HomeMy WebLinkAboutCOM 0178.003 2024-2026 J�ZV OFy,;;
C. Kimo Alameda, Ph.D. **1;-1. .• Gerald A.Takase
Mayor :# Director
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William V. Brilhante, Jr.
Managing Director ;�» -.`
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Merrick Nishimoto
Deputy Managing Director County of H awa i`i
Department of Liquor Control
Hilo Lagoon Centre, 101 Aupuni Street,Unit 230,Hilo,Hawaii 96720-4261
(808)961-8218 • Fax(808)961-8684
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E-Mail: cohdlc@hawaiicounty.gov C
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May 8, 2025 _ -t
Honorable Holeka Goro Inaba, Council Chair
and Members of the Hawai'i County Council r
Hawai'i County Council i
25 Aupuni Street
Hilo, Hawai'i 96720
Dear Council Chair Inaba and Council Members,
The Department of Liquor Control (Department) submits this progress report to Audit Report 2025-01
(dated March 3, 2025).1 The audit did not find any laws were broken, did not find any wrongdoing, and
after reviewing travel records did not find expenses related to travel to be unreasonable. However, the
audit did make three recommendations to the Department to help formalize procedure, establish
safeguards to limit liability, and ensure proposed travel is necessary and cost-effective.
Recommendation 1: Establish a Department-Level Travel Policy.
Progress:
As of May 1, 2025, the Liquor Commission reviewed the department-level travel policy. The
Department appreciates the Office of the Auditor providing a travel policy template for our use.
The travel policy will go into effect July 1, 2025.
Recommendation 2: Prioritize Travel on a Need-Based and Role Specific Framework.
Progress:
As stated above, the Department established a department-level travel policy. This tailored
guidance recognizes the Department's role in a highly specialized regulatory environment and
will assist the Department remain consistent with County-wide administrative policies and
procedures it has been following. As published on pages 32-34 of Audit Report 2025-01 (March
3, 2025),the Department has and will continue to prioritize travel based on multiple factors.
This includes factors such as need and role framework.
Comm. �•
Ref. To:
1 This progress report is submitted pursuant to Resolution 548-24(Draft 2). Ref. Dote _ 1 2 2025
Hawaii County is an Equal Opportunity Provider and Employer
Chair Inaba and Members of County Council
Page -2-
May 8, 2025
Recommendation 5a: Limit Attendance to Less than Quorum During Travel. When a
larger party is deemed necessary, the Department should
coordinate with the Office of the Corporation Counsel to issue an
event specific reminder to Board and Commission members not to
discuss board business.
Recommendation 5b: Provide Sunshine Law and Ethics training to all members.
Progress:
The Department coordinated with the Office of the Corporation Counsel and the Office of the
Auditor in 2024. The Office of the Corporation Counsel will provide reminders to Board and
Commission members not to discuss board business. Additionally, recommendation 5B is the
direct result of a response from the Department of Liquor Control and the Office of the
Corporation Counsel and was re-implemented in 2024.
If there are any questions or concerns about this progress report,please feel free to contact me.
Respectfully,
era d Takase
ctor
cc: C. Kima Alameda PHD., Mayor
William V. Brilhante Jr., Managing Director
Diane Nakagawa, Finance Director
Jon Henricks, County Clerk
Wil Okabe, Chair Liquor Commission
Sidney Fuke, Chair Liquor Adjudication Board
Tyler J. Benner, Legislative Auditor
TITLE:COUNTY OF HAWAI'I, DEPARTMENT OF LIQUOR CONTROL TRAVEL POLICY
EFFECTIVE DATE:[To be filled]
REVISED EFFECTIVE DATE: [To be filled]
1.0 GENERAL
1.1 Purpose
The County of Hawai'i Department of Liquor Control (DLC or Department) operates in a
highly specialized regulatory environment that requires personnel (staff, Liquor
Commissioners, Liquor Adjudication Board Members, volunteers) to engage in training,
conferences, inter-agency collaboration,and professional development.
The DLC follows existing,overarching,County travel policies,taking into account applicable
State and County laws and County guidelines. Based upon the DLC's highly specialized role,
there are unique considerations as follows:
Licensing/Regulatory/Enforcement Training Needs: Personnel must remain informed
on evolving federal, state, county, and international liquor laws,enforcement strategies,
and best practices, often requiring off-island and out-of-state, travel. Role-specific
training ensures proper alignment of knowledge with assigned duties, especially where
job functions involve enforcement, licensing, adjudication support, or policy creation
and interpretation.
