONS:
(1) Delicato Family Vineyards
(2) The Wine Group
(3) Council Chair Mel Rapozo
d) EMPLOYEES IN LICENSED PREMISES:
Managers and Assistant Managers — See Attachment
e) ACTIONS OF THE DIRECTOR:
(1) KEOKI'S PARADISE
(2) SHERATON KAUAI RESORT
(3) THE WINE SHOP
(4) KAUAI COMMUNITY PLAYERS
f) INFORMATIONAL MATTERS:
Mr. Oda moved to receive Items 1(a) through (f).
Ms. Sokei seconded the motion. Motion carried
7:0.
2.
CHANGE IN AUTHORIZED AGENT:
EATING HOUSE 1849 BY ROY YAMAGUCHI: Removal of Feli
Ms. Iida moved to accept the change in corporate
Rivera as authorized agent effective immediately.
officer. Ms. Sokei seconded the motion. Motion
carried 7:0.
3.
PROPOSED AMENDMENTS TO THE RULES AND REGUALTIONS
OF THE KAUAI LIQUOR CONTROL COMMISSON:
Director Rapozo provided each commissioner with a copy of the proposed
rule amendments, gave information about the rule change process and
where we are at in the process, and welcomed any questions /discussion.
Once these proposed rule amendments go to public hearing, if they are
Kauai Liquor Control Commission
Open Session
March 17, 2016
Page 3
approved, because fees are involved in some of the amendments, these rules
will have to go to council for approval.
Director Rapozo noted HRS 281- 17(a)(4) gives the Commission authority
to amend rules as necessary, and HRS 281 -17.5 explains that whenever any
fee structures are changed or set, the amendments must also go the Mayor
and Council for approval.
The Commission agreed to go through the rules page by page and should
any questions on the amendments arise, they can be addressed at that time.
On Page 1, Rule 1.1 Definitions relating to "Condominium Hotel Guest
Room ", Deputy County Attorney Courson questioned whether the term
"adequate" in relation to lodging for transient guests was something that
was suggested by the Small Business Regulatory Review Board. Director
Rapozo replied that it was included by a previous Director when the rule
amendments were initially being worked on.
Commissioner Akita referenced Page 26, noting the terms "bona fide" and
"specific order ", relating to serving liquor. She asked for clarification on
both of those terms, and the difference between the two. Attorney Courson
stated he would consider "bona fide" to mean an allowable order, as in
someone was of legal age to order, or was not intoxicated or in a state that
would otherwise prohibit service. He further stated that "Specific Order"
would mean specific type of drink.
Investigator Lorenzo Moises added that there are different classes of
licenses, such as General and Beer & Wine, and stated for example that if
someone ordered a shot of hard liquor at an establishment licensed only for
Beer & Wine, that would not be considered a bona fide, or allowable order.
There was discussion on whether or not those terms should be included in
Kauai Liquor Control Commission
Open Session
March 17, 2016
the Definitions section of the rules.
Pate 4
Commissioner Matsunaga noted that he is concerned about the term "legal
age ", noting that the legal age for someone to serve alcohol is 18, while the
legal age to consume alcohol is 21. He feels when the rules reference "legal
age" it should be made clear as to which legal age is being referenced.
Director Rapozo noted that the Hawaii Revised Statutes states the definition
for "minor" is considered under 21 years, which the rules mirror.
Commissioner Matsunaga noted that the problem he sees is that the rules do
not use the term "minor ", it uses the term "legal age ". He suggested that
when "legal age" is referenced, it should state the age as well. For example
"a person of legal age of 21 years or older ".
Director Rapozo noted that Rule 2.5(b)(1) removes the requirement for a
Financial Statement since it is just an affidavit, and there was no one
verifying the information. Attorney Courson stated that even if they did
require a financial statement, the information provided wouldn't be a
decision - making factor for the Commission.
Commissioner
Gibson asked if the Condominium /Hotel
class
was a
new
class to which
Director Rapozo stated yes, it was added
a few
years
ago.
