HB1888

Report Title:

Liquor; Tobacco

Description:

Replaces existing county liquor commissions with a statewide commission and gives commission jurisdiction over licensure of retail sales of tobacco.

HOUSE OF REPRESENTATIVES	H.B. NO.	1888
TWENTY-FIRST LEGISLATURE, 2002
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO LIQUOR AND TOBACCO.

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

SECTION 1. Chapter 281, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"PART . TOBACCO PRODUCTS

§281-A Tobacco licenses, classes. (a) A tobacco license may be granted by the liquor commission as provided in this section. For purposes of this section, a tobacco license authorizes the importation or sale of tobacco products as defined in this chapter and chapter 245.

(b) Class 1. Wholesale tobacco dealer. A license for the sale of tobacco at wholesale authorizes the licensee to import and sell only to retail tobacco dealer licensees or others who are authorized by law to resell, but are not required to hold a license by law. Nothing in this subsection shall prevent a wholesaler from selling tobacco to post exchanges, ships' service stores, Army or Navy officers' clubs, or like organizations located on Army or Navy reservations, or to any vessel performing a regular water transportation service between any two or more ports in the State.

(c) Class 2. Retail tobacco dealer. A license under this class authorizes the dealer to sell tobacco products at retail. The retail tobacco dealer licensee shall be responsible for providing a training program to all employees that shall include training in the laws governing the sale of tobacco, methods for recognizing and handling underage customers, and procedures for proper identification to verify that customers are not underage.

(d) It shall be unlawful for any retail tobacco dealer licensee to purchase or acquire tobacco from any person other than a wholesale tobacco dealer licensed pursuant to this chapter. It shall be unlawful for any retail tobacco dealer to offer or sell tobacco products from vending machines, except that the sale of tobacco products from vending machines may be permitted in an on-premises liquor licensed establishment pursuant to section 328K-7.

§281-B Application; tobacco licenses. (a) Every application for a tobacco license or the renewal of a tobacco license shall be in writing and signed by the applicant, by the proper officer or officers of a corporation or unincorporated association, or by a general partner of a partnership, or other official of a legal entity responsible for the application. The application shall be addressed to the liquor commission and shall include:

(1) (A) For an individual, the full name, age, and place of residence of the applicant;

(B) For a corporation or joint-stock company, its full name and the names of its officers and directors;

(D) For any other association of individuals or other legal entity, the names, ages, and respective places of residence of its officers or members;

(2) A particular description of the place or premises where the proposed license is to be exercised, so that the exact location and extent thereof may be clearly and definitely determined therefrom; provided that if the applicant has or intends to have more than one place of business dealing with cigarettes or tobacco, a separate application shall be made for each place of business; and provided further that no application for a retail tobacco dealer license shall be accepted from a person who conducts business from a vehicle;

(3) The class of license applied for; and

(4) Any other information pertinent to the subject matter that may be required by the rules of the commission.

(b) An application for a tobacco license may be granted without notice or hearing by the liquor commission pursuant to commission rules. The license shall be posted on the premises of the place identified in the application in a conspicuous place for public viewing.

(c) A tobacco license shall be valid for a term beginning July 1 through June 30 of the following year and shall be subject to renewal pursuant to commission rules; provided that no license shall be transferable.

§281-C Prohibitions; tobacco licensee. (a) At no time under any circumstances shall any tobacco licensee or its employees sell or furnish any tobacco to:

(1) A minor; or

(2) Any person over the age of eighteen for distribution to or use by a minor.

(b) Any person who violates this section or any rule adopted by the commission pursuant to this part shall be guilty of a violation for each separate offense. Each occurrence of violation shall constitute a separate offense.

§281-D Prohibitions involving minors, cigarettes, tobacco; liquor commission; penalty. (a) No minor shall purchase cigarettes or tobacco.

(b) Subsection (a) shall not apply if a person under the age of eighteen, with parental authorization, is participating in a controlled purchase as part of a law enforcement activity or a study authorized by the department of health to determine the level of incidence of tobacco sales to minors.

(d) No minor shall possess cigarettes or tobacco under a retail tobacco dealer's license except that custody of cigarettes or tobacco by the minor may be permitted in the course of delivery pursuant to the direction of the minor's employer lawfully engaged in business necessitating the delivery.

(e) No minor shall falsify any identification or use any false identification or identification of another person or of a fictitious person for the purpose of buying or attempting to buy cigarettes or tobacco.

(f) No minor shall be permitted to sell cigarettes or tobacco.

(g) A minor who violates this section shall be subject to the jurisdiction of the liquor commission which may issue citations to those persons for referral and disposition by the family court.

§281-E Prohibitions involving minors, cigarettes, tobacco; public places; penalty. (a) No person age eighteen or older shall purchase cigarettes or tobacco for use by, or offer or distribute cigarettes or tobacco to, a minor.

(b) Any person age eighteen or older who violates subsection (a) shall be guilty of a petty misdemeanor.

§281-F Fines collected. Fines collected pursuant to this part shall be transferred to the special fund created under section 281-G.

§281-G Liquor commission special fund; established. (a) There is established in the state treasury the liquor commission special fund, into which shall be deposited the fees, fines, forfeitures, and any other funds collected or received under this chapter.

(b) Moneys in the special fund shall be used to implement the powers and duties of the liquor commission."

SECTION 2. Title 16, Hawaii Revised Statutes, is amended by amending its title to read as follows:

"TITLE 16. INTOXICATING LIQUOR AND TOBACCO PRODUCTS"

SECTION 3. Chapter 281, Hawaii Revised Statutes, is amended by amending its title to read as follows:

"CHAPTER 281

INTOXICATING LIQUOR AND TOBACCO PRODUCTS"

SECTION 4. Section 281-1, Hawaii Revised Statutes, is amended by:

1. Adding three new definitions to be appropriately inserted and to read as follows:

""Cigarettes" means any roll for smoking made wholly or in part of tobacco, irrespective of size or shape and regardless of whether the tobacco is flavored, adulterated, or mixed with any other ingredient, the wrapper or cover of which is made of paper or any other substance or material except tobacco.

"Cigarette vending machine" means a self-service device that dispenses cigarettes, cigars, tobacco, or any other product containing tobacco.

"Tobacco" or "tobacco products" means products made from tobacco leaves in any form that are prepared or intended for consumption by, or the personal use of, humans, including cigarettes, cigars, and any other substitutes bearing the semblance thereof; cheroots; stogies; periques; granulated, plug cut, crimp cut, ready rubbed, and other smoking tobacco; snuff or snuff flour; cavendish; plug and twist tobacco; fine cut and other chewing tobaccos; shorts; refuse scraps, clippings, cuttings, and sweepings of tobacco, and other kinds and forms of tobacco, prepared in a manner as to be suitable for chewing or smoking in a pipe or otherwise, or both for chewing and smoking."

2. By amending the definition of "commission" to read:

""Commission" means the state liquor commission [~~for the county within which such commission has jurisdiction under this chapter~~]."

