HomeMy WebLinkAboutREP FC 509 01/28/1992 REPORT OF THE
'``w COMMITTEE ON FINANCE
Date: January 28, 1992 Re: Comm. 3236
Place: Councilroom
Time: 10 : 00 a.m.
Chairman and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Bill 554, reports
as follows :
The purpose of Bill 554 is to amend Ordinance 91-50, the Operating
Budget for Fiscal Year 1991-92, by appropriating revenues in General
Fund Accounts :
Account No . Source Amount
3609 . 09 Fund Balance Reserved for Liquor $355, 898 . 00
Control
and appropriating same to the following account :
010-251-5251 . 34-341 Refund Liquor License Fees $355, 898 . 00
Communication No. 3236, from Director of Finance William Takaba,
dated January 3 , 1992, transmits Bill 554 to amend Ordinance 91-50
by appropriating revenues of $355, 898 in the Fund Balance Reserved
for Liquor Control account and appropriating it to the Refund Liquor
License Fee expenditure account . States , the appropriation is
requested so that the Department of Liquor Control would be able to
refund excess liquor license fees . Transmits for review appropriate
documentation.
Communication No . 3260, from Janice A. Bibb, Director of Department
of Liquor Control, dated January 24, 1992, states that the Liquor
Commission adopted Rule 3-7, effective December 29 , 1991, which now
permits the Department of Liquor Control to effect refunds for
license years 1986-1991 (five years) .
The Liquor Commission approved the refund of only part of the fund
balance. They intended to keep a reserve account of approximately
$141, 000 which they believed they needed as a contingency. Your
Committee questioned the legality of a reserve account since State
Statute Section 281-17 . 5, HRS, as amended, states that any fees in
excess of operating expenses shall be refunded to licensees .
Mrs . Bibb stated that the excluded revenues would be considered at
the Commission level . Your Committee requested that the Office of
Corporation Counsel research the definition of funds and fees as
well as whether the Council can initiate the return of all funds to
licensees .
FC REPORT Noy 509
ADOPTED: FEB 1 9 1992
FC- 509 Page 2 January 28, 1992
Your Committee on Finance is in accord with the intent and purpose
of Bill 554 and recommends that it pass first reading after
reviewing Corporation Counsel ' s recommendations .
/`—
HELENE H. HALE, CHAIRWOMAN
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1 ? ief.tt_Agm, limi.,.._ROBERT H. MAKUAKANE, VICE CHR. BRIA J. E LIMA, MBER
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HARRY S. UDDLE, MEMBER SPE CER K. SCHUTTE, MEMBER
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