Director Rapozo noted that on Page 6 there is an added requirement for
liquor liability insurance for new and transfer applications. Commissioner
Endo asked whether this is requested periodically to ensure the insurance
has not lapsed. Director Rapozo explained that the insurance companies
inform the department when a licensee no longer has coverage, and should
the department find that the licensee does not have coverage, the
Commission would take action to suspend the license until the licensee does
so.
On Page 7 (g)(4), Commission Oda asked if there is a reason
Kauai Liquor Control Commission
Open Session
March 17, 2016
Pate 5
to eliminate the listing of the age of the person in charge of security to
which Director Rapozo replied there is no age requirement for security on
the regulation side. Attorney Courson added that he favors not knowing
personal, identifying information due to the potential for discrimination.
Commissioner Oda stated his reason for asking, questioning whether there
is an age limit for being in a bar. Director Rapozo explained it depends on
the class of license, noting that if the revenues from the sale of alcohol are
75% or more, minors (17 and below) cannot be on premise.
Referencing Page 8 (k), Commissioner Akita asked for clarification to
which Commissioner Matsunaga explained that should the law change, the
licensee is responsible to be aware of any new laws. Ignorance is no
excuse.
Referencing Rule 2.8 on Page 8, Director Rapozo explained that currently,
Special licenses and Transient Vessel licenses require a $100 filing fee for a
license that costs $33; the remainder of the deposit gets refunded to the
applicant once the event is complete. This rule change will do away with
the filing, and only require the license fee, which will make the process
simpler and more efficient.
Referencing Page 10, Rule 2.13 Director Rapozo explained "tasting event"
was added because such events did not fall under the "trade show"
designation. Tasting events are generally held at retail establishments.
Attorney Courson asked if it was otherwise understood what a tasting event
is to which Director Rapozo replied yes, a later part of the rule addresses
that.
On Page 11, Rule 2.15 Commissioner Matsunaga suggested they do away
with the requirement for the affidavit explaining the cause of the loss of the
license, and simply have the licensee pay $25 for the duplicate. The
Kauai Liquor Control Commission
Open Session
March 17, 2016
Page 6
suggested amendment would read: A licensee shall submit a letter stating
the license was lost, destroyed or mutilated, and a fee of $25 will be
charged for a duplicate license to replace the lost, destroyed or mutilated
license. Sub - sections b and c would be removed.
Page 12, Rule 3.1 clarifies that the original license must be posted, not a
Xerox copy; this ensures the establishment has a legitimate license.
Commissioner Endo commented that with the technology available today, it
would be easy to duplicate a license. Director Rapozo noted that each year
the Department uses a different color license to help the investigators easily
determine whether it is current. Staff noted that the original license would
have a gold, embossed seal that cannot be duplicated.
Referencing Rule 4, 1, Director Rapozo explained the basic fees structure for
the different types of licenses, also noting that in addition to basic fees,
licensees pay an annual percentage fee, with the exception of wholesale and
manufacturer licensees.
Referencing Rule 7. 1, Director Rapozo explained the stacking rule currently
allows one (1) 12 oz. beer and one (1) shot to be considered one drink. The
amendment changes the rule to consider one (1) beer and one (1) shot as
two drinks. In addition, the two separate drinks cannot collectively exceed
the 16 oz. total serving size.
Referencing Rule 8.7, Commissioner Matsunaga suggested the deletion of
sub - sections (b) and (c); sub - section (a) is sufficient.
Announcements
Next Scheduled Meeting: Thursday, April 7, 2016 — 4:00 pm, Mo`ikeha
Building, Meeting Room #3.
Director Rapozo informed the Commission that Theresa Koki, Anti -Drug
Coordinator, will be briefing the Commission on the grant she received in
Kauai Liquor Control Commission
Open Session
March 17, 2016
Page 7
Submitted by:
Cherisse Zaima, Private Secretary
Reviewed and Approved by:
Gerald Matsunaga, Chair
the amount of $110,000, which could include prevention on underage
drinking.
Adjournment
Chair Matsunaga adjourned the meeting at 5:04
p.m.
Submitted by:
Cherisse Zaima, Private Secretary
Reviewed and Approved by:
Gerald Matsunaga, Chair