3. By repealing the definitions of "county" and "elected executive head".

[""County" means the county in respect of which each commission has jurisdiction under this chapter; provided that in the county of Kalawao liquor may be sold only by such persons and only under such conditions as may be permitted or prescribed from time to time by the department of health.

~~"Elected executive head" means the mayor of each county or the mayor's duly appointed or elected successor.~~"]

4. By amending the definition of "investigator" to read:

""Investigator" means any investigator of the commission [~~in each case for the county wherein the commission has jurisdiction~~]."

5. By repealing the definition of "liquor control adjudication board".

["~~"Liquor control adjudication board" or "board" means a board established by county charter, within a county, that shall~~ ~~have the jurisdiction to hear and determine complaints or violations of liquor laws and to impose penalties as may be provided in this chapter.~~"]

6. By amending the definition of "minor" to read:

""Minor" means any person below the age of twenty-one years[.]; provided that, where applicable to tobacco as provided in this chapter, minor means any person under the age of eighteen."

7. By repealing the definition of "regulation".

["~~"Regulation" means any regulation prescribed by the commission with the approval of the elected executive head of the county for carrying out this chapter.~~"]

8. By amending the definition of "retail license", "sell" or "to sell", and "seller" to read:

""Retail licensee" means any licensee holding a class 2 or class 4 through class 14 liquor license[.] and class 2 license under section 281-A, related to its retail operation.

"Sell" or "to sell" includes: to solicit and receive an order for; to have or keep or offer or expose for sale; to deliver for value or in any other way than purely gratuitously; to peddle; to keep with intent to sell; to traffic in; and the word "sale" includes every act of selling as [~~herein~~] defined[.] in this chapter. Notwithstanding the provisions above, the delivery of liquor or tobacco by a licensee's vehicle or the vehicle of a licensee's agent shall be deemed delivery for value.

"Seller" includes the agents and employees of a seller; provided that any person shall be deemed to be a seller, who in the State, whether acting as agent or representative of a nonresident principal or otherwise, solicits the placing of or takes, receives, or forwards orders for liquor or tobacco to be shipped into the State from any place without the State to be delivered to customers, by direct shipment or otherwise."

SECTION 5. Section 281-3, Hawaii Revised Statutes, is amended to read as follows:

"§281-3 Illegal manufacture, importation, or sale of liquor[.] and tobacco. (a) It shall be unlawful for any person not having a valid license to manufacture or sell any liquor except as otherwise provided in this chapter; provided that the head of any family may produce for family use and not for sale an amount of wine not exceeding two hundred gallons a year, and an amount of beer not exceeding one hundred gallons a year.

(b) It shall [~~also~~] be unlawful for any person [~~not having~~] who does not have a valid wholesale license or a valid manufacturer's (including rectifier's) license, to import any liquor from without the State, except as otherwise provided in this chapter. Liquor imported into this State shall come to rest at the warehouse of the manufacturer (including rectifier) or the wholesaler importing the liquor, shall be unloaded into [~~such~~] the warehouse, and shall be held in [~~such~~] the warehouse for at least forty-eight hours before further sale by [~~such~~] the manufacturer (including rectifier) or wholesaler.

(c) It shall [~~also~~] be unlawful for any person to label, designate, or sell any liquor using the [~~word~~] words "Hawaii", "Hawaiian", "Aloha State", "50th State", "Kauai", "Maui", "Oahu", or "Honolulu" unless [~~such~~] the liquor is wholly or partially manufactured in the State, and all of the primary ingredients are wholly rectified or combined in the State [~~of Hawaii~~] in compliance with the Bureau of Alcohol, Tobacco and Firearms standards.

(d) It shall be unlawful for any person who does not have a valid retail tobacco dealer license to sell any tobacco product at retail except as provided in this chapter.

(e) It shall be unlawful for any person who does not have a valid wholesale tobacco dealer license to import any tobacco product from without the State, and sell to retail tobacco dealer licensees except as provided in this chapter.

(f) A license shall constitute authority for the licensee to sell only the liquor or tobacco thereby authorized to be sold by the licensee.

(g) The commission shall establish minimum standards by rule under which the commission shall suspend or revoke a license."

SECTION 6. Section 281-11, Hawaii Revised Statutes, is amended to read as follows:

"§281-11 [~~County liquor commissions and liquor control adjudication boards;~~] Liquor commission; qualifications; compensation. (a) A state liquor commission [~~or liquor control adjudication board~~], consisting of not less than five members, no more than the minimum required for a quorum of whom shall belong to the same political party at the time of appointment, [~~may be created for each of the counties.~~] shall be established within the department of health. The [~~elected executive head of each county may~~] governor shall nominate, and by and with the advice and consent of the [~~legislative body of the county,~~] senate, shall appoint the members of the [~~commissions and boards.~~] commission. The [~~elected executive head of each county,~~] governor, by and with the advice and consent of the [~~legislative body of the county,~~] senate, may remove from office any of the members. The commission [~~or board~~] shall designate one of its members as chairperson. Each member shall be a citizen of the United States and shall have resided in the [~~county for which appointed~~] State for at least three years immediately preceding the date of the member's appointment.

(b) Upon the expiration of the term of each commissioner [~~or board member~~], the commissioner's [~~or board member's~~] successor shall be appointed for a term to expire five years from the date of the expiration of the preceding term.

The tenure in office of every commissioner [~~or board member~~] shall be for the terms provided and until their successors are duly appointed and qualified.

Any vacancy shall be filled by appointment for the remainder of the unexpired term. No person shall be a member of any commission [~~or board~~] who is or becomes engaged, or is directly or indirectly interested in any business for the manufacture or sale of liquor or who advocates or is or becomes a member of, or is identified or connected with, any organization or association which advocates prohibition, or who is an elected officer of the state or county government or who presents oneself as a candidate for election to any public office during the term of the person's appointment hereunder. This provision shall be enforced by the [~~elected executive head of the county~~] governor by the removal of the disqualified member whenever such disqualifications shall appear.

(c) [~~The amount of compensation and~~] Members shall be reimbursed for all reasonable expenses for travel and other costs necessarily incident to the discharge of the members' duties [~~shall be established by each county~~].

(d) Each member of the commission [~~or board~~], before entering upon the duties of the member's office, shall take and subscribe to an oath that the member will faithfully perform such duties according to law, which written oath shall be filed with the [~~elected executive head of each county.~~] governor.

(e) The liquor commissions of the respective counties shall cease to exist on the effective date of this Act."

SECTION 7. Section 281-11.5, Hawaii Revised Statutes, is amended to read as follows:

"§281-11.5 Liquor commission [~~and board~~] attorney. The liquor commission [~~or liquor control adjudication board~~] may hire attorneys to assist it in carrying out its administrative functions under this chapter. The assistance may include providing legal advice and prosecuting and defending legal claims under this chapter or arising in connection with this chapter."

