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HomeMy WebLinkAbout2020_0820 Liquor Open Session APPROVED COUNTY OF KAUAI Minutes of Meeting OPEN SESSION Approved with amendments. See minutes of 9/17/2020. Board/Commission: LIQUOR CONTROL COMMISSION Meeting Date August 20, 2020 Location Tele Conference via Microsoft Teams Audio +1 469-848-0234, Conference ID: 494-478-484 # Start of Meeting: 10:00 a.m. End of Meeting:10:50 a.m. Tele Present Vice Chair Maryanne Kusaka Members: Dee Crowell, William Gibson, Gerald Matsunaga, Randall Nishimura, Gary Pacheco Also: Liquor Control Staff: Investigator Kenneth Herman , Liquor Clerical Assistant Malialani TM Kelekoma; Boards and Commission Ellen Ching, Deputy County Attorney Todd Jenson Excused Chair Shirley Akita Absent SUBJECT DISCUSSION ACTION Call To Order Vice Chair Kusaka called meeting to order @ 10:04 a.m. Roll Call Investigator Kenneth Herman called roll, noting 6 members were present, 1 excused Chair Akita, constituting a quorum. Approval of Agenda Vice Chair Kusaka noted that there was an Omission to add Street Burger to the Public Hearing. She asked if anyone was online to represent Street Burger, hearing none. She requested to put Street Burger on the next meeting September 3, 2020 for Public Hearing. Mr. Pacheco moved to approve the agenda. Mr. Gibson seconded the motion. Motion carried 6:0 APPROVAL OF MEETING MINUTES: a) Open Session Minutes of May 21,2020 Page 1 Roll Call remove (would). Page 3 Column Action Delete for Publication and Public Hearing Page 6 2nd paragraph, 9th sentence add (since), 10th sentence remove (and) add we. Page 7 4th sentence add (might). b) Executive Session Minutes of May 21, 2020 c) Open Session Minutes of June 4, 2020 Liquor Control Commission Open Session August 20, 2020 Page 2 SUBJECT DISCUSSION ACTION Page 4 5th paragraph remove (Vice) Page 7 6th paragraph 2nd sentence add (and). Third sentence remove (For those that read it when we are done) add (We can include it in the definition section.) Last paragraph add (there being none, she stated). Page 9 6th paragraph delete (they). Page 10 1st paragraph Add (Add (“must”) add (‘shall”) add (was). Page 12 3rd sentence Add (the change) add (placed as). d) Executive Session Minutes of June 4, 2020 Page 3 5th paragraph 1st sentence remove (were) add (when people) remove were. Page 5 3rd paragraph add (s) to bring. Page 8 2nd Paragraph Remove (our) add (at a) remove (we).4th paragraph removed (to) add (thanks) add (that). e) Open Session Minutes of June 18, 2020 Commissioner Nishimura requested to defer to September 3, 2020 f) Executive Session Minutes of June 18, 2020 Page 4 6th paragraph add (are). Page 7 5th paragraph added (understanding). Page 8 1st paragraph Removed (and) added (it would ne more) removed (and to ask Mr. Jenson should he have any questions. Before we meet with the Mayor, it would be viewed first). Page 9 6th paragraph 8th sentence add (approval). g) Open Session Minutes of August 6, 2020 h) Executive Session Minutes of August 6, 2020 Mr. Pacheco moved to approve the Open and Executive Session minutes from a through h. and it was seconded by Mr. Gibson; however, Mr. Nishimura pointed out the Open Session minutes for June 18, 2020 needed to be deferred to September 3, 2020 to include in the Motion. Vice Chair Kusaka called for a motion to amend Mr. Pacheco’s motion and Mr. Gibson seconded. Motion #1: Mr. Gibson moved to approve meeting minutes for a through d and f through h with amendments Defer e to September 3, 2020. Mr. Matsunaga seconded the motion. Motion Carried 6:0. Liquor Control Commission Open Session August 20, 2020 Page 3 SUBJECT DISCUSSION ACTION 1. DIRECTOR’S REPORTS: a) INVESTIGATORS’ REPORTS: b) INCOMING COMMUNICATIONS: 1) From Bob Gunter, Kōloa Rum to Chair Shirley Akita c) ACTIONS OF THE DIRECTOR: 1) SUSHI BUSHIDO: Approval of special request for temporary increase of premises to include area outside of the