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HomeMy WebLinkAbout2025-12-04 Liquor Adjudication Board Minutes HiloCOUNTY OF HAWAI`I DEPARTMENT OF LIQUOR CONTROL LIQUOR ADJUDICATION BOARD MINUTES — DECEMBER 4, 2025 HILO LAGOON CENTRE 101 AU PU N I STREET, UNIT 230 H I LO, HAWAI `I I. Call to Order The meeting was called to order by Chair Sidney Fuke at 1:34 P.M., in the Department of Liquor Control, Hilo Meeting Room, Hilo Lagoon Centre, 101 Aupuni Street, Unit 230, Hilo, Hawaii. The following were present and constituted a quorum: Board Members: Sidney Fuke, Chair Dawn Raymond, Vice Chair Ceci Davenport, Board Member Michael Hughes, Board Member Donn Mende, Board Member Absent and Excused: None Others Present: Gerald Takase, Director Brandon Gonzalez, Administrative Officer Dakota Frenz, Deputy Corporation Counsel (Department/Prosecutor) Sinclair Salas Ferguson, Deputy Corporation Counsel (Board) Stacie Waltjen, Licensing Officer ZoeAnn Bertelmann, Licensing Technician Hau`oli Sayles, Board Secretary Fuke: Before we begin however, I'd like to acknowledge the presence of a number of the Department's liquor inspectors or investigators, welcome. And to all of you and the Board Members, I got to remind you to please silence any electronic devices that you might have. And, I'd like to introduce the Board Members starting with our newest Board Member on my far right, take it away, there. Mende: Thank you, Sidney. Donn Mende, first meeting. Raymond: Dawn Raymond, Vice Chair. Salas Ferguson: Deputy Corporation Counsel Sinclair Salas Ferguson. Davenport: Ceci Davenport, Board Member. Hughes: Mike Hughes, Board Member. Hawaii County is an Equal Opportunity Provider and Employer Takase: I'm Gerald Takase, Director. To my left is Brandon Gonzalez, our Administrative Officer, Stacie Waltjen our Licensing Officer, and Zoe Bertelmman our Licensing Technician sitting in, Hau`oli Sayles is our hearings reporter, and Cody Frenz is our Prosecutor. II. Approval of Minutes (01:35 PM) Fuke: The first order of business is the action on the minutes of August 21 St, 2025, 1 assume that all of the Board Members had a chance to review that, and if so are there any comments or edits to the minutes? There were no comments or edits by Board Members. Fuke: Hearing none, is there a motion to approve? Raymond: So moved. Hughes: Second. Board Member Raymond moved to approve the August 21, 2025, meeting minutes as circulated; Seconded by Board Member Hughes. Fuke: It's been moved and seconded, any discussion? There was no discussion by Board Members. Fuke: All those in favor please say "Aye." Fuke: "Nay". The Board Members voted "Aye." There was no opposition by Board Members. Fuke: Motion is unanimously carried. The motion was carried unanimously. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 4, 2025 - HILO PAGE 2 OF 29 III. Hearings (01:36 PM) 1. CASE NO. 2025-004 n the Matter of the Accusation Against Patricio's Mexican Taqueria, Inc., dba Patricio's Mexican Taqueria #2, located at the Matsuyama Center, 73-4038 B Huliko`a Drive, Kailua-Kona, Hawaii. Informal Hearing (Alternative II) in violation of Rule 3-1(S) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii, for purchasing, acquiring and/or selling liquor from other than a licensed wholesaler or manufacturer. Fuke: At first, we were going to call the licensee and representative, but we were just handed a notice from the owner Mr. Mitchell stating that he would not be able to attend. He extended his apologies and at the same time noted that this was their only violation and he's taking corrective action. So, having said that then, Ms. Frenz, would you be in a position to read the complaint and the accusation? Frenz: Yes, Chair. The complaint and accusation states the following, on or about the 1st day of December 2024, in the County and State of Hawaii, the Licensee, Patricio's Mexican Taqueria, Inc., dba Patricio's Mexican Taqueria #2, did purchase, acquire and/or sell liquor from other than a licensed wholesaler or manufacturer, in violation of Rule 3-1(S) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii. In this case as you've already indicated, Chair, it's an informal hearing, the licensee did select Alternative II, admitting to the allegations before this Board, waiving its right to a formal hearing and appeal, requesting an informal hearing to present facts and circumstances about the violation, and that is the written correspondence that was provided to everybody today and the Department received it this morning. Fuke: Thank you very much, Ms. Frenz. Board Members, do you have any questions or discussion regarding the complaint and accusation? There was no discussion by Board Members. Fuke: If not, is there a motion to find the Licensee in violation of the charge? Raymond: So moved. Hughes: Second. Board Member Raymond moved to find the Licensee in Case No. 2025-004 in violation of Rule 3-1(S) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii, for purchasing, acquiring and/or selling liquor from other than a licensed wholesaler or manufacturer; Seconded by Board Member Hughes. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 4, 2025 - HILO PAGE 3 OF 29 Fuke: It's been moved and seconded that the licensee be found in violation of the charge, any discussion? There was no discussion by Board Members. Fuke: If not, all those in favor please say "Aye." The Board Members voted "Aye." Fuke: Opposed, "Nay." There was no opposition by Board Members. Fuke: Motion is unanimously carried. The motion was carried unanimously Fuke: Ms. Frenz, could you read the Department's proposed recommendation for penalty? Frenz: Yes, it's a $1,000.00 fine, with $500.00 suspended for the next one (1) year on the condition that this licensee commits no similar law violations. The $500.00 is to be paid to the Department within 30 days of receipt of the Decision and Order for this violation. I would also indicate just for the Board 's information, this licensee has no prior violations. They also have taken responsibility and similar violations by other licensees result in the same recommendation by the Department. Fuke: Thank you very much. Board Members, you've heard the Department's proposed recommendation of $1,000.00 with $500.00 being suspended, any discussion on the penalty? Davenport: Brandon, what's the maximum? Was that the maximum, $1,000.00? Gonzalez: No, the maximum for violations per statute is up to $5,000.00 per violation. Davenport: Up to $5,000.00. Gonzalez: What the Prosecutor explained was our past cases before the Adjudication Board, we have imposed $1,000.00 fines, the highest per offense. Hughes: But actually it's a $500.00 fine if there is no more infractions? Gonzalez: Yes, the suspension takes into account the circumstances and their history. Thank you, Mr. Hughes. Fuke: Okay, any more questions or discussion regarding the proposed penalty? There was no further discussion by Board Members. Fuke: I just had a question, I know the answer to the question but I just wanted to ask it for the sake of asking. You know, so it's a situation where, that the licensee was selling alcohol that wasn't purchased from the wholesaler, correct? So, like in this case, you have possibly if he MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 4, 2025 - HILO PAGE 4 OF 29 has like a you know, bottle of vodka for example, it's obvious that he didn't buy it from the wholesaler, so that would be a violation? Frenz: That's correct. Fuke: Yeah, so if he didn't have you know, if he ran out of beer for example, can he go home and get some beer and then sell it? Frenz: No. Fuke: Okay. Frenz: Unfortunately not. Fuke: Okay, thank you. He got to close up shop on that? Frenz: Yes, for liquor anyway. Fuke: Thank you very much. Okay, now we had the discussion, may I have a motion on the penalty which is $1,000.00 and $500.00 suspended? Raymond: So moved. Hughes: Second. Board Member Raymond moved to accept the recommendation by the Department for penalty in Case No. 2025-004, that the Licensee is assessed a fine in the amount of ONE THOUSAND AND NO/100 DOLLARS ($1 000.00), with FIVE HUNDRED AND NO/100 DOLLARS ($500.00) to be suspended for one (1) year from the date of service of this Decision and Order, on the condition that there are no similar violations of Rule 3-1(S) within that period and that FIVE HUNDRED AND NO/100 DOLLARS ($500.00) is to be paid within 30 days upon receipt of this Decision and Order, payable to the Department of Liquor Control; Seconded by Board Member Hughes. Fuke: Okay, it's been moved and seconded, discussion? There was no discussion by Board Members. Fuke: All those in favor please say "Aye." The Board Members voted "Aye." Fuke: Opposed say "Nay." There was no opposition by Board Members. Fuke: Okay, the motion is unanimously carried. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 4, 2025 - HILO PAGE 5 OF 29 The motion was carried unanimously Fuke: I assume a written Decision and Order will be sent to the licensee. 2. CASE NO. 2025-005 (01:41 PM) In the Matter of the Accusation Against Shaka Kava LLC, dba Koa's Lounge, located at 15-2929 Old Pahoa Village Road, Pahoa, Hawaii. Informal Hearing (Alternative IV) in violation of Rule 3-6(A)(2) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii, for failure to submit a Final Gross Liquor Sales Report by the deadline of July 31, 2025. Fuke: Ms. Frenz, could you please read the Complaint and Accusation? Frenz: Yes, sir. On or about the 31 St day of July 2025, in the County and State of Hawaii, the Licensee, Shaka Kava LLC, dba Koa's Lounge, failed to submit a Final Gross Liquor Sales Report by the deadline of July 31 St, 2025, in violation of Rule 3-6(A)(2) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii. In this case, Chair, the Licensee selected Alternative IV, they admitted to the allegations, stipulating that disciplinary action could be taken without them appearing in front of the Board, they waived their right to a hearing and an appeal, knew that they were subject to the penalties pursuant to Rule 1.12, which is a $100.00 fine for their first offense. They have already made payment for that $100.00 fine on November 6, 2025. Fuke: Thank you very much, Ms. Frenz. Board Members, any discussion regarding the complaint and accusation? There was no discussion by Board Members. Fuke: If not, is there a motion to find the Licensee in violation of the charge? Raymond: So moved. Hughes: Second. Board Member Raymond moved to find the Licensee in Case No. 2025-005 in violation of Rule 3-6(A)(2) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii, for failure to submit a Final Gross Liquor Sales Report by the deadline of July 31, 2025; Seconded by Board Member Hughes. Fuke: It's been moved and seconded that the Licensee be found in violation of the charge, any discussion? MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 4, 2025 - HILO PAGE 6 OF 29 There was no discussion by Board Members. Fuke: If not, all those in favor please say "Aye." The Board Members voted "Aye." Fuke: Opposed say "Nay." There was no opposition by Board Members. Fuke: Motion is unanimously carried. The motion was carried unanimously. Fuke: Ms. Frenz, could you please read the proposed recommendation? Frenz: Yes, it's the $100.00 fine, they've already made payment for that, they have no similar violations of this nature within the last 5 years, they've taken responsibility, selecting Alternative IV. Fuke: Thank you very much. Board Members, any discussion on the penalty? There was no discussion by Board Members. Fuke: If not, is there a motion on the penalty which has already been paid? Raymond: So moved. Hughes: Second. Board Member Raymond moved to accept the recommendation of the Department for penalty in Case No. 2025-005, that the Licensee be assessed a fine pursuant to Rule 1.12, in the amount of ONE HUNDRED AND NO/100 DOLLARS ($100.00), that was paid to the Department of Liquor Control on November 6, 2025; Seconded by Board Member Hughes. Fuke: It's been moved and seconded that the penalty is accepted, any further discussion? There was no discussion by Board Members. Fuke: If not, all those in favor please say "Aye." The Board Members voted "Aye." Fuke: Opposed say "Nay." There was no opposition by Board Members. Fuke: The motion is unanimously carried. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 4, 2025 - HILO PAGE 7 OF 29 The motion was carried unanimously. Fuke: So again, the written Decision and Order will be presented to the Licensee. 3. CASE NO. 2025-006 (01:44 PM) In the Matter of the Accusation Against Smash Daddy's LLC, dba Smash Daddy's, located at the Waikoloa Plaza, 68-1820 Waikoloa Road, #E105, Waikoloa, Hawaii. Informal Hearing (Alternative II) in violation of Rule 5-4(B) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii, for an employee, Reanna FERREIRA, consuming liquor while on duty in the licensed premises. Representing licensee: Shawn O'Shaughnessy, Co-owner, and Soren Arvidson, Manager Fuke: Ms. Frenz, could you read the complaint and accusation? Frenz: I think before we do that, Chair, if we could have our licensees introduce themselves, would that be okay? Fuke: Okay. O'Shaughnessy: Yes, Shawn O'Shaughnessy, I'm a owner -operator, Smash Daddy's. Arvidson: Soren Arvidson, also owner -operator. Frenz: Thank you, Chair, if I may? Fuke: Sure. Frenz: On or about the 26t" day of July 2025, in the County and State of Hawaii, an employee of Licensee, Smash Daddy's LLC, dba Smash Daddy's, Reanna FERREIRA, consumed liquor while on duty in the licensed premises, in violation of Rule 5-4(B) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii. In this case, Chair, it's an informal hearing, the Licensees who are present here today did select Alternative II, admitting to the allegation, waiving the right to a hearing and an appeal, but did want to request the opportunity to come before this Board and explain the facts and circumstances surrounding the allegation. Fuke: Thank you very much, Ms. Frenz. Board Members, any discussion regarding the complaint or accusation itself? There was no discussion by Board Members. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 4, 2025 - HILO PAGE 8 OF 29 Fuke: If not, is there a motion to find the Licensee in violation of the charge? Raymond: So moved. Fuke: It's been moved, is there a second? Hughes: Second. Board Member Raymond moved to find the Licensee in Case No. 2025-006 in violation of Rule 5-4(B) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii, for an employee, Reanna FERREIRA, consuming liquor while on duty in the licensed premises; Seconded by Board Member Hughes. Fuke: It's been moved and seconded that the licensee be found in violation of the charge, any further discussion on it? There was no discussion by Board Members. Fuke: If not, all those in favor please say "Aye." The Board Members voted "Aye." Fuke: Opposed say "Nay." There was no opposition by Board Members. Fuke: The motion is unanimously carried. The motion was carried unanimously Fuke: So now, I guess to the licensee, to both of you, prior to the assessing of the penalty, do you want to share any thoughts you may have regarding the violation and the proposed penalty? O'Shaughnessy: Yes, you know the reason we came is for one, we take it very seriously and we wanted to be here in front of you guys to you know, just to let it be known that we understand what