SECTION 8. Section 281-13, Hawaii Revised Statutes, is amended to read as follows:

"§281-13 Meetings. Meetings of the liquor commission [~~or the liquor control adjudication board~~] may be held at any time and as often from time to time as the commission [~~or board~~] deems necessary for the proper transaction of its business, upon call of the chairperson or by any other two members of the commission [~~or board~~]. The administrator shall give notice of the meetings as the commission [~~or board~~] may prescribe to the several members, and give any other notice thereof directed by the commission [~~or board~~].

A majority of all the members of the commission [~~or board~~] shall constitute a quorum for the transaction of business, but the affirmative vote of a majority of all of the members shall be necessary to determine any matter before it."

SECTION 9. Section 281-14, Hawaii Revised Statutes, is amended to read as follows:

"§281-14 Records. The liquor commission [~~and liquor control adjudication board~~] shall ensure that complete records are kept of all commission [~~and board~~] meetings, proceedings, and acts with reference to all business pertaining to licenses issued, suspended, and revoked, moneys received as license fees and otherwise, and disbursements by the commission [~~or board~~] or under its authority. Unless otherwise prohibited by law, these records shall be open for examination by the public. The records may be destroyed as provided in section 46-43."

SECTION 10. Section 281-15, Hawaii Revised Statutes, is amended to read as follows:

"§281-15 Reports, accounts, audit. On or before September 30 of each year the chairperson of the liquor commission shall submit to the [~~elected executive head of the county~~] governor and the legislature a full report upon the business and operations of the commission during the preceding year, [~~which year shall be coterminous with the fiscal year of the county,~~] with such other matters of information and comment as the [~~elected executive head~~] governor may deem appropriate. [~~The elected executive head shall furnish copies thereof to the legislative body of the county and to the fiscal officer of the county.~~

~~The accounts of the commissions for the several counties shall be regularly examined by the fiscal officer who shall report thereon in writing to the legislative body of the several counties.~~]"

SECTION 11. Section 281-16, Hawaii Revised Statutes, is amended to read as follows:

"§281-16 [~~County liquor~~] Liquor commission [~~and liquor control adjudication board~~] funds; disposition of realization; payment of expenses. All fees and other moneys collected or received by [~~each~~] the liquor commission [~~or liquor control adjudication board~~] under this chapter shall be paid not less than weekly into the [~~general fund of the respective county or a special fund as provided by ordinance.~~] special fund established under section 281-G. All expenses of the commission [~~or board~~], including any expenses and compensation of its members and expenses and salaries of its subordinates, shall be paid in the manner provided by [~~ordinance.~~] statute."

SECTION 12. Section 281-17, Hawaii Revised Statutes, is amended to read as follows:

"§281-17 Jurisdiction and powers. (a) The liquor commission[~~, within its own county,~~] shall have the sole jurisdiction, power, authority, and discretion, subject only to this chapter:

(1) To grant, refuse, suspend, and revoke any licenses for the manufacture, importation, and sale of liquors[;] or the importation and sale of tobacco;

(2) To take appropriate action against a person who, directly or indirectly, manufactures or sells any liquor or imports or sells tobacco without being authorized pursuant to this chapter; [provided that in counties which have established by charter a liquor control adjudication board, the board shall have the jurisdiction, power, authority, and discretion to hear and determine administrative complaints of the director regarding violations of the liquor laws of the State or of the rules of the liquor commission, and impose penalties [for] violations thereof as may be provided by law;]

(3) To control, supervise, and regulate the manufacture, importation, and sale of liquors or the importation and sale of tobacco by investigation, enforcement, and education; provided that [~~any~~]:

(A) Any educational program shall be [~~limited to~~] coordinated with the department of health, the commission's staff, licensees, and their employees; and

(B) Liquor education programs shall be financed through the money collected from the assessment of fines against liquor licensees;

(4) [~~From time to time to make, amend, and repeal such~~] To adopt rules[,] under chapter 91, not inconsistent with this chapter, as in the judgment of the commission seem appropriate for carrying out this chapter and for the efficient administration thereof, and the proper conduct of the business of all licensees, including every matter or thing required to be done or which may be done with the approval or consent or by order or under the direction or supervision of or as prescribed by the commission; [~~which rules, when adopted as provided in chapter 91 shall have the force and effect of law;~~]

(5) Subject to chapter 76, to appoint and remove an administrator, who may also be appointed an investigator and who shall be responsible for the operations and activities of the staff. The administrator may hire and remove hearing officers, investigators, and clerical or other assistants as its business may from time to time require, to prescribe their duties, and fix their compensation; to engage the services of experts and persons engaged in the practice of a profession, if deemed expedient. Every investigator, within the scope of the investigator's duties, shall have the powers of a police officer. No employee of any commission, aside from exercising the right to vote, shall support, advocate, or aid in the election or defeat of any candidate for public office, and upon satisfactory proof of such prohibited activity the offender shall be summarily dismissed;

(6) To limit the number of licenses of any class or kind within the county, or the number of licenses of any class or kind to do business in any given locality, when in the judgment of the commission such limitations are in the public interest;

(7) To prescribe the nature of the proof to be furnished, the notices to be given, and the conditions to be met or observed in case of the issuance of a duplicate license in place of one alleged to have been lost or destroyed, including a requirement of any indemnity deemed appropriate to the case;

(8) To fix the hours between which licensed premises of any class or classes may regularly be open for the transaction of business, which shall be uniform throughout the county as to each class respectively;

(9) To prescribe all forms to be used for the purposes of this chapter not otherwise provided for in this chapter, and the character and manner of keeping of books, records, and accounts to be kept by licensees in any matter pertaining to their business;

(10) To investigate violations of this chapter, chapter 244D or 245, and, notwithstanding any law to the contrary, violations of the applicable department of health's allowable noise levels, through its investigators or otherwise, to include covert operations, and to report violations to the prosecuting officer for prosecution and, where appropriate, the director of taxation to hear and determine complaints against any licensee;

(11) To prescribe, by rule, the terms, conditions, and circumstances under which persons or any class of persons may be employed by holders of licenses;

(12) To prescribe, by rule, the term of any license or solicitor's and representative's permit authorized by this chapter, the annual or prorated amount, the manner of payment of fees for the licenses and permits, and the amount of filing fees; and

(13) To prescribe, by rule, the circumstances and penalty for the unauthorized manufacturing or selling of any liquor[.] or the unauthorized importation or sale of any tobacco.

(b) Subject only to this chapter, the commission [~~or board~~] and each member thereof shall have the same powers respecting the administering of oaths, compelling the attendance of witnesses and the production of documentary evidence, and examining the witnesses as are possessed by a circuit court, except that the commission or board and each member thereof shall not be bound by the strict legal rules of evidence. In addition, the commission [~~or board~~] shall have the power to require the production of, and to examine any books, papers, and records of any licensee [~~which~~] that may pertain to the licensee's business under the license or [~~which~~] that may pertain to a matter at a hearing before the commission [~~or board~~] or to an investigation by the commission [~~or board~~].

