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Greenwell: Second. <br />Mr. Lopez moved to approve the Report of Gross Revenues for <br />Class 2 restaurant licensees regarding requirement that thirty <br />percent (30%) of gross revenues are derived from food sales <br />pursuant to Rule 4-7-A-5 and 3-1-C, submitted by the Department <br />of Liquor Control of the County of Hawai`i; seconded by <br />Mr. Greenwell. <br />Nahale-a: Thank you. So moved and seconded. Any questions? <br />Lopez: I see there's two that did not meet their thirty percent. <br />Gonzalez: Yes. <br />Lopez: So, how do we treat them? Are they part of this approval? <br />Gonzalez: Basically, the action is to accept the report. So, within the report there <br />are two that didn't meet and the Department works with those Licensees to see how <br />they want to act. One of the options is they lose their restaurant designation and <br />become a dispenser. <br />Lopez: Okay. But that's independent of this action? <br />Gonzalez: Correct. <br />Takase: I guess I wasn't sure. So, Laverne's fell below, and King's Course just got a <br />new person to run the restaurant for them. They were just holding the liquor license as a <br />"remnant" for the golf course in case they have special events. So we have spoken with <br />both of them and they realize they have not met the requirement. They will lose their <br />restaurant designation, but they can remain operating as a Dispenser General. In effect, <br />not much difference from what they're doing, since they're not selling much food anyway. <br />Basically, the difference between a Restaurant license and a Dispenser General is, one, <br />they're going to be allowed to cater. That's probably the primary difference for them. <br />Secondly, is when they transfer their license, Dispenser Generals have to go through the <br />whole process of mailing notifications, etc. That was, not so much for these Licensees, <br />but it was done to slow down the Korean bar trade in Honolulu. They required all the <br />Dispenser Generals to go through the whole licensing process when they transfer rather <br />than, as we see when we do transfers there's no written notification to any surrounding <br />property owners. There's just notice by publication. That's going to be the two primary <br />differences between holding a Restaurant license and a Dispenser General. Now, if they <br />come back and they do meet the requirements, they can again re -apply for a Restaurant <br />license. We've spoken to them. They know what they have to do. <br />June 7, 2018 — LIQUOR COMMISSION MINUTES 32 <br />