happened. That said person has since gotten her blue card, new employee, she was finished working, we were closed, everybody was having a pau hana, one done out the door. So, what she did was go back to get her purse from behind where they keep them under the counter, made the mistake of grabbing her pau hana and having it before she came back around to the other side. So, it was an honest mistake on her part, she didn't know better you know, right when Soren understood the situation, that is when he did see the guy standing on the corner, which they were over at 4K and kind of peaking in. So yeah, I mean we're here because we understand that it is serious and we wanted to you know just be very clear that she now knows the rules, now has went through the class. We have remedied all of those situations, we are very, very much in control of our staff, we have a very small staff. So, for us it was an honest mistake, I think what we learned from this is that you know, we teach ahead of time and I think we need to be allowed to be able to solve the problems, right? We got the MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 4, 2025 - HILO PAGE 9 OF 29 violation but there was no time to fix the issue, right? It was a mistake, just happened to be on the wrong side, and once it was done she was still almost in a panic because it's intimidating and she has no idea, you know, this is Reanna's first restaurant job. So, yeah that's what we're doing here, we want to just to make sure that it is very clear that we take it very serious. And to be honest, this is a first for us, I truly didn't maybe even clearly understand what we were checking off, you know. I much rather not get fined, I'd much rather not have a you know, a blip on our record, we don't have any blips, we haven't had any blips. We will never have another blip, you know what I mean? So, for me to be here in front of you guys, it was just that, to make sure that we know that we're taking all actions to make sure that this doesn't happen. Fuke: Thank you very much. Board Members, do you have any questions of the licensee? Hughes: So, is it a common practice at the end of a work day to have a drink with all your workers? O'Shaughnessy: No, I mean for a pau hana is a thing, you know if you'd like one, we offer that at the end of the shift, which most places do and almost say all of them do. She was clocked out, she was done for the day, all of them were done for the day, there was one person Gracie who was still in charge and still finishing up, but everybody on the clock out list was completely clocked out who was there including Soren, who was in charge that night which doesn't clock in and out but there. And you know, yeah it's a end -of -the -night thank you, see you later, but we don't hang out at Smash Daddy's. We close early for that reason, we close at 8:00 p.m. during the week, and 9:00 p.m. on the weekends. 9:00 p.m. is for that reason, it's not a place to hang out and you know we're not doing it to socialize and be there, we had a long shift, we're ready to go home. So, that's yes but no. Arvidson: Opportunity for the staff to just have one quick one, and then be able to go home and do whatever they do after work, but just as a kind of reward of okay, you just worked and here's a little something for you, but it's not common practice to be drinking with the employees like that, no. Fuke: Any other questions? There was no further discussion by Board Members. Fuke: I just had a question, I mean I'm not familiar with the restaurant, so is this a restaurant much more than it is a bar, correct? O'Shaughnessy: 100%, and we do a lot more burgers than beers, yeah. Fuke: Yeah, so how long have you been operating? O'Shaughnessy: Year and a half, mid -April is when we opened last year. And with that being said, we have I believe one of the higher blue card holding staff, everybody on our staff we require to take the blue card class for that reason. And Rihanna being our newest employee, hadn't taken the class yet, she was in the next one to go in and take the next class. So, taking steps to correct the situation. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 4, 2025 - HILO PAGE 10 OF 29 Fuke: Yes, very good. I just have another comment, I mean like I was reading the investigators report, and it said like when the investigator went in, he didn't smell any alcohol there. O'Shaughnessy: On anybody. Fuke: So, to me it's like oh okay, maybe it was a visual thing that you just you know made the inference, because oh there must have been a violation. So, I think to some extent there may have been like a self -reporting, so to that extent I give you credit to that, so. O'Shaughnessy: Thank you. Arvidson: That was definitely me, you know she definitely took her shot behind the bar, and wanted to own up to that because taking accountability for our actions, or lack of being able to step in before it happened, that's the thing for us too. I mean, we live with integrity and we don't want to pretend like it didn't happen, but at the same time we also feel like it was kind of an off situation, something that hasn't happened before and won't happen again. Fuke: Thank you very much. Do you have anything more you want to add, then? O'Shaughnessy: I don't think so. Fuke: Okay. Davenport: I have a question, is Inspector Ikeda here? Gonzalez: No. Davenport: No, because it seems like reading through this report, it's almost the opposite of his report. He says that he was, you know outside, he was looking in, he wasn't peeking in. And then, when he had initially started to go into the restaurant, I think you, I'm not sure which O'Shaughnessy: Soren. Arvidson: I was there. Davenport: I think you recognized him and it kind of indicates that you were maybe a little worried, and so you got up and you met him, you went back and you met him at the door. Arvidson: Right. So, we were locked up, it was closed, so the only way that he could get in was if I went to the door and opened it for him. Davenport: So, what time did you close that evening, like officially closed? Arvidson: We close at 9:00 p.m. on Fridays, Saturdays, and at 8:00 p.m. every other day. Davenport: Okay. Arvidson: Yeah. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 4, 2025 - HILO PAGE 11 OF 29 Davenport: And so, this took place at 10:23 p.m., and so it seemed like you say that she had clocked out but I'm looking at this, I guess a screenshot, and you can see where she clocked out or clocked in, but she was still functioning as you know an employee, he states here that she was cleaning up around the bar and then organizing. O'Shaughnessy: Nervously doing something after she realized that there's a lot going on and there are people of authority who are you know pointing the finger, I mean it's intimidating and she was intimidated by that. She truly went back to get her purse and finish her shift. Davenport: So, you're intimidated so you take a drink? O'Shaughnessy: No, that was before, that was all before that. I mean the time frame is one minute too, and that's something that we wanted to discuss also, she didn't take the shot, see the people and then clock out. I mean, the timeframe was off to me as well, I didn't understand that one bit. So, his report was at 10:23 p.m., and she clocked out at 10:24 p.m., that just seems, it's too coincidental that it's one minute apart, and so I didn't understand that as well, like she was finishing up. Davenport: But, I think you got that from your screenshot though, right? O'Shaughnessy: What happened? Arvidson: Her clock out time was 10:24 p.m. Davenport: Yeah, correct. So, that's where that one minute came from. Arvidson: So, she had just finished up and she went