(c) The exercise by the commission [~~or board~~] of the power, authority, and discretion vested in it pursuant to this chapter shall be final and shall not be reviewable by or appealable to any court or tribunal, except as otherwise provided in this chapter or chapter 91."

SECTION 13. Section 281-17.5, Hawaii Revised Statutes, is amended to read as follows:

"§281-17.5 Fees; justified, method of change, limitation. (a) Any liquor or tobacco license fee or any increase in an existing liquor or tobacco license fee sought to be implemented by [~~any~~] the commission shall have, as its justification, a direct and proportionate relationship to costs and expenses of the commission in its control, supervision, or regulation of the manufacture, importation, and sale of liquors, or the importation and sale of cigarettes or tobacco, or otherwise directly relate to actual costs and expenses of administration of the commission as is set forth in this chapter.

(b) Any such [~~liquor~~] license fees or any moneys collected or received by [~~any~~] the liquor commission under this chapter may only be used for costs and expenses directly relating to operational and administrative costs actually incurred by the liquor commission in collecting or receiving [~~such liquor~~] license fees or moneys. [~~Such~~] The fees or moneys shall not be used for any costs or expenses other than those directly relating to its operation and administration.

[~~(c) Any increase in the liquor license fee structure shall only be initiated by the liquor commission seeking the change with the approval of the county's legislative body and mayor.~~

~~(d) Any~~] (c) If the liquor commission [~~seeking~~] seeks a change in [~~liquor~~] license fee structure, it shall notify all licensees under this chapter affected by [~~the change of~~] the proposed change and shall notify each [~~such~~] licensee of the outcome and resolution of the change.

[~~(e) Any~~] (d) If the liquor commission [~~which~~] currently receives a license fee from a licensee in excess of the amount prescribed by this section, it shall immediately revise its [~~liquor~~] license fee structure to conform with the requirements of this section. All liquor license fees and all tobacco license fees shall be maintained in separate accounts within the special fund. Any funds in excess of twenty per cent of the commission's current budget shall be returned or credited annually to existing licensees."

SECTION 14. Section 281-19, Hawaii Revised Statutes, is amended to read as follows:

"§281-19 Hearings, attendance, examinations. If any person subpoenaed as a witness to attend before the liquor commission [~~or liquor control adjudication board~~], or to produce any books, papers, or records called for by the process of the commission [~~or board~~], fails or refuses to respond thereto, or refuses to answer questions propounded by any member of the commission [~~or board~~] or its counsel material to the matter pending before the commission [~~or board~~], the circuit court of the circuit within which the licensed premises involved are situated, upon request of the commission [~~or board~~], shall have power to compel obedience to any process of the commission [~~or board~~] and require the witness to answer questions put to the witness, and to punish, as a contempt of the court, any refusal to comply therewith without good cause shown therefor.

False swearing by any witness before the commission [~~or board~~], shall constitute perjury and be punished as such, and whenever the commission [~~or board~~] is satisfied that a witness has sworn falsely in any hearing or investigation before the commission [~~or board~~], it shall report the same to the prosecuting officer for prosecution."

SECTION 15. Section 281-20, Hawaii Revised Statutes, is amended to read as follows:

"§281-20 General right of inspection. Any investigator [~~may~~], at all times, without notice and without any search warrant or other legal process, may visit and have immediate access to every part of the premises of every liquor and tobacco licensee, for the purpose of making any examination or inspection thereof or inquiry into the books and records therein, to ascertain whether all of the conditions of the license and all provisions of this chapter and chapter 244D or 245 are being complied with by the licensee."

SECTION 16. Section 281-21, Hawaii Revised Statutes, is amended to read as follows:

"§281-21 Service of subpoenas by investigators, police officers, or other law enforcement officers; witnesses' fees. Any investigator, police officer, or other law enforcement officer may serve any subpoena issued by the liquor commission [~~or liquor control adjudication board~~].

Every witness attending or testifying at any hearing of the commission [~~or board~~] in response to a subpoena issued by it shall be paid as provided for in section 621-7. If a witness is subpoenaed by direction of the commission [~~or board~~], the witness' fees shall be paid out of any funds which may be set aside for the expenses of the commission [~~or board~~] and, if the witness is subpoenaed on behalf of any interested party, the witness' fees shall be paid by that party."

SECTION 17. Section 281-31, Hawaii Revised Statutes, is amended to read as follows:

1. By amending subsection (d) to read:

"(d) Class 3. Wholesale dealers' licenses. A license for the sale of liquors at wholesale shall authorize the licensee to import and sell only to licensees or to others who are by law authorized to resell but are not by law required to hold a license, the liquors therein specified in quantities not less than five gallons at one time if sold from or in bulk containers or not less than one gallon if bottled goods; provided that samples of liquor may be sold back to the manufacturer. The license may authorize the licensee to sell draught beer in quantities not less than five gallons at one time to any person for private use and consumption if the licensee files an affidavit with the commission that there is not a class 4 retail dealers licensee available to sell the wholesalers brand of draught beer. Under the license no liquor shall be consumed on the premises except as authorized by the commission. Of this class, there shall be the following kinds:

(1) General (includes all liquors except alcohol);

(2) Beer and wine; and

(3) Alcohol.

[If any wholesale dealer solicits or takes any orders in any county other than that where the dealer's place of business is located, the orders may be filled only by shipment direct from the county in which the wholesale dealer has the dealer's license.] Nothing in this subsection shall prevent a wholesaler from selling liquors to post exchanges, ships service stores, army or navy officers' clubs, or like organizations located on army or navy reservations, or to any vessel other than vessels performing a regular water transportation service between any two or more ports in the State, or to aviation companies who operate an aerial transportation enterprise as a common carrier, under chapter 269, engaged in regular flight passenger services between any two or more airports in the State for use on aircraft, or aviation companies engaged in transpacific flight operations for use on aircraft outside the jurisdiction of the State."

2. By amending subsections (h), (i), and (j) to read:

"(h) Class 7. Vessel licenses. A general license may be granted to the owner of any vessel performing a regular water transportation passenger service between any two or more ports in the State for the sale of liquor (other than alcohol) on board the vessel while in the waters of the State; provided the sales are made only while the vessel is en route, and only for consumption by passengers on board. If the [~~vessel has a home port in the State the license shall be issuable in the county in which the home port is situated; provided that if the~~] licensee's home port is not situated in this State, the license shall be issuable in the city and county of Honolulu. If on any vessel for which no license has been obtained under this chapter any liquor is sold or served within three miles of the shore of any island of the State the same shall constitute a violation of this chapter.