Enforcement Operations: Investigators and enforcement personnel may need to travel
to conduct or coordinate investigations, conduct or coordinate inspections, attend
hearings, or participate in law enforcement operations across the island, on other
islands,out of state,and across jurisdictions.
Commission and Board Participation: Liquor Commission and Liquor Adjudication
Board Members may need to attend legally mandated or recommended training hosted
by external agencies. Open meeting laws necessitate careful consideration to prevent
over-participation and other risks, and to protect the integrity of these bodies and the
individuals participating in travel.
Increased Accountability: Establishing a formal policy assists in minimizing risks,
promotes transparency, and ensures compliance with County fiscal guidelines.
The purpose of this Department-level policy is to provide tailored guidance while remaining
consistent with County-wide administrative policies and procedures.
Page 1 of 11
1.2 Table of Contents
1.0 GENERAL
2.0 DEPARTMENTS/DIVISIONS AFFECTED
3.0 REFERENCES
4.0 DEFINITIONS
5.0 POLICY
6.0 PROCEDURE
7.0 RESPONSIBILITIES
8.0 APPENDICES
2.0 DEPARTMENTS/DIVISIONS AFFECTED
This policy and procedure shall apply to all personnel of the County of Hawaii Department
of Liquor Control,including staff,Members of the Liquor Commission,Members of the Liquor
Adjudication Board, attorneys assigned to the Department, and volunteers engaged in
official business that requires travel. Other departments may refer to this policy for best
practices.
All travel must comply with applicable County policies and procedures, and it is the
responsibility of the traveler to ensure compliance with all relevant travel policies.
3.0 REFERENCES
Hawai'i Revised Statutes(HRS)Chapter 281 provides the statewide regulatory framework for
intoxicating liquor. Other sections of the HRS as applicable.
County of Hawaii Charter — Provides the structural framework for County departments,
including provisions governing the Department of Liquor Control, the Liquor Commission,
and the Liquor Adjudication Board. Sections 7-3.1 through 7-3.5 define the authority, roles,
and responsibilities of the department and its oversight bodies.
Hawaii County Code—Contains the codified laws of the County, including Article 16 which
governs travel,departmental authority,and fiscal responsibility.
County of Hawaii Accounting Manual — (p.103.1) Sets expectations for internal controls,
documentation, authorization of transactions, and accounting integrity. Emphasizes
management's duty to maintain effective systems of internal controls over assets,
expenditures,and reporting.
Hawaii County Vehicle Use Policy - Establishes the appropriate use of County vehicles,
which applies to departmental travel activities.
County of Hawaii Purchasing Card Guidelines-Regulates allowable expenses, use of
County-issued credit cards,and procurement practices during travel.
Page 2 of 11
Collective Bargaining Agreements(CBA)—When applicable,travel authorizations and
reimbursements are also subject to the terms negotiated under relevant public sector union
agreements.
4.0 DEFINITIONS
Authorized Travel Expenses: Expenses incurred in the course of approved official business,
which may include airfare, lodging, meals,transportation, mileage, registration fees, business-
related communications,and incidental expenses such as parking and tips.These must conform
with the Hawaii County Code and are subject to procedural oversight by the Director of Finance.
Board Members:Members of the Liquor Adjudication Board.
Commissioners:Members of the Liquor Commission.
Department: The County of Hawai'i Department of Liquor Control, also referred to as DLC or
Department.
Department Head:The Director of Liquor Control(or designee). The individual responsible for
assuring that travel under their purview is necessary, properly documented,and consistent with
budget availability. The department head may also delegate approval authority as permitted
under County rules.
Meal Allowance: Reimbursement for meals when travel is required for official business,
particularly when overnight travel or out-of-district travel occurs. Rates and eligibility are
governed by the County Code and collective bargaining agreements,with receipts or affidavits
typically required.
Personnel: Employees and staff of the County of Hawaii Department of Liquor Control,
Members of the Liquor Commission, Members of the Liquor Adjudication Board, attorneys
assigned to the Department,and volunteers
Travel Status: The conditions under which County personnel, including officers, employees,
members of boards, committees, commissions, and volunteers are deemed to be conducting
official business away from their regular place of business and while traveling to and from such
official business locations.
Travel Authorization:The required approval process for all in-State and out-of-State travel. In-
State travel for County employees must be approved by the Mayor (or designee); out-of-State
travel requires a written request and an itinerary and must be approved bythe Mayor(or designee)
for executive branch personnel.Travel authorization ensures that the trip is necessary,expenses
are reasonable,and funds are available.