restaurant, per diagram submitted, from August 1, 2020 through November 30, 2020 from 11:00 a.m. to 12:00 a.m. 2) TROY’S: Approval of special request for temporary decrease of premises for private event on August 8, 2020 from 11:00 a.m. to 2:00 p.m. 3) WRANGLER’S RESTAURANT: Approval of special request for temporary increase of premises to include the area fronting the restaurant, per diagram submitted, from August 1, 2020 through October 31, 2020 from 11:00 a.m. to 11:00 p .m. d) INFORMATIONAL MATTERS NONE Mr. Nishimura moved to accept the Investigator’s Report. Mr. Matsunaga moved to second. Motion carried 6:0 Mr. Nishimura moved to receive Incoming Communications from Bob Gunter, Koloa Rum to Chair Shirley Akita dated June 20, 2020. Mr. Gibson seconded the Motion. Motion carried 6:0. Mr. Pacheco moved to accept the Actions of the Director c) 1 through 3. Mr. Gibson seconded the motion. Motion Carried 6:0. 2. CHANGE IN CORPORATE OFFICERS: RED ROOSTER RESTAURANTS, LLC: Removal of Jose Cortez as General Manager. Mr. Pacheco moved to approve change in Corporate Officers for Red Rooster Restaurants, LLC removal of Jose Cortez as General Manager. Mr. Gibson seconded the motion. Motion Carried 6:0. Liquor Control Commission Open Session August 20, 2020 Page 4 SUBJECT DISCUSSION ACTION 3. VIOLATION REPORTS: a) ALOHA SPIRITS: Violation of HRS 281-78(b)(1)(A) b) SAFEWAY STORES, NO. 2894: Violation of HRS 281-78(b)(1)(A) c) ISLAND COUNTRY MARKETS: Violation of HRS 281-78(B)(1)(A) Mr. Matsunaga moved to set a Violation Hearing for a) Aloha Spirits b) Safeway Stores, No.2894 and c) Island Country Markets on September 3, 2020. Mr. Gibson seconded the motion. Motion Carried 6:0. 4. CANCELLATION OF LIQUOR LICENSE: FOODLAND SUPER MARKET KAPAA: Cancellation of Retail Dealer General License No. 4G-019 issued to Foodland Super Market, Ltd. dba Foodland Super Market Kapa’a. Mr. Pacheco moved to accept Cancellation of Liquor License for Foodland Super Market Kapa’a. Mr. Gibson seconded the motion. Motion Carried 6:0. 5. STATUS REPORT, DISCUSSION AND DECISION MAKING ON THE RECOMMENDATIONS OF THE WORKING GROUP ON THE JOB ADVERTISEMENT AND JOB DESCRIPTION OF THE DIRECTOR OF THE DEPARTMENT OF LIQUOR CONTROL. Commissioner Nishimura stated we have not provided a report to date, just verbal. Is that to be approved? He asked if the Commissioners had a chance to review the changes to the Job Description and Job Advertisement which were distributed. Vice Chair Kusaka stated that she does have some concerns but does not want to discuss now, until everyone has a chance to look at the Status Report. Commissioner Nishimura stated on July 16, 2020 the documents were distributed and the Commission will need to respond to it. Liquor Control Commission Open Session August 20, 2020 Page 5 SUBJECT DISCUSSION ACTION Commissioner Crowell requested a copy of both the Job Description and Advertisement. Commissioner Nishimura requested that the Commission submit their comments by August 25, 2020. Vice Chair Kusaka asked Commissioner Nishimura where he got the Job Description, from Personnel or was it drafted by the Committee. Commissioner Nishimura responded Job Description was approved in April or May of this year by the Commission. There were a couple of items that were changed. Vice Chair Kusaka requested that the changes be highlighted so that it’s clear, and for the Job Description what is being added or removed. Commissioner Nishimura pointed out the two items for the Job Description. Page 1 of the Job Description under Job Purpose (of the Chairperson) and (other Commissioners) was scratched out. The second item to be changed is on the 2nd Page added Collaborate with the Mayor and Administration to effectively enforce the Liquor Laws of the State of Hawaii, and The County of Kauai. In addition to the Commission the Director will be working with the Administration. Vice Chair Kusaka requested that she would like to look at it more