(i) Class 8. Transient vessel licenses. A general license may be granted to the owner of any vessel that does not fall within class 7 for the sale of liquor (other than alcohol) on board the vessel while in any port of the State. Sales shall be made only for consumption by passengers and their guests on board the vessel. [~~The license shall be issuable in each county~~ ~~where the sales are to be made; provided that the application for the license may be made by any agent representing the owner.~~]

(j) Class 9. Tour or cruise vessel licenses. A general license may be granted to the owner of any tour or cruise vessel for the sale of liquor (other than alcohol) on board the vessel while in the waters of the State; provided that sales be made only for consumption by passengers on board while the vessel is in operation outside the port or dock of any island of the State, unless otherwise approved by the county where the license has been issued. If [~~the vessel has a home port in the State, the license shall be issuable in the county wherein the home port is situated; provided that if~~] the licensee's home port is not situated in this State, the license shall be issuable in the city and county of Honolulu. If on any vessel for which no license has been obtained under this chapter any liquor is sold or served within three miles of the shore of any island of the State, the same shall constitute a violation of this chapter."

SECTION 18. Section 281-33.5, Hawaii Revised Statutes, is amended to read as follows:

"[[]§281-33.5[]] Reciprocal shipments of wine. Notwithstanding any other law to the contrary, the holder of a license to manufacture wine in another state that affords holders of a class 1 license to manufacture wine under section 281-31 an equal reciprocal shipping privilege, may ship for personal use and not for resale not more than two cases of wine of its own manufacture per year, with each case containing not more than nine liters, to any resident twenty-one years of age or older. Out-of-state wine manufacturers that are authorized to ship wine under this section shall submit, to the [~~appropriate~~] liquor commission, a shipping invoice for each delivery into this State. Delivery of a shipment into this State under this section shall not be deemed to constitute a sale in this State."

SECTION 19. Section 281-39, Hawaii Revised Statutes, is amended to read as follows:

"§281-39 Place of business; exception; solicitors' and representatives' permits. A license issued under this chapter shall authorize the doing of the business licensed only at the place described in the license, which shall be known as the licensed premises, except in case of a removal with the prior written consent of the liquor commission indorsed on the license, or outside warehousing which may be located off the licensed premises with prior written consent of the liquor commission. No change of premises under any issued license shall be allowed unless the doing of business on the new premises is authorized in the same manner as provided by this chapter for approval of any original premises[; provided that the holder of any manufacturer's license or a wholesale dealer's license issued by the commission of any county may, through authorized solicitors or representatives, solicit and take orders for direct shipment for liquor in permitted quantities in any other county].

Any person desiring to act as the authorized solicitor or representative of a manufacturer or wholesale dealer [~~in any~~ ~~county~~] shall make application to the commission [~~of such county in which the person proposes to act for a permit to act as such~~].

The application shall state the name of the applicant, the applicant's age, residence, and place of business, the name and address of the manufacturer or wholesale dealer the applicant represents and shall be accompanied by a statement from the manufacturer or wholesale dealer to the effect that the applicant has been appointed as its solicitor or representative. All sales and all orders taken for liquor by any such solicitor or representative shall be subject to the rules [~~and regulations~~] of the commission [~~for the county within which the sales are made or orders taken~~].

No such solicitor or representative shall be permitted to have, own, or control any liquor for sale."

SECTION 20. Section 281-39.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The liquor commission [~~or agency of each county~~] may deny or restrict the issuance of a liquor license for on-site sale and consumption by the drink to any applicant whose establishment is or would be located within five hundred feet of a public or private elementary, intermediate, or high school, or public playground utilized extensively by minors, as determined by the liquor commission [~~of each county~~]; provided that the liquor commission [~~or agency of each county~~] shall deny the issuance of a liquor license if forty per cent of the:

(1) Registered voters for the area within five hundred feet of the nearest point of the premises for which the license is asked; or

(2) Owners and lessees of record of real estate and owners of record of shares in a cooperative apartment within five hundred feet of the nearest point of the premises for which the license is asked;

have duly filed or caused to be filed their protests against granting the license. The distance of five hundred feet shall be measured from the boundary of the school or public playground to the boundary of the applicant's premises. Public or private beaches, and public or private day care centers located in or adjacent to commercial areas shall not be deemed schools or public playgrounds for purposes of this section. The provisions of this section shall not apply to establishments located within areas designated by the appropriate counties for resort purposes, or to hotel liquor license applicants."

SECTION 21. Section 281-41, Hawaii Revised Statutes, is amended to read as follows:

"§281-41 Transfer of licenses; notice of change in officers, directors, and stockholders of corporate licenses, partners of a partnership license, and members of a limited liability company license; penalty. No license issued under this chapter to an original applicant or to any transferee shall be transferable or be transferred within one year of such issuance or transfer except for good cause shown to the satisfaction of the liquor commission. No license issued under this chapter shall be transferable or be transferred except upon written application to the commission by the proposed transferee, and after prior inspection of the premises, reference to, and report by an inspector, and a public hearing held by the commission not less than fourteen days after one publication of notice thereof, but without sending notice of the hearing by mail to persons being the owners or lessees of real estate situated within the vicinity of the premises and without the right to such owners or lessees to protest the transfer of a license. Exceptions are class 5 and 11 licensees who must comply with the notice requirements as set forth in section 281-57. No class 5 or 12 license issued to a standard bar as defined in section 281-1, shall be transferable to other than a standard bar, and that such license shall be subject to revocation if the licensed premises is not retained as a standard bar except upon written application to the commission by the licensee and/or the proposed transferee, subject to sections 281-51 to 281-60.

[~~A county~~] The commission may increase the requirements for transfers of class 5, category (2) and (4), and class 11 licenses by [~~ordinance~~] rule designating one or more areas within the [~~county~~] State as special liquor districts and specifying the requirements applicable to transfers of any of these licenses within each district.

For the purpose of this section, "special liquor district" means an area designated by [~~a county~~] the commission for restoration, reservation, redevelopment, or rejuvenation, in which development is guided to protect or enhance the physical and visual aspects of the area for the benefit of the community as a whole.

Where a license is held by a partnership, the commission may, notwithstanding this section, transfer the license upon the death or withdrawal of a member of the partnership to any remaining partner or partners without publication of notice and without public hearing.

Where a license is held by a limited partnership or a limited liability company, the admission or withdrawal of a limited partner or a member of the limited liability company shall not be deemed a transfer of the license held by the partnership or limited liability company, but the licensee shall, prior to such admission or withdrawal, so notify the commission in writing, stating the name of the partner, partners, member, or members who have withdrawn, if such be the case, and the name, age, and place of residence of the partner, partners, member, or members who have been admitted, if that be the case. If the commission finds a limited partner or a member to be an unfit or improper person to hold a license in the limited partner's or member's own right pursuant to section 281-45, it may revoke the license or suspend the license of the partnership or the limited liability company until the unfit or improper partner or member is removed or replaced.

Except as otherwise provided in this section, the same procedure shall be followed in regard to the transfer of a license as is prescribed by this chapter for obtaining a license. Sections 281-51 to 281-60, except where inconsistent with any provision hereof, are hereby made applicable to such transfers. The word "applicant", as used in such sections, shall include each such proposed transferee, and the words, "application for a license or for the renewal of a license", as used in such sections, shall include an application for the transfer of a license.