around to grab her purse, and then that's when she had taken her shot behind the bar, and everybody was done and then I turned around and I saw the investigators in the window. I know them, and so I went out there because I knew immediately like you can't do that. And before I could stop her from taking those actions, it happened, turn around I see the investigators, I went outside to talk to them. immediately owned up to it because I already know that that's a violation, you can't do that. So, I apologized for it, and then I let them back in because like I said, we've been closed for an hour and a half. O'Shaughnessy: Doors have been locked, everybody was done, the other employees who were there were sitting on the proper side of the bar just at the very end of the night. Arvidson: She at the time wasn't aware. Davenport: So, you unlock the door to let the inspector in? Arvidson: Yes, ma'am. I went outside and talked to them, and then I unlocked the door to let them in, so that they can get all the information that they needed. Gonzalez: So Soren, you were there, yeah, that night? Arvidson: Yes, sir. Gonzalez: Shawn, were you there that night? MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 4, 2025 - HILO PAGE 12 OF 29 O'Shaughnessy: I was not. Gonzalez: Yeah, as the boss and the owner, you just? O'Shaughnessy: Yeah, had to gather all the info? Gonzalez: Right. No so, actually I have an investigator that was there that night with Mr. Ikeda, Stefan Talerico if you guys have questions about how things went down, but I think Mr. Arvidson recited of how it happened. The investigators were outside walking towards the place and then they saw it through the glass, right? O'Shaughnessy: I mean I think to be fair if you ask them, they were at 4K and just kind of peeked because we have a partition wall that separates the two. They were next door and just came and kind of peeked around. Gonzalez: So, if you guys have questions about who was there and what they saw, I have an investigator that was there with Mr. Ikeda, yeah? O'Shaughnessy: And, we know them very well, we would let them in regardless you know, we talked to them every time they're there, we're excited to see them, we try and make them burgers every time. So, we're obviously going to go and let them in and you know, and say hi and be you know, we're friends. It wasn't even a guilty action, it was a hey, we did it, let's talk about this, you need to get all your info, we understand that. It was very cordial, very smooth, and very easy. And that's what I got out of as well, and Soren you know, said the exact same thing. So, that's again why we're here to kind of see what the verbiage is and how it all goes down, and how it all kind of plays in together. It just kind of all seemed pretty quick and a little bit of, yeah I mean, panic a little. Fuke: Any more questions or comments? There was no further discussion by Board Members. Fuke: Yeah, like from my point of view it was just like you know, I give you credit because it was kind of like self -reporting because you know the investigative report didn't say like I saw the person drinking. You know, as I mentioned it was just like you know, like an inference because all of the ingredients for like having to drink was there, and so it's kind of like self reporting, you know you acknowledge the violation, and so which is really great, to that extent give you kudos for that. O'Shaughnessy: Thank you. Fuke: Okay, since there are no other questions or comments from the Board Members, Ms. Frenz, could you read the proposed penalty? Frenz: Sure, the Department's recommendation is for a $500.00 fine to be paid within 30 days upon receipt of the Decision and Order, in this case for the violation, payable to the Department of Liquor Control. As you've already indicated and they've indicated here this afternoon, they've taken responsibility, selected Alternative II. The timing I think everyone's kind of caught on to the timing, it's a very unfortunate set of circumstances in you know, in the timing, right? And thankfully we are here with this Alternative II type of hearing, and not where MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 4, 2025 - HILO PAGE 13 OF 29 they're trying to contest whose watch was accurate because that could be problematic. So, do appreciate their forthrightness, their level of taking responsibility especially given the timing. think the fine is also in line and in fact frankly, some of the fines can be higher. The history, not with them but with other similar law violators, can be upwards of $1,000.00, sometimes more. So, the recommendation is to reflect the nature and the facts and circumstances of this case, so the recommendation again, $500.00 fine. Fuke: Okay, any discussions regarding the proposed penalty of $500.00? Hughes: Personally, I think the fine is too high for the circumstance, I would propose something more like a $250.00 fine with $250.00 suspended if there's no more violations. Fuke: Okay, I guess in concept similar to the other applications where the initial proposed fine was X, and then it was X minus Y. Board Members, any questions or comments on that? Hughes: I just feel there's too much gray area in this circumstance, that's my opinion. Fuke: Okay, thank you. You had your hands raised, so you want to say something? Arvidson: Just a quick question, what is the suspended mean, it's the 3rd time I've heard it about the fine, and then the suspended portion of that? Fuke: Yeah, in concept it would mean like, you have a $500.00 fine, right? $250.00 would be suspended and you pay $250.00. If there's like a similar type of violation over the next year, then you will be responsible for paying the balance plus any new penalty that may be imposed resulting from the new violation. Arvidson: Thank you. Fuke: Okay, so yeah, you heard what one of the Board Members is suggesting, a reduction of $250.00. May I have your response to that? O'Shaughnessy: Yeah, I mean again, we didn't know what we were doing, you know. We didn't know what we were getting into, or what the fines are or no fines, or what it would have been, so I mean we again, we understand what it is, and I think that yes, if you believe that's where it needs to be, then yeah, we'll take it. Fuke: Okay, thank you very much. Okay, Board Members, you heard the suggestion but there's no motion one way or the other, so is there a motion one way or the other? Hughes: Since I hear no motion, I'll make a motion that the fine is $250.00, with $250.00 suspended for one year, if there are no more violations. Frenz: If I could, Board Member Hughes, could I clarify? Hughes: Yes please. Frenz: I think maybe, I'm not sure if I'm hearing incorrectly or if I misunderstood the original comment from you, is it a $500.00 fine with $250.00 suspended for one year? MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 4, 2025 - HILO PAGE 14 OF 29 Hughes: Yes. Frenz: Okay, so that's your motion? Hughes: That's my motion. Frenz: Got it, okay. Fuke: Is there a second? Mende: Second. Board Member Hughes moved to accept the recommendation by the Department for penalty in Case No. 2025-006, that the Licensee is assessed a fine in the amount of FIVE HUNDRED AND NO/100 DOLLARS ($500.00), but with TWO HUNDRED FIFTY AND NO/100 DOLLARS ($250.00) to be suspended for one (1) year from the date of service of this Decision and Order, on the condition that there are no similar violations of Rule 5-4(B) within that period and that TWO HUNDRED FIFTY AND NO/100 DOLLARS ($250.00) is to be paid within 30 days upon receipt of this Decision and Order, payable to the Department of Liquor Control; Seconded by Board Member Mende. Fuke: Okay, it's been moved and seconded, any discussion on the proposed penalty? There was no discussion by Board Members. Fuke: If not, all those in favor please say "Aye." The Board Members voted "Aye." Fuke: Opposed say "Nay." There was no opposition by Board Members. Fuke: Motion is unanimously carried. The motion was carried unanimously Fuke: A Decision and Order will be served, which will be payable within 30 days of its receipt. RECESS AT 2:02 P.M. RECONVENE AT 2:10 P.M. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 4, 2025 - HILO PAGE 15 OF 29 4. CASE NO. 2025-007 (02:10 PM) In the Matter of the Accusation Against RMG Waikoloa, LLC, dba Romano's Macaroni Grill, located at the Queens' MarketPlace, 69-201 Waikoloa Beach Drive, Suite 1010, Waikoloa, Hawaii. Formal Hearing (Alternative III) in violation of Section 281-41(a) of the Hawaii Revised Statutes, as amended, for engaging in an illegal sale and transfer of a liquor license. Fuke: As will be explained by Ms. Frenz, because the alleged violator did not respond, guess the matter will be handled in a quasi-judicial manner. But before proceedings, all of the parties, which I assume would be the licensee as well as the other parties in the Department, you know may state for the record any objections they may have of the prehearing proceedings, particularly the form and substance of the hearing, if there are any objections by the parties, the Board will rule on it then or upon the end of the hearing. So, the first party, Liquor Department, you have any objections? Gonzalez: None from the Department, Chair, thank you. Fuke: And the licensee and the owner, Jason Kemp, is not here? Frenz: That's correct. I mean, if we want to be very formal, Jason Kemp? Jason Kemp? Jason Kemp? May the record reflect no response from a Jason Kemp. Fuke: Okay, the record confirms his absence. In terms of notice, I gather that you know, Ms. Frenz will cover that, whether and how the notice was provided to Mr. Kemp. So, could you please read the complaint and accusation? Frenz: Yes, Chair, and before I do that, I'd like to have the record reflect that this matter was scheduled for today at 1:30 p.m., it is currently 2:11 p.m., and our Licensing Officer Stacie Waltjen was kind enough to at my request to go outside and make sure that Jason Kemp, or a member on behalf of Jason Kemp, or a member of the public regarding Jason Kemp in this particular complaint and accusation was not outside uninformed that they needed to come in, and there is no one outside, so I'd like to also have the record reflect that. That aside Chair, on or about the 8t" day of April 2024, in the County and State of Hawaii, the licensee, RMG Waikoloa LLC, dba (doing business as) Romano's Macaroni Grill, engaged in an illegal sale and transfer of a liquor license, in violation of Section 281-41(a) of the Hawaii Revised Statutes, as amended. In this case, Chair and members of the Board, this is a formal hearing, a contested case pursuant to the Hawaii Revised Statutes, Chapter 91. The Department at this time requests that the Board proceed by default to an Alternative III hearing because no answer was received from the licensee after diligent efforts were made to notify the licensee of today's hearing. And, as I've already made the record clear, no one is present today in response to the complaint and accusation here at this time. In this case, the Department is asking that the Board proceed with this case even in their absence following a finding after I establish to you that the licensee received proper notice as required by law and the Board's rules, specifically pointing your attention to the Liquor Adjudication Board Rule 1.8(D)(3), which is titled, "Notice MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 4, 2025 - HILO PAGE 16 OF 29 and Hearing," it states and I'll read it to you, "The licensee or party upon selection of Alternative III request a formal hearing otherwise known as a contested case to offer defenses to charges in the complaint and accusation. In contested cases, the licensee involved shall be required to be present at the hearing. If the licensee or party fails to appear at the hearing after being duly noticed, as is the case here today, the contested case may proceed in the licensee's or the party's absence, and this Board may adjudicate the complaint and assess penalties, that's what your role says and that is the role that I'm asking that this Board implement at this time in light of their absence. It's under this very rule that the Department is seeking to proceed at this time, in line with this as I previously noted for the record, the hearing was in fact scheduled for today at 1:30 p.m. No one is present, nobody has appeared arguing on behalf of the licensee in this case, and we've already verified that no one is outside. As such, Chair and Board Members, all seeking their default for their failure to appear today, asking that we proceed in their absence pursuant to rule 1.8(D)(3) once you have received the sufficient proof that they received proper notice for today's hearing. So with that in mind, I have prepared what's been previously marked as exhibits A, B, and C on an exhibit list that will be provided to you at this time for your review and consideration, copies are going to be handed out to you at this time. All right, now that you all have the Department's exhibit list in front of you, I just want to focus your attention on A through C at this time. So, Exhibit A is a copy of the USPS (United States Postal Service) certified mail receipt dated November 17t", 2025, that's the date of the mailing in this case. The tracking number was 7018, well there are actually two tracking numbers, but you'll see reference to the certified mail receipt that's attached to Exhibit A. Exhibit B is a copy of an e-mail sent to the licensee at the e-mail address on file, I have it referenced there, to jason.kemp@mattgrill.com that was sent by Hau`oli Sayles, Liquor Adjudication Board and Liquor Commission Secretary, dated November 25t", 2025, at 1:52 p.m., Hawaii Standard Time. It is attached a copy of the complaint and accusation in this case and notice of the hearing today that was sent via certified mail again, pursuant to that exhibit on November 17t", 2025. Now if you take a look at Exhibit C, that shows you the USPS (United States Postal Service) delivery, there are actually two delivery efforts, one went to a vacant address, and the other one was actually delivered to the individual at the registered address in Colorado on November 21 St, 2025, at 3:28 p.m. Once this Board has had an opportunity to review Exhibits A through and including C, I would ask that the Board accept into evidence the Department's Exhibits as I've just described, proving that the licensee in this case had ample notice and time to appear, and or defend the complaint and accusation in this case. Fuke: Thank you very much, Ms. Frenz. Board Members, I know it seems like a very long document that might take you probably half an hour to read but from the Chair's perspective and a cursory examination of the exhibits, the Chair believes that they are appropriate and think that what Counsel is attempting to do is just to make sure that procedurally you know we are on the right footing. And then if so, then we can kind of proceed on the substance of the alleged violations. So, the Chair would recommend the acceptance of the Exhibits A, B, and C, into evidence, but obviously I can't make a motion, so I'm looking at a Board Member to, so I entertain a motion to that effect. Hughes: So moved. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 4, 2025 - HILO PAGE 17 OF 29 Raymond: Second. Board Member Hughes moved to admit Exhibits A, B, and C, into evidence; Seconded by Board Member Raymond. Fuke: Okay, it's been moved and seconded that Exhibits A, B, C, and D be admitted into evidence, any further discussions on it? There was no discussion by Board Members. Fuke: If not, all those in favor please say "Aye." The Board Members voted "Aye." Fuke: Opposed say "Nay." There was no opposition by Board Members. Fuke: Motion been unanimously carried. The motion was carried unanimously Fuke: So, procedurally I think that we're okay, thanks Ms. Frenz. Frenz: Yes, Chair, and I'll have Madam Secretary Ms. Hau`oli Sayles admit it into evidence, Exhibits A through and including C, at this time. Fuke: So, based on the Board 's action, Ms. Frenz, can you please proceed with the substance of the case? Frenz: If we could maybe before I do that Chair, could I ask the Board to consider a motion to find that the Department did in fact make diligent efforts to provide notice service of today's hearing and the complaint and accusation in this case, before I proceed? Fuke: Sure, thank you very much. Okay, Ms. Frenz is suggesting that there be a motion to find that the Department made diligent efforts to inform the licensee of today's hearing. Gonzalez: I'd like to add a few more facts from the Department, but I don't know if I have to be sworn in to tell the truth, I promise to tell the truth. So, regarding the notice attempts, I'd also like to place on the record that the Department also emailed Mr. Jason Kemp at the last known working e-mail address of jason.kemp@macgrill.com, on Tuesday, November 25t", 2025, at 1:52 p.m. with a copy of the complaint and accusation and the investigative report. We also posted a copy of the complaint and accusation at the premises at Queens MarketPlace on Friday, November 28t", 2025. and on Monday, December 1st, 2025. Our Department left copies of the complaint and accusation with the Queens MarketPlace property management office just in case Mr. Kemp happened to be there. So, those were all of the attempts by the Department. Salas Ferguson: Chair, can I say something? MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 4, 2025 - HILO PAGE 18 OF 29 Fuke: Sure, Counsel. Salas Ferguson: Deputy Corporation Counsel Sinclair Salas Ferguson, so in order to affect service, they have to diligently look for the person. If they can't find them, then they have to post it at the establishment and serve them via certified mail. If the owner is no longer in charge of the establishment, then they can just do certified mail. So, based on what you just said under your guys Rule 1.8(c), it appears that service has been completed. So, I think you can note for the record that under Rule 1.8(c), that would be the motion that service was made under Rule 1.8(c). Fuke: Okay, is there any discussion regarding Mr. Gonzalez's testimony? There was no discussion by Board Members. Fuke: Okay, and hearing what our Counsel had commented, is there a motion to accept the additional testimony and Exhibits A, B, and C, that the Department made every effort pursuant to Rule 1.8(c), to diligently inform the licensee of today's hearing. Salas Ferguson: It would be a motion under 1.8(c) that service is effectuated. Fuke: That services was effectuated, thank you very much. Okay, is there a motion to that? Hughes: So moved. Raymond: Second. Board Member Hughes moved to find the Department did make diligent efforts to provide service of notice and complaint and accusation of today's hearing to the licensee, pursuant to Rule 1.8(c) of the Rules and Regulations of the Liquor Adjudication Board of the County of Hawaii, State of Hawaii; Seconded by Board Member Raymond. Fuke: Okay, it's been moved and seconded that whatever was stated above is under consideration, so any discussion on it? There was no discussion by Board Members. Fuke: If not, all those in favor please say "Aye." The Board Members voted "Aye." Fuke: Opposed say "Nay." There was no opposition by Board Members. The motion was carried unanimously Fuke: Okay, thank you very much. So, based on the Board 's action, now Ms. Frenz, could you please proceed with the case? MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 4, 2025 - HILO PAGE 19 OF 29 Frenz: Yes, Chair. So, now I'd like to turn everyone's attention to Exhibit D of the Department's exhibit list. Exhibit D is a copy of the Notice of Violation and investigative report in this case, 2025-07, specifically report number KN24-011. I'd ask that you admit this exhibit into evidence. In essence, resulted in sort of a step back trial, that the report after being admitted into evidence would be in fact what you rely upon to affirm the allegations in the complaint that the prior owner, Mr. Kemp, Jason Kemp, did in fact transfer the liquor license in this case to a new owner without prior notice to the Liquor Commission and the Liquor Department of that intended sale and transfer. So, I'd ask that you admit Exhibit D into evidence, and that includes all of the information, the timeline, the efforts, the communications, all of the documents regarding the sale and transfer of the business from Jason Kemp to now Jason Roe, the new owner, so that you can find and concur with the Department's position in the complaint and accusation in this case. Fuke: Okay, just to recap for my understanding as well as the Board 's understanding is that like first of all, the licensee was fully informed of today's meeting. Frenz: Correct. Fuke: And that was already established and voted upon. Frenz: Correct. Fuke: Now the call is to accept Exhibit D as in dog, correct? Frenz: That's correct. Fuke: Which relates to this specific violation. Frenz: That's correct, it's the investigative report of everything that was observed, obtained, and gleamed in the course and scope of the investigation into this complaint and accusation. Fuke: Got it, okay. Frenz: So, I'm asking that this Board admit that into evidence after if assuming you're willing to do that, you would then have the opportunity to review it and consider it as to whether or not the Department has proven the complaint and accusation in this case. Fuke: Okay, so the Chair would entertain a motion to accept or reject the Exhibit D as in delta, is there a motion? Raymond: Motion to accept Exhibit D into evidence. Hughes: Second. Board Member Raymond moved to accept Exhibit D into evidence; Seconded by Board Member Hughes. Fuke: Okay, it's been moved and seconded that Exhibit D be accepted, any discussion? There was no discussion by Board Members. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 4, 2025 - HILO PAGE 20 OF 29 Fuke: All those in favor please say "Aye." The Board Members voted "Aye." Fuke: Opposed say "Nay." There was no opposition by Board Members. Fuke: The motion is accepted. The motion was carried unanimously Fuke: Now, are there any public or other kind of testimony relating to Exhibit D? There was no public testimony. Fuke: There's no one. Okay, the Chair would then entertain a motion to close the public hearing on this matter. Raymond: So moved. Davenport: Second. Board Member Raymond moved to close the public hearing; Seconded by Board Member Davenport. Fuke: Any discussion on the motion to close public hearing? Hughes: Just a question, so just trying to follow along, Cody maybe if you could explain the process that we just went through and why this is relevant to the Board? Frenz: As to Exhibit D? Hughes: Yes. Frenz: So, Exhibit D, if you consider the general process, let's consider the hearing we just had previously where Alternative II was selected. When a licensee selects Alternative II, a copy of that investigative report is already provided to all of you to have reviewed and considered, and