Page 3 of 11
5.0 POLICY
5.1 Policy Statement
The County of Hawaii Department of Liquor Control shall reimburse reasonable and
necessary travel expenses incurred by its employees, Commissioners, or Adjudication
Board members in the performance of official business, in accordance with Article 16 of
the Hawaii County Code. All travel must be pre-approved, comply with applicable
County policies and procedures,and be conducted in a cost-effective manner consistent
with the County's fiduciary responsibilities.
Travel shall only be approved when there is a public purpose and alignment with official
duties. The department shall ensure that travel is justified, funds are available, and
expenses are appropriate and reasonable under the circumstances.
5.2 Payment of Travel Expenses
5.2.1 Authorization for Travel
Travel will comply with applicable County policies and procedures. In-State travel must
be approved by the Mayor or designee, while out-of-State travel must be requested in
writing, include a travel itinerary, and be approved by the Mayor or designee. The
Department Head is responsible for assuring the necessity of travel, the availability of
funds,and the appropriateness of anticipated expenses.
Alt travelers must receive travel authorization prior to incurring any expense or making
travel arrangements. Travel for training purposes must also conform with the County's
training policies.
5.2.2 Length of Travel Expense Payable
Travel time is generally limited to the time reasonably required to conduct official
business. Documentation supporting the duration and nature of the business (e.g.,
agenda or itinerary)must be attached to the travel request. Personal travel or extensions
unrelated to official business will not be reimbursed.
5.2.3 County of Hawaii Purchasing Card(PCard)
A County of Hawaii Purchasing Card may be issued to employees. In addition to other
authorized Pcard uses, the Pcard may be used for the following types of travel-related
expenses when properly approved and necessary:
Registrations involving travel
Airfare
Hotel and/or other commercial accommodations(including baggage fees)
Car rentals
Taxi, rideshare or other transportation(e.g., Uber,Lyft, public transportation)
Fuel or electric vehicle charging for rental or County vehicles while in travel status
Tolls and ferries
Internet/data service fees
Page 4 of 11
All permissible travel-related purchases must be accompanied by detailed receipts. If
receipts are not available, a Missing Travel Receipt Report must be submitted. Credit
cards may not be used for travel-related purchases except where authorized.
Employees must ensure all purchases comply with this policy and are made in the best
interest of the County. Misuse of the PCard is subject to disciplinary action, including
possible revocation and further consequences.
5.2.4 Airfare&Lodging
Airfare: Economy coach class airfare for most business travel is preferred. First class or
business class airfare is not normally reimbursable and must be pre-approved by the
Department Head, in accordance with Hawaii County Code §§ 2-97 and 2-98, as
applicable. When applicable, employees should select the most cost-effective fare,
taking into account layovers and flight durations.
Baggage fees: Reasonable fees for checked baggage will be reimbursed. Receipts are
required.
Lodging: Lodging expenses are reimbursable when travel requires an overnight stay.The
most economical rate available should be selected. If accompanied by other travelers,
expenses must be proportionally allocated and documented.
Itemized hotel receipts are required. Credit card receipts alone are not sufficient.Travel
sites offering discounts (e.g., Expedia, Priceline) may be used but travelers are
responsible for documenting terms and ensuring cancelation/refund provisions are
honored if necessary.
5.2.5 Rail or Other Commercial Travel
Travel by train or other commercial transportation is permitted when it is the most
practical and economical option.
5.2.6 Meals and Personal Expenses
Meal costs may be reimbursed by per diem or actual expense(including tips),depending
on the traveler's choice. Non-overnight meat allowances are only permitted for inter-
district travel and are capped at specific rates:$5 for breakfast,$8 for lunch,and$15 for
dinner,with time-of-day and distance qualifications.
Receipts or affidavits must be submitted.Excess meal advances must be returned within
five working days after travel completion.
5.2.7 Mileage and Parking
Mileage reimbursement may be approved when a personal vehicle is used for official
business,and County vehicles are not available or practical.Reimbursement shall be at
the highest rate allowed under any collective bargaining agreement.Parking fees are also
allowable with receipts.
Page 5 of 11
5.2.8 Use of County Vehicles
County vehicles shall be used for travel when available and practical. If unavailable,
personal or rental vehicles may be authorized at the Department Head's discretion.
Vehicle use must comply with the County's Vehicle Use Policy.
5.2.9 Rental Cars
Rental car use is permitted when necessary and cost-effective. Costs shall not exceed
$75 per day unless justified. Use for incidental personal needs (e.g., meals) is
acceptable, and insurance must be waived if County coverage applies.