Upon the hearing, the commission shall consider the application and any objections to the granting thereof, and hear the parties in interest. It shall inquire into the propriety of each transfer and determine whether the proposed transferee is a fit person to hold the license. It may approve a transfer or refuse to approve a transfer, and the refusal by the commission to approve a transfer shall be final and conclusive, unless an appeal is taken as provided in chapter 91.

If any licensee without such approval transfers to any other person the licensee's business for which the licensee's license was issued, either openly or under any undisclosed arrangement whereby any person other than the licensee comes into possession or control of the business, or takes in any partner or associate the commission may in its discretion suspend or cancel the license.

If the licensee is a corporation, a change in ownership of any outstanding capital stock shall not be deemed a transfer of a license; provided that in the case of a change in ownership of twenty-five per cent or more of the stock or in the case of change in ownership of any number of shares of the stock which results in the transferee thereof becoming the owner of twenty-five per cent or more of the outstanding capital stock, the corporate licensee shall, prior to the date of such transfer, apply for and secure the approval of the transfer from the commission in writing. If the commission finds that the proposed transferee is an unfit or improper person to hold a license in the proposed transferee's own right pursuant to section 281-45, it shall not approve the proposed transfer. If any transfer is made without the prior approval of the commission, the commission may in its discretion revoke or suspend the license until it determines that the transferee is a fit and proper person, and if the commission finds that the transferee is not a fit and proper person, until a retransfer or new transfer of the capital stock is made to a fit and proper person pursuant to section 281-45. In addition, the corporate licensee shall, within thirty days from the date of election of any officer or director, notify the commission in writing of the name, age, and place of residence of such officer or director. If the commission finds the transferee, officer, or director an unfit or improper person to hold a license in the transferee's, officer's, or director's own right pursuant to section 281-45, it may in its discretion revoke the license or suspend the license until a retransfer or new transfer of such capital stock is effected to a fit or proper person pursuant to section 281-45 or until the unfit or improper officer or director is removed or replaced by a fit and proper person pursuant to section 281-45.

If a licensee closes out the business for which the license is held, during the term for which the license was issued, the licensee shall, within five days from the date of closing the same, give the commission written notice thereof and surrender the licensee's license for cancellation."

SECTION 22. Section 281-54, Hawaii Revised Statutes, is amended to read as follows:

"§281-54 Filing fees with application. A filing fee in such amount as shall be established by the [~~respective~~] liquor commission shall be paid with any application for an initial issuance of a license or for a transfer of a license.

Where a license is granted, the filing fee deposited with the application shall become part payment of the fee required for such license. Where an application is denied or withdrawn, the filing fee paid shall become a realization of the [~~county.~~] State."

SECTION 23. Section 281-61, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Other than for good cause, the renewal of an existing license shall be granted upon the filing of an application; provided that if:

(1) Complaints from the public;

(2) Reports from the commission's investigators; or

(3) Adjudications of the commission [~~or the liquor control adjudication board~~],

indicate that noise created by patrons departing from the premises disturbs residents on the street or of the neighborhood in which the premises are located, or that noise from the premises or adjacent related outdoor areas under the licensee's control such as parking lots or lanais exceed standards contained in state or county noise codes and intrudes into nearby residential units, the commission may withhold the issuance of a renewed license until corrective measures meeting the commission's approval are taken."

SECTION 24. Section 281-71, Hawaii Revised Statutes, is amended to read as follows:

"§281-71 Posting of license. Every license issued and in effect under this chapter shall at all times be conspicuously posted and exposed to view, convenient for inspection, on the licensed premises. For failure thereof the license may be suspended or revoked by the liquor commission [~~or liquor control adjudication board~~]."

SECTION 25. Section 281-79, Hawaii Revised Statutes, is amended to read as follows:

"§281-79 Entry for examination; obstructing liquor commission operations; penalty. (a) Every investigator shall, and any officer having police power may, at all reasonable times, and at any time whatsoever if there is any reasonable ground for suspicion that the conditions of any liquor or tobacco license are being violated, without warrant, enter into and upon any licensed premises and inspect the [~~same~~] premises and every part thereof, and any books or records therein, to ascertain whether [~~or not~~] all conditions of the license and all provisions of this chapter and chapter 244D or 245 are being complied with by the licensee.

(b) If any investigator or officer, or any person called by the investigator or officer to the investigator's or officer's aid, is threatened with the use of violence, force, or physical interference or obstacle, or is hindered, obstructed, or prevented by any licensee, the licensee's employees, or any other person from entering into [~~any such~~] the premises, or whenever any investigator or officer is [~~by any licensee, the licensee's employees, or any other person opposed,~~] obstructed[,] or molested in the performance of the officer's duty in any respect[,] by any licensee, the licensee's employees, or any other person, the licensee, the licensee's employee, or any other person shall be fined not more than $2,000 or imprisoned not more than one year, or both.

(c) Whenever any investigator or officer, having demanded admittance into any licensed premises and declared the investigator's or officer's name and office, is not admitted by the licensee or the person in charge of the premises, it shall be lawful for the investigator or officer to forcibly and in any manner to break into and enter the premises."

SECTION 26. Section 281-91, Hawaii Revised Statutes, is amended to read as follows:

"§281-91 Revocation or suspension of license; hearing. (a) The liquor commission [~~or liquor control adjudication board~~] may revoke any license at any time issued, or suspend the right of the licensee to use the licensee's license, or assess and collect a penalty, or reprimand the licensee, either for the violation of any condition of the license or of any provisions of this chapter or of any rule [~~or regulation~~] applicable thereto, or upon the conviction in a court of law of the licensee of any violation of this chapter or of any other law relative to the licensee's license or the proper exercise thereof, or of any violation of law in any other respect on account whereof the commission [~~or board~~] may deem the licensee to be an unfit or improper person to hold a license, or for any other cause deemed sufficient by the commission [~~or board~~].

(b) In every case where it is proposed to revoke or suspend the exercise of any license or assess and collect a penalty for any cause other than a conviction at law of the licensee as [~~above~~] specified[,] in subsection (a), the licensee shall be entitled to notice and hearing in conformity with chapter 91, the notice to be given at least five days before the hearing, except that any special license shall be subject to summary revocation for any violation of or evidence of intent to violate the proper exercise thereof, without hearing before the commission or board.

At the hearing, before final action is taken by the commission [~~or board~~], the licensee shall be entitled to be heard in person or through counsel and shall be given a full and fair opportunity to present any facts showing that the alleged cause or causes for the proposed action do not exist, or any reasons why no penalty should be imposed. The testimony taken at the hearing shall be under oath and recorded stenographically, or by machine, but the parties shall not be bound by the strict rules of evidence; certified copies of any transcript and of any other record made of or at the hearing shall be furnished to the licensee upon the licensee's request and at the licensee's expense.

(c) Any order of revocation, suspension, fine, or reprimand imposed by the commission [~~or board~~] upon the licensee shall be in addition to any penalty that might be imposed upon the licensee upon the licensee's conviction at law for any violation of this chapter. No licensee shall be subject to both the penalty assessed and collected by the commission [~~or board~~] and to revocation or suspension of license. The amount of penalty assessed and collected by the commission [~~or board~~] from any licensee for any particular offense shall not exceed the sum of $2,000.