in context. Commissioner Nishimura said that was the only changes. The Advertisement was drafted by Judge Matsunaga, Commissioner Nishimura and Ms. Ching. Vice Chair Kusaka requested that the Job Advertisement be looked at, it needs to be rewritten for publication. It’s a reflection of the Department, Personnel, and Commission. Liquor Control Commission Open Session August 20, 2020 Page 6 SUBJECT DISCUSSION ACTION Commissioner Nishimura requested that the comments be submitted by August 25, 2020. The Commission will be able to discuss at the next meeting. Vice Chair Kusaka advised Commissioners to have their comments to Mr. Nishimura by August 25, 2020. She also noted the two corrections made to the Job Description for approval. Mr. Nishimura asked Ms. Ching if it would be appropriate to send to her office. Ms. Ching replied yes, that she will be able to collate the comments, indicate who the comments are from. She will be working with the working group on how to present to the Commission. Commissioner Crowell requested a Word Document. Vice Chair Kusaka requested that it be in a format editable through Apple. Mr. Crowell moved to defer Items: 5, 6, 7, and 8 to September 3, 2020. Mr. Gibson seconded the motion. Motion Carried 6:0. 6. STATUS REPORT AND RECOMMENDATIONS REGARDING THE HIRING OF A NEW DIRECTOR OF LIQUOR FROM THE PERMITTED INTERACTION GROUP (PIG) ON THE SCREENING PROCESS FOR THE APPLICANTS. Ms. Ching recommended to table 6, 7, and 8 as they are linked, the first step is number 5. Mr. Crowell moved to defer Items: 5, 6, 7, and 8 to September 3, 2020. Mr. Gibson seconded the motion. Motion Carried 6:0. 7. STATUS REPORT AND RECOMMENDATIONS REGARDING THE HIRING OF A NEW DIRECTOR OF LIQUOR FROM THE PERMITTED INTERACTION GROUP (PIG) ON THE WRITTEN QUESTIONS FOR THE APPLICANTS AND THE REVIEW OF THE SCREENING TOOL. Ms. Ching recommended to table 6, 7, and 8 as they are linked, the first step is number 5. Mr. Crowell moved to defer Items: 5, 6, 7, and 8 to September 3, 2020. Mr. Gibson seconded the motion. Motion Carried 6:0. Liquor Control Commission Open Session August 20, 2020 Page 7 SUBJECT DISCUSSION ACTION 8. STATUS REPORT AND RECOMMENDATIONS, REGARDING THE HIRING OF A NEW DIRECTOR OF LIQUOR FROM THE PERMITTED INTERACTION GROUP (PIG) ON ORAL INTERVIEW QUESTIONS AND A SCREENING TOOL OF THE APPLICANTS. Ms. Ching recommended to table 6, 7, and 8 as they are linked, the first step is number 5. Mr. Crowell moved to defer Items: 5, 6, 7, and 8 to September 3, 2020. Mr. Gibson seconded the motion. Motion Carried 6:0. 9. REPORT FROM DEPUTY COUNTY ATTORNEY TODD JENSON REGARDING NEIGHBOR ISLAND LIQUOR COMMISSIONS’ RESPONSES TO DIRECT TO CONSUMER SALES OF ALCOHOLIC BEVERAGES. Mr. Jenson prepared a Brief Report, and materials were submitted to all of the Commissioners. A report on the various counties: a. City & County of Honolulu b. County of Hawaii c. County of Maui The County of Maui reported that they did not receive a letter from Kōloa Rum, but a few days ago, Karilee Yoshizawa informed him that they received a letter from Koloa Rum and their department has not yet prepared a response to the letter. Vice Chair Kusaka asked should the Commission comment on that. Mr. Jenson advised you certainly can, he explained the report from the County of Hawai‘i’s response letter was sent to Koloa Rum in which they took an interesting position. For the County of Hawaii`s response, he does not agree with their legal interpretation, which is that the prohibition of Direct Consumer Sales only applies to out-of-state suppliers, which is a new interpretation. The Statute states the shipment of liquor from outside of the state. The concerns raised by the Liquor Control of Honolulu, were if the Governor could properly Liquor Control Commission Open Session August 20, 2020 Page 8 SUBJECT DISCUSSION ACTION suspend the prohibition of Direct Consumer Sales and also shared similar concerns of what was discussed