5.2.10 Other Travel-Related Incidentals
Allowable expenses include:
Airport parking
Internet or phone charges used for official business
Registration or secretarial fees
Other expenses relating to the conduct of official business
5.2.11 Other Business Expenses While Traveling
Expenses that support official duties—such as business telephone calls,facility fees,or
incidental costs related to meetings or conferences—are allowable with prior approval
and proper documentation.
5.3 Out of Country Travel
International travel must be pre-approved by the Mayor or designee. A written request
shall include justification, purpose, and itinerary, and be submitted at least 30 days in
advance.Additional County policies may apply for out-of-country travel.
5.4 Unauthorized Expenses
The following are not eligible for reimbursement:
Alcoholic beverages
Room service(unless pre-approved)
Entertainment unrelated to official business
Airline or travel insurance
Personal travel costs or vacation extensions
Duplicate payments
Excessive or unreasonable expenses without written justification
5.6 Penalties for Fraud,Abuse,and Policy Violations
Improper use of public funds, misrepresentation of expenses, or failure to follow this
policy may result in disciplinary action, up to and including termination.Violations may
Page 6 of 11
also be referred to the Office of the County Auditor, Risk Manager, Hawaii Police
Department or Prosecuting Attorney.
5.7 Travel Procedures for Non-Employees
Non-employee travel must be pre-approved and must comply with applicable County
policies. Requests must be submitted in advance. Reimbursements will be processed
only upon submission of itemized receipts and documentation supporting the business
purpose.
6.0 PROCEDURE
6.1 Pre-Travel Authorization Process
I
1. Travel Considerations and Justifications
Travel will take into account operational needs and the duties and responsibilities of the
traveler, as outlined in the Department's Training Justification &Travel Matrix(Appendix
A). This ensures training and travel serve a public purpose and are consistent with the
individuals'role.
2. Initial Approval by Department Head
The Director of Liquor Control(or designee)shall determine:
That travel is necessary for official business,
That funds are available,
That expenses are reasonable and appropriate under the circumstances,
That the employee's participation is appropriate per their role
3. Compliance with Article 16 of the County Code
In-State Travel must be approved by the Mayor (or designee) in accordance with
Hawaii County Code§2-94(a).
Out-of-State Travel requires a written request, an attached itinerary, and prior
approval from the Mayor(or designee).
Training-related travel must also comply with the County's HR-administered training
policy.
4. Open Meeting Law Coordination
For travel involving Commissioners or Board Members:
A quorum check must be conducted to determine if Sunshine Law risks apply.
If a quorum is possible,the Department must consult Corporation Counsel,who will
issue an event-specific legal memorandum.
Page 7 of 11
6.2 Travel Booking and Expense Controls
Once travel is approved,travelers may proceed to book using authorized systems
and vendors,in compliance with County fiscal policies.
If a Pcard is used, its use must follow all Department and County rules,and
purchases must be supported with itemized receipts.
6.3 Post-Travel Documentation
1. Expense Reporting
Within five working days of return,the traveler must submit:
A Certificate of Travel and Claim for Expense to the Department and Director of
Finance,
Receipts or affidavits for reimbursable expenses,and
Repayment of any unused travel advances
2. Written Travel Summary
For out-of-state conferences,training,or workshops,a written report must be submitted
within thirty(30)days of return,discussing the subject matter covered and the benefits of
attendance. It may be an individual or group report.This report must be submitted to the
Mayor. When appropriate,Commissioners and/or Board Members shall work with the
Department Head to place training events attended on future agendas for transparency,
discussion, and information sharing.
If applicable, reports about conferences,training,or workshops for train-the-trainer may
also discuss how it applies to department operations and/or recommended changes or
improvements.
7.0 RESPONSIBILITIES
The Department Head is responsible for oversight and compliance with this policy.Delegated
staff, including supervisors and administrative personnel, are responsible for ensuring pre-
approval, policy compliance,appropriate recordkeeping,and expense reimbursement.
Personnel who travel are accountable for understanding and complying with all applicable
County policies and procedures.
8.0 APPENDICES
Appendix A:Travel Justification&Training Matrix
Page 8 of 11
APPROVED BY:
Corporation Counsel Date
(Form and Legality)
Director—Department of Liquor Control Date
Liquor Commission Chair Qpt`°ra` Date
eeds re
001.1
��aK�ng
Liquor Adjudication Board Chair Date
1
Page 9 of 11
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