Whenever the service of any order or notice shall be required by this section, the service shall be made in the following manner: in the case of any violation based upon the personal observation of any investigator, a written notice of the violation shall be given to the licensee or the licensee's registered manager in active charge of the premises, or by serving a certified copy of the notice or order upon the holder of the license wherever the holder may be found in the circuit wherein the holder is licensed, or, if the holder cannot be found after diligent search, by leaving a certified copy thereof at the holder's dwelling house or usual place of abode with some person of suitable age and discretion residing therein; and if the holder of the license cannot be found after diligent search, and service cannot be made, then service may be made by posting a certified copy of the notice or order in a conspicuous place on the licensed premises and depositing another certified copy thereof in the certified mail of the United States post office, postage prepaid, addressed to the holder of the license at the holder's last known residence address; provided that in the case of a partnership, corporation, unincorporated association, or limited liability company, service may be made upon any partner, officer, or member thereof."

SECTION 27. Section 281-92, Hawaii Revised Statutes, is amended to read as follows:

"§281-92 Appeals. Any licensee aggrieved by any order assessing, or providing for the collection of, a penalty or by any order suspending or revoking any license may appeal therefrom in the manner provided in chapter 91 to the circuit court of the circuit in which the [~~liquor commission or liquor control adjudication board making the order has jurisdiction~~] licensee has its place of business and the judgment of the court shall be subject to review by the supreme court subject to chapter 602."

SECTION 28. Section 281-94, Hawaii Revised Statutes, is amended to read as follows:

"§281-94 Forfeiture of fee paid. If any license is revoked and canceled by the liquor commission [~~or liquor control adjudication board~~], the fee paid for the license shall be forfeited to the [~~county~~] State as respects the unexpired portion of the fee paid for the license."

SECTION 29. Section 281-97, Hawaii Revised Statutes, is amended to read as follows:

"§281-97 When sale without license authorized. (a) In case a liquor or tobacco license is revoked [or], canceled, or not renewed, the licensee [~~may~~], with the permission of and upon the conditions set by the liquor commission, may sell intoxicating liquors or tobacco then in the licensee's possession within sixty days, or within such additional time allowed by the commission, unless under this chapter the same are seized or forfeited.

(b) Any bank, trust company, or financial institution owning or possessing intoxicating liquor [~~which~~] or tobacco that was acquired by the bank, trust company, or financial institution in the ordinary course of its business, may sell the intoxicating liquor or tobacco with the permission of and upon conditions set by the commission.

(c) Any person acting as personal representative[,] or guardian of a licensee's estate, or any receiver, assignee for benefit of creditors, or trustee in bankruptcy, may sell the stock of intoxicating liquor or tobacco with the permission of and upon conditions set by the commission, except as otherwise provided in this chapter.

(d) Any insurance company, or any common carrier acting as an insurer for losses to persons shipping intoxicating liquor[,] or tobacco, may take possession of and sell the intoxicating liquor[,] or tobacco, the containers of which have been damaged by fire or otherwise, with the permission of and upon conditions set by the commission.

(e) Any person in possession of a stock of lawfully acquired intoxicating liquor or tobacco under a foreclosure proceeding, proceedings for enforcement of a lien, civil execution, or under any other proceeding or process, may sell such intoxicating liquor or tobacco with the permission of and upon conditions set by the commission."

SECTION 30. Section 281-101, Hawaii Revised Statutes, is amended to read as follows:

"§281-101 Manufacture or sale without license; penalty. If any person, acting in person or by or through any agent, servant, or employee, manufactures or sells any liquor[,] or sells any tobacco, either directly or indirectly, or upon any pretense or by any subterfuge, except as authorized pursuant to this chapter, the person shall be fined not more than $2,000 or imprisoned not more than one year, or both."

SECTION 31. Section 281-101.4, Hawaii Revised Statutes, is amended to read as follows:

"§281-101.4 Hearing, illegal manufacture, importation, or sale of liquor[.] or tobacco. (a) The liquor commission [~~or liquor control adjudication board~~] may assess and collect a penalty, or reprimand a person for not having a valid license to manufacture or sell any liquor or to sell any tobacco in violation of this chapter or of any rule [~~or regulation~~] applicable thereto.

(b) In every case where the administrator elects to conduct proceedings under this section where it is proposed to assess and collect a penalty from a person for not having a valid license to manufacture or sell any liquor or to sell any tobacco in violation of this chapter or of any rule [~~or regulation~~] applicable thereto, that person shall be entitled to notice and hearing in conformity with chapter 91.

(c) At the hearing, before final action is taken by the commission [~~or board~~], the person shall be entitled to be heard in person or through counsel and shall be given a full and fair opportunity to present facts showing that the alleged cause or causes for the proposed action do not exist, or any reason why no penalty should be imposed. The testimony taken at the hearing shall be under oath and recorded stenographically, or by machine, but the parties shall not be bound by the strict rules of evidence; certified copies of any transcript and of any other record made of or at the hearing shall be furnished to a person upon that person's request and at that person's expense.

(d) Any order, reprimand, or penalty imposed by the commission or board upon a person for not having a valid license to manufacture or sell any liquor or to sell any tobacco in violation of this chapter or of any rule [~~or regulation~~] applicable thereto shall be in addition to any penalty that might be imposed upon that person's conviction in a court of law for any violation of this chapter. The amount of penalty assessed and collected by the commission or board from any person under this section for not having a valid license to manufacture or sell any liquor or to sell any tobacco shall not exceed the sum of $2,000 for each charge.

(e) Whenever the service of any order or notice [~~shall be~~] is required by this section the service shall be made in the following manner[~~: in the case of any~~]. If a violation is based upon the personal observation of any investigator, a written notice of the violation shall be given to the person charged with a violation within a reasonable period of time after the alleged violation occurred[~~, the~~]. The person charged shall be requested to acknowledge receipt of the notice of alleged violation, or, if the person cannot be found after diligent search, by leaving a certified copy thereof at the person's dwelling house or usual place of abode with some person of suitable age and discretion residing therein[~~; and if~~]. If the person cannot be found after diligent search, and service cannot be made, then service may be made by depositing another certified copy thereof in the certified mail of the United States post office, postage prepaid, addressed to the person at the person's last known residence address; provided[,] that in the case of a partnership, corporation, unincorporated association, or limited liability company, service may be made upon any partner, officer, or member thereof."

SECTION 32. Section 281-102.5, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) The commission [~~or board~~] shall revoke for a period of not less than six months the license of any manufacturer, rectifier, wholesaler, retailer, or other licensee who violates, directly or indirectly, the provisions of this section. The penalty prescribed in this section is cumulative and in addition to any other penalties prescribed in this chapter."