last time in a previous Commission meeting. Whether or not Direct Consumer sales should be legalized or allowed is a legislative decision. This attempt to ask the Governor to make an Emergency Proclamation to suspend the prohibition circumvents the legislative process. In the past there have been numerous attempts over the years not only in Hawaii but Nationwide, to loosen regulations for Direct Consumer sales. Concerns raised: a. Wholesaler and distributors would be cut out of the process b. Collection of taxes c. Proper controls on the distribution of Liquor. Circumventing the Legislative process, the Legislature is given the authority over these type of Alcohol controls. These are the concerns which Honolulu had, and which were informally communicated to the Governor’s Office. There is no written response from the City and County of Honolulu. Mr. Nishimura moved to accept the Updated Report from Deputy County Attorney Todd Jenson regarding Neighbor Island Liquor Commission responses to Direct Consumer Sales of Alcoholic Beverages. Mr. Pacheco seconded the motion. Motion Carried 6:0 10. COMMUNICATION FROM KŌLOA RUM TO CHAIR AKITA. Communication from Kōloa Rum to Mayor Kawakami. Discussion and decision making regarding a response to Bob Gunter, Kōloa Rum and/or Governor Ige, regarding suspension of HRS and suspension of the prohibition of Direct To Consumer sales. Vice Chair Kusaka asked if there were any comments. Liquor Control Commission Open Session August 20, 2020 Page 9 SUBJECT DISCUSSION ACTION Commissioner Matsunaga stated his concern in regards to waiving the State Statute and feels that the Commission has no jurisdiction over the State Statute. The Commission has jurisdiction over the County of Kauai’s rules and regulations. He also stated the Commission has no authority to bend the rules not on the State level. Vice chair stated that the legislature process needs to happen before changing any rules and it is not in our jurisdiction. Do we direct the Director write a letter, how should we handle this? Commissioner Crowell stated Koloa Rum is looking for a letter of support for waiving the rules in which he does not feel comfortable in doing based on the City and Counties decision. Commissioner Matsunaga does not feel comfortable in supporting their request, this matter should be addressed by the Legislature and Governor as we have no jurisdiction over a State Statute. Acting Director Baliaris to draft a letter to Koloa Rum to neither support nor oppose Koloa Rum’s request, but instead suggest this matter should be resolved through the Legislative Process and through the Governor’s Office. Mr. Matsunaga moved to neither support nor oppose Koloa Rum’s request, this matter should be resolved through the Legislative Process or through the Governor’s Office. Mr. Pacheco seconded the motion. Motion carried 6:0 EXECUTIVE SESSION: Pursuant to Hawai'i Revised Statutes §§92-4 and 92-5 (a) (4) the purpose of this executive session is to consult with the Commission's legal counsel on questions and issues pertaining to the Commission's powers, duties, privileges, immunities, and liabilities as they may relate to this item, deliberate and take such action as appropriate. Liquor Control Commission Open Session August 20, 2020 Page 10 SUBJECT DISCUSSION ACTION Announcements Next Scheduled Meeting: Thursday, September 3, 2020 – 10:00 a.m., Teleconference Adjournment With no further business to conduct, Vice Chair Kusaka called for a motion and a second to adjourn the meeting. Mr. Pacheco moved to adjourn the Meeting. Mr. Crowell seconded the motion. Motion Carried 6:0 At 10:50 a.m. the meeting was adjourned. Submitted by: __________________________________ Reviewed and Approved by: _________________________________________ Malialani TM Kelekoma, Liquor Clerical Assistant Maryanne Kusaka, Vice Chair ( ) Approved as circulated. (X) Approved with amendments. See minutes of 09/20/2020 meeting.