then listen to whatever the licensee has to say as far as their version of what occurred or their explanation defense, considerations, etc. In this case, you don't have that because the idea is that we don't want you prejudice as a Board because we have no response, no defense, and so you have not had a copy of the investigative report to date for this particular complaint and accusation. So, given the fact that our licensee has failed to respond, appear, and defend, we've already established that they had proper notice, we've admitted the evidence or the exhibits that prove as evidence of their notice of today's hearing and their default, now we're at the evidentiary stage of the actual complaint and accusation. So, now Exhibit D provides a copy to you of exactly what the investigators did in this case, the evidence that they uncovered that established the elements of the failure or the illegal sale and transfer of the license in this case. So, the stage we're at right now, Board Member Hughes, is that I'm asking you guys to admit into evidence Exhibit D, and then after you have done that, MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 4, 2025 - HILO PAGE 21 OF 29 you would then review it to confirm that you agree that the evidence does suffice to support the complainant and accusation in this case. So, we're just trying to make sure that we follow those steps accordingly. Hughes: Thank you very much. Frenz: Sure. Fuke: So, perhaps it's not appropriate that we close the public hearing on this thing, yeah right? Frenz: Yes. Fuke: Okay, so can we take a five-minute recess so that the Board Members can review Exhibit D? And then we'll reconvene, and then we can make a decision from there. Gonzalez: And, thank you, Chair. Brandon Gonzalez, Administrative Officer, so I think I might have missed it, so there might be a summary of what the violation is, that there was a transfer of the license without written notification to the Department, and that's what the investigative report would be establishing. Fuke: Yet, this summary is kind of found in the agenda, yeah so that gives you a thumbnail sketch as far as what the allegation is. So, five minutes, so we'll reconvene at 2:35 p.m. RECESS AT 2:28 P.M. RECONVENE AT 2:35 P.M. Fuke: It's 2:35 p.m., the Board is back in session. So, I assume the Board has had a chance to review Exhibit D just for the sake of clarity I guess, can I ask Ms. Frenz to kind of like summarize the nature of the complaint again? Frenz: Yes, Chair. So, I know that Exhibit D, there's a lot of information, so a concise summary, the information under Exhibit D would indicate the following: The license was held specifically in this case by RMG Waikoloa, LLC (Limited Liability Company). RMG Waikoloa, LLC (Limited Liability Company) is a member -managed business by RMG Acquisition Company, LLC (Limited Liability Company). Jason Kemp, this was the CEO (Chief Executive Officer) of RMG Acquisition Company, LLC (Limited Liability Company) sold to Mana Restaurant Group, that new owner's name is Jason Roe, on April 8t", 2024. The sale occurred specifically, which is relevant to the statute or the rule in question, or excuse me, the Hawaii Revised Statute, without written application to the Commission by the proposed transferee, and the proper inspection of the premises, reference to a report by an inspector and a public hearing held by the Commission, not less than 14 days after one publication of notice thereof, that's what they failed to do in this case. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 4, 2025 - HILO PAGE 22 OF 29 Transferee, Jason Roe, the new owner of this entity applied for transfer of membership interest on Friday, June 13t", 2025. So again, the sale occurs April 8, 2024, new owner comes in and applies for the transfer on June 13, 2025, so after the fact. The transfer is actually approved by the Liquor Commission of this Department on October 2nd, 2025, and on October 3rd, 2025, the liquor license was placed on inactive status at the request of Mr. Jason Roe. His request is dated October 3rd7 2025, so in short, a sale occurs April 8, 2024, the Department is not notified until well thereafter. And as I indicated and I'll read it again, written application to the Commission by the proposed transferee, and after proper inspection of the premises reference to and report by an inspector, and a public hearing held by the Commission not less than 14 days after one publication of notice thereof, all of that did not occur and that in fact is the violation of the illegal sale and transfer in this case. Fuke: Thank you very, Ms. Frenz, any questions of her? There was no discussion by Board Members. Fuke: Okay, any further discussion on that Exhibit D and the complaint? There was no further discussion by Board Members. Fuke: If not, all those in favor please say "Aye." The Board Members voted "Aye." Fuke: Opposed say "Nay." There was no opposition by Board Members. Fuke: The motion to close public hearing is approved. The motion was carried unanimously Fuke: Now we're going to discussion on the complaint and the accusation, but before entertaining a motion to find the licensee in violation of the charge, you know because obviously it's a quasi-judicial process, so you know we need to I guess ultimately have a decision and then there'll be a proposed findings of fact, conclusions of law, and all that stuff. So given that, is there any proposed or recommended fine for this violation? Frenz: Yes, Chair. The Department's recommendation is a $100.00 fine. Fuke: After all this? Frenz: I know, a $100.00 fine payable within 30 days upon receipt of the decision and order for this violation, and frankly in this case we're treating Mr. Kemp, similar to other similarly situated licensees that failed to notify the sale and transfer of a license in this case. Fuke: Okay, sorry, Mr. Gonzalez? Gonzalez: Brandon Gonzalez, Administrative Officer for the Department, so I know, thank you for that comment. The rationale for the fine is this type of offense has historically been treated MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 4, 2025 - HILO PAGE 23 OF 29 similar to a failure to report a change in member, officer, or director. And, under our Liquor Adjudication Board rules, that type of offense has a specific fine for a first violation of $100.00. And so, that's where that fine schedule and the way we administer this penalty for this type of violation works out like this despite the workload. But, we'll still do the full fair investigation and thank you for your time in doing the hearing. But, it's up in all fairness to the licensees too. Fuke: Thank you very much for the explanation, any further questions that the Board may have of the staff or Ms. Frenz? There was no further discussion by Board Members. Fuke: If not, is there a motion to find the licensee in violation? Raymond: So moved. Hughes: Second. Board Member Raymond moved to find the Licensee in Case No. 2025-007 in violation of Section 281-41(a) of the Hawaii Revised Statutes, as amended, for engaging in an illegal sale and transfer of a liquor license; Seconded by Board Member Hughes. Fuke: It's been moved and seconded that the licensee be found in violation, any discussion? There was no discussion by Board Members. Fuke: All those in favor please say "Aye." The Board Members voted "Aye." Fuke: Opposed say "Nay." There was no opposition by Board Members. Fuke: Motion is carried. The motion was carried unanimously Fuke: The penalty recommendation you all heard, it seems like our hands are tied, the maximum number is $100.00, so is there a motion on the penalty? Raymond: So moved. Hughes: Second. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 4, 2025 - HILO PAGE 24 OF 29 Board Member Raymond moved to accept the recommendation by the Department for penalty in Case No. 2025-007, that the Licensee is assessed a fine in the amount of ONE HUNDRED AND NO/100 DOLLARS ($100.00), to be paid within 30 days upon receipt of this Decision and Order, payable to the Department of Liquor Control; Seconded by Board Member Hughes. Fuke: It's been moved and seconded that the $100.00 maximum penalty be imposed on the licensee, any discussion? Hughes: Just one question, so the license was transferred to this other individual, so he is no longer doing anything with that license, is that correct? Frenz: He as in Mr. Kemp? Hughes: No, Mr. Roe? Frenz: Mr. Roe? It's on inactive status at the moment. Takase: So, Mr. Roe took over Macaroni Grill, and I think you guys all know what happened to Macaroni Grill. Well, they went under, so that's why there's litigation, that's why nobody is appearing because they're fighting over who's responsible for what, so. You know, we're kind of left, you know that's why we went through this whole prolonged process of notification and everything because I think they're blaming each other, so they're not going to come here and admit to anything that took place. Hughes: So, what happens with their inventory? Takase: So, Queen's MarketPlace actually came in and took possession of the location and everything that was in it. Hughes: Just curious, thank you. Fuke: Any further questions or discussion on this matter? There was no further discussion by Board Members. Fuke: If not, all those in favor please say "Aye." The Board Members voted "Aye." Fuke: Opposed say "Nay." There was no opposition by Board Members. Fuke: Okay, the $100.00 penalty is imposed on the licensee. The motion was carried unanimously MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 4, 2025 - HILO PAGE 25 OF 29 Fuke: And Ms. Frenz, I guess you will prepare the proposed Findings of Fact and Conclusions of Law. AND 5. CASE NO. 2025-008 (02:42 PM) In the Matter of the Accusation Against RMG Waikoloa, LLC, dba Romano's Macaroni Grill, located at the Queens' MarketPlace, 69-201 Waikoloa Beach Drive, Suite 1010, Waikoloa, Hawaii; Formal Hearing (Alternative III): COUNT 1 In violation of Rule 3-1(S) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii, for purchasing, acquiring and/or selling liquor from other than a licensed wholesaler or manufacturer. COUNT 2 In violation of Section 281-40 of the Hawaii Revised Statutes, as amended, for having unlicensed liquor in the licensed premises. 6. CASE NO. 2025-009 In the Matter of the Accusation Against RMG Waikoloa, LLC, dba Romano's Macaroni Grill, located at the Queens' MarketPlace, 69-201 Waikoloa Beach Drive, Suite 1010, Waikoloa, Hawaii. Formal Hearing (Alternative III) in violation of Rule 5-11(A) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii, for failure to notify the deparment in writing of a temporary closure of the licensed premises. Fuke: Okay, I understand that Item No. 5 and 6 will be deferred, or consolidated and deferred, is that correct? Frenz: That's correct, I believe that we are looking to reset these, so these are the matters that we're just being discussed, right? With the new owner Jason Roe, I believe February, Mr. Gonzalez? Gonzalez: Thank you. Mr. Chair, at the request of the licensee, these matters would be continued to the next Adjudication Board meeting regularly scheduled for February 19, 2026. We actually gave Mr. Roe the option of January or February, which would work for his schedule, and he replied last night by e-mail that he selected February 19t" for the rescheduled hearing date. So, we ask that you make a motion for this Item No. 5 and 6 be continued at the request of the licensee. Fuke: Okay, before we go into that motion, I needed to ask, so you know given like how we just concluded this so-called quasi-judicial contested case process on the other matter, in as MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 4, 2025 - HILO PAGE 26 OF 29 much as there's a response, is there going to have to be a need for us to go through the same process again? Frenz: I think it's yet to be seen but it's possible, I mean the communication the Department had with Mr. Roe occurred yesterday on the eve of today's hearing, so it's yet to be seen. But it is very possible that we may go through the same process down the road for the other two matters that we just continued to February, that'll be determined at the time. Fuke: Okay, thank you very much. So, is there a motion to continue Item Nos. 5 and 6 to the Board 's next meeting tentatively scheduled for February 19t", 2026? Hughes: So moved. Raymond: Second. Board Member Hughes moved to continue Case Nos. 2025-008 and 2025-009, to the next hearing date tentatively scheduled for February 19, 2026; Seconded by Board Member Raymond. Fuke: It's been moved that Item Nos. 5 and 6 be continued tentatively to the Board's next meeting, February 19t", any discussion? There was no discussion by Board Members. Fuke: All those in favor say "Aye." The Board Members voted "Aye." Fuke: Opposed say "Nay." There was no opposition by Board Members. Fuke: Motion is carried. The motion was carried unanimously IV. Unfinished Business (02:44 PM) Fuke: There is none. V. New Business (02:45 PM) 1. Election of Chair and Vice Chair for 2026 Fuke: The nominations are open. Hughes: I make a motion that Dawn Raymond be the Chairman. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 4, 2025 - HILO PAGE 27 OF 29 Raymond: Are we just making motions for the Chair at this time, or Vice Chair too? Fuke: We're just kind of like looking for nominations and the only nominees so far is for Chair, is Dawn, so are there any other nominees for the Chair? There were no other nominees for Chair. Fuke: Okay, so by default then, Dawn, congratulations on you being the Chair. Now, we're looking for a nominee for the Vice Chair. Raymond: I would like to nominate Michael Hughes for Vice Chair. Fuke: Mr. Hughes, are there any other nominees? There were no other nominees for Vice Chair. Fuke: Okay, I guess by default you have Michael Hughes being the Vice Chair, congratulations, Mr. Hughes. Frenz: I guess if, just to be extra squeaky clean, is it fair to say then that somebody wants to make a motion that Dawn Raymond be the Chair, and that Michael Hughes be the Vice Chair for the next calendar year for the Liquor Adjudication Board? We don't actually have a motion. Hughes: So moved. Davenport: Second. Board Member Hughes moved to elect Dawn Raymond as Chair, and Michael Hughes as Vice Chair for 2026; Seconded by Board Member Davenport. Fuke: Okay, it's been moved and seconded that the new Chair be Dawn Raymond, and the Vice Chair is Michael Hughes, will begin their term beginning the next Liquor Adjudication Board Meeting, any discussion? There was no discussion by Board Members. Fuke: All those in favor say "Aye." The Board Members voted "Aye." Fuke: Opposed "Nay." There was no opposition by Board Members. The motion was carried unanimously MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 4, 2025 - HILO PAGE 28 OF 29 VI. Announcements (2:49 PM) Meetings of the Liquor Adjudication Board January 15, 2026, 10:00 A.M., Location To Be Determined. February 19, 2026, 10:00 A.M., Location To Be Determined. VII. Adjournment The meeting was adjourned at 2:50 P.M. Hau`oli Sayles Secretary The December 4, 2025, Liquor Adjudication Board meeting minutes were approved as circulated, via email on January 12, 2026, by the Liquor Adjudication Board of the County of Hawaii on February 19, 2026. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 4, 2025 - HILO PAGE 29 OF 29