SECTION 33. Section 281-104, Hawaii Revised Statutes, is amended to read as follows:

"§281-104 Investigators, employees, counsel for. Whenever any investigator or other employee of the liquor commission shall be prosecuted for any crime or sued in any civil cause for acts done in the performance of the investigator's or employee's duty as such investigator or employee, the investigator or employee shall be represented and defended (1) in any such criminal proceeding by an attorney to be employed and paid by the commission and (2) in any such civil cause by the [~~corporation counsel or county attorney, of the county in which the investigator or employee is serving or if permitted under the appropriate county charter,~~] attorney general or by an outside attorney to be employed and paid for by the commission."

SECTION 34. Section 281-105, Hawaii Revised Statutes, is amended to read as follows:

"§281-105 Determination whether acts were in scope of duty. The determination of whether the acts of an investigator or other employee of the liquor commission, when the investigator or other employee is being prosecuted or sued, were done in the performance of the investigator's or other employee's duty, so as to entitle the investigator or other employee to be represented by the [~~county attorney or corporation counsel of the county or city and county of the commission in question,~~] attorney general or by an attorney employed and paid by the commission shall be made by the commission [~~of the county~~] after consultation with the [~~county attorney or corporation counsel~~] attorney general who may make a recommendation to the commission in respect thereof if the [~~county attorney or corporation counsel~~] attorney general so desires, and such determination shall be conclusive for such purpose only."

SECTION 35. Section 281-106, Hawaii Revised Statutes, is amended to read as follows:

"§281-106 Prosecutions not to exclude other remedies affecting license or goods. The provisions in this chapter for the imposition upon any licensee of the penalties by fine or imprisonment for any violation of this chapter or of any rule or regulation made hereunder having the force of law shall be in addition to and independent of any other right of the liquor commission [~~or the liquor control adjudication board~~] under this chapter to effect a suspension or revocation of the license of the licensee and shall also be in addition to and independent of any proceeding to effect the forfeiture of any liquor or other property belonging to the licensee as contemplated by this chapter."

SECTION 36. Section 281-111, Hawaii Revised Statutes, is amended to read as follows:

"§281-111 Condemnation of property or liquor; disposition. Any still, plant, or other equipment shown to have been used for the manufacture of liquor in violation of this chapter and any liquor manufactured or sold in violation of this chapter shall be subject to summary seizure as herein provided or to subsequent seizure, and may be condemned and adjudged forfeited to the State, in addition to any penalty separately provided for the violation, the same to be enforced by appropriate legal proceedings in the name of the State. All such property and liquor so condemned and forfeited may be ordered by the court having jurisdiction (1) to be wholly or partially destroyed, or (2) to be sold, wholly or partially, for the account of the county wherein the same were seized; provided that the court may order any such liquor, if suitable, to be delivered to the department of health for distribution to any public institution for use therein for medicinal purposes. The order of the court with respect to such property or liquor shall be effectively executed by the sheriff or the sheriff's deputy, or by the chief of police or the chief of police's deputy, or by any police officer, or by the commission's administrator, or by any investigator, having jurisdiction, within such time as may be fixed in the order but not exceeding sixty days. If any person, whether or not an officer or employee of the State or any county, takes, disposes of, or uses in any manner or to any extent, any of such property or liquor otherwise than as herein provided, the person shall be guilty of a misdemeanor and upon conviction thereof shall be punished as provided in section 281-102."

SECTION 37. Section 281-12, Hawaii Revised Statutes, is repealed.

["~~§281-12 Commission and board~~ office. The council of each county shall furnish the liquor commission and the liquor control adjudication board of the county suitable quarters for its meetings, the transaction of its business, and the keeping of its records. The office of the commission and board shall at all times be open for the transaction of its business during its prescribed business hours."]

SECTION 38. Section 28-8.3, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) No department of the State other than the attorney general may employ or retain any attorney, by contract or otherwise, for the purpose of representing the State or the department in any litigation, rendering legal counsel to the department, or drafting legal documents for the department; provided that the foregoing provision shall not apply to the employment or retention of attorneys:

(1) By the public utilities commission, the labor and industrial relations appeals board, and the Hawaii labor relations board;

(2) By any court or judicial or legislative office of the State;

(3) By the legislative reference bureau;

(4) By any compilation commission that may be constituted from time to time;

(5) By the real estate commission for any action involving the real estate recovery fund;

(6) By the contractors license board for any action involving the contractors recovery fund;

(7) By the trustees for any action involving the travel agency recovery fund;

(8) By the office of Hawaiian affairs;

(9) By the department of commerce and consumer affairs for the enforcement of violations of chapters 480 and 485;

(10) As grand jury counsel;

(11) By the Hawaiian home lands trust individual claims review panel;

(12) By the Hawaii health systems corporation or any of its facilities;

(13) By the auditor;

(14) By the office of ombudsman;

(15) By the insurance division;

(16) By the University of Hawaii;

(17) By the Kahoolawe island reserve commission;

(18) By the division of consumer advocacy; [or]

(19) By the liquor commission; or

[~~(19)~~] (20) By a department, in the event the attorney general, for reasons deemed by the attorney general good and sufficient, declines, to employ or retain an attorney for a department; provided that the governor thereupon waives the provision of this section."

2. By amending subsection (c) to read:

"(c) Every attorney employed by any department on a full-time basis, except an attorney employed by the public utilities commission, the labor and industrial relations appeals board, the Hawaii labor relations board, the office of Hawaiian affairs, the Hawaii health systems corporation, the department of commerce and consumer affairs in prosecution of consumer complaints, insurance division, the division of consumer advocacy, the University of Hawaii, the liquor commission, the Hawaiian home lands trust individual claims review panel, or as grand jury counsel, shall be a deputy attorney general."

SECTION 39. All rights, powers, functions, and duties of the county liquor commissions are transferred to the department of health.

All officers and employees whose functions are transferred by this Act shall be transferred with their functions and shall continue to perform their regular duties upon their transfer, subject to the state personnel laws and this Act.

No officer or employee of the State having tenure shall suffer any loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefit or privilege as a consequence of this Act, and such officer or employee may be transferred or appointed to a civil service position without the necessity of examination; provided that the officer or employee possesses the minimum qualifications for the position to which transferred or appointed; and provided that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.

An officer or employee of the State who does not have tenure and who may be transferred or appointed to a civil service position as a consequence of this Act shall become a civil service employee without the loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefits or privileges and without the necessity of examination; provided that such officer or employee possesses the minimum qualifications for the position to which transferred or appointed.

If an office or position held by an officer or employee having tenure is abolished, the officer or employee shall not thereby be separated from public employment, but shall remain in the employment of the State with the same pay and classification and shall be transferred to some other office or position for which the officer or employee is eligible under the personnel laws of the State as determined by the head of the department or the governor.

SECTION 40. All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the county liquor commissions relating to the functions transferred to the department of health shall be transferred with the functions to which they relate.

SECTION 41. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

SECTION 42. In codifying the new part added to chapter 281, Hawaii Revised Statutes, by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in the new sections' designations in this Act.

SECTION 43. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 44. This Act shall take effect on July 1, 2003.

INTRODUCED BY:	_____________________________