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HomeMy WebLinkAbout2023-04-20 Liquor Adjudication Board MinutesCOUNTY OF HAWAI`I DEPARTMENT OF LIQUOR CONTROL LIQUOR ADJUDICATION BOARD MINUTES — APRIL 20, 2023 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 Vice Chair Arthur Taniguchi at 10:01 A.M., in the Meeting Room, Department of Liquor Control, Hilo Lagoon Centre, 101 Aupuni Street, Unit 230, Hilo, Hawaii. The following were present and constituted a quorum: Board Members: Sidney Fuke, Chair (came in at 10:10 AM) Arthur Taniguchi, Vice Chair Michael Hughes, Board Member Dawn Raymond, Board Member Absent and Excused: Howard Kelly, Board Member Gerald Takase, Director Others Present: Brandon Gonzalez, Administrative Officer Dakota Frenz, Deputy Corporation Counsel (Department/Prosecutor) Sherilyn Tavares, Deputy Corporation Counsel (Board) Hau`oli Sayles, Board Secretary Taniguchi: We'll start off by introducing our Board Members as well as staff, starting off with Dawn. Raymond: Dawn Raymond, Board Member. Hughes: Mike Hughes, Board Member. Taniguchi: Art Taniguchi, Board Member. Tavares: Sheri Tavares, Deputy Corporation Counsel. Sayles: Hau`oli Sayles, Board Secretary. Gonzalez: Good morning, Brandon Gonzalez, Administrative Officer. Frenz: Good morning, Deputy Corporation Counsel Cody Frenz, on behalf of the Liquor Department. I'd also note that absent and excused are Howard Kelly, Board Member, and Director Gerald Takase, for the record. Hawaii County is an Equal Opportunity Provider and Employer Taniguchi: Just for the record, Chair Fuke will be a little late, he had to step out, but he will be joining us in a few minutes. First of all, if I can ask all of you to put your cell phones on airplane mode, vibrate, or silent, I'd appreciate it. II. Approval of Minutes —March 16, 2023 (10:02 AM) Taniguchi: It was circulated via email on April 13t", may I have a motion to approve? Hughes: So moved. Raymond: Just to make note, I was not in March 16t"'s meeting, but I did have a chance to look over the minutes, and it looked in order, so I will be in support of approving the minutes, and I second. Board Member Hughes moved to approve the March 16, 2023, meeting minutes as circulated; Seconded by Board Member Raymond. Taniguchi: Dawn is joining us, she is the former Chair of the Liquor Commission. So, motion is moved and seconded. Any discussion? There was no discussion by Board Members. Taniguchi: If not, all in favor say "Aye." The Board Members voted "Aye." Taniguchi: Opposed, "Nay." There was no opposition by Board Members. Taniguchi: Motion carried. The motion was carried unanimously. Taniguchi: Thank you very much. Also, I'd like to move Item No. 3 up to No. 2. So, we'll go No. 1, then No. 3. III. Hearings (10:02 AM) 1. CASE NO. 2023-004 (10:02 AM) In the Matter of the Accusation Against Mauna Kea Resort LLC, dba Mauna Kea Beach Hotel, dba Plumeria Market, located at 62-100 Kauna`oa Drive, Kamuela, Hawaii. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, APRIL 20, 2023 - HILO PAGE 2 OF 25 COUNT 1 Informal Hearing (Alternative II) on violation of Rule 4-6(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 failure to notify the Liquor Commission of the Department of Liquor Control in writing within sixty (60) days of a change in officer or director. COUNT 2 Contested Hearing (Alternative III) on violation of Rule 4-6(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 failure to notify the Liquor Commission of the Department of Liquor Control in writing within sixty (60) days of a change in officer or director. Robert Ueoka, Esq., Authorized Agent, and Todd Oldham, Director of Food and Beverage, were present in person. Taniguchi: I believe Mr. Ueoka is here representing them. Can you identify yourself and your relationship to the business, please? Ueoka: Good morning, Mr. Vice Chair, Members of the Board, Mr. Gonzalez, Robert Ueoka, on behalf of Mauna Kea Beach Hotel. Present to my right, Mr. Todd Oldham, he's the Director of Food and Beverage at the Mauna Kea Beach Hotel. Taniguchi: Thank you. Ms. Frenz, can you please read the Complaint and Accusation, and the Answer to the Complaint? Frenz: Yes, Mr. Chair. The Complaint and Accusation in this case states multiple counts, Counts 1 and 2, however the Liquor Department is dismissing Count 2 of the Complaint and Accusation, and only proceeding with Count 1, which states the following, on or about the 24th day of May 2022, in the County and State of Hawaii, the Licensee, Mauna Kea Resort LLC, dba Mauna Kea Beach Hotel, dba Plumeria Market, failed to notify the Liquor Commission of the Department of Liquor Control in writing within sixty (60) days of January 1, 2022, of the appointment of Shigeki Yamane, as President; in violation of Rule 4-6(B) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii. Vice Chair, this is an informal hearing, the Licensee has selected Alternative II, admitting to the allegation and waiving its right to a hearing and appeal, but they did request an informal hearing to present some circumstances surrounding the violation. Taniguchi: Thank you. May I have a motion to find the Licensee in violation of the charge? Hughes: So moved. Raymond: Second. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, APRIL 20, 2023 - HILO PAGE 3 OF 25 Board Member Hughes moved to find the Licensee in Case No. 2023-004 for Count 1, in violation of Rule 4-6(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 failure to notify the Liquor Commission of the Department of Liquor Control in writing within sixty (60) days of a change in officer or director; Count 2 was dismissed; Seconded by Board Member Raymond. Taniguchi: Moved and seconded, any discussion? There was no discussion by Board Members. Taniguchi: If not, all those in favor vote by saying "Aye." The Board Members voted "Aye." Taniguchi: Opposed, "Nay." There was no opposition by Board Members. Taniguchi: Motion carried. The motion was carried unanimously Taniguchi: Prior to assessing the penalty, you may proceed with your presentation of the circumstances surrounding the violation. Ueoka: Thank you, Mr. Vice Chair. This occurred because of a corporate reorganization that we had, we were delinquent on the 60-day requirement deadline. That subsequent appointment, we were on time with that, but on this one, it fell through, it was part of a corporate reorganization. Taniguchi: Any Board Members have any questions? There was no discussion by Board Members. Taniguchi: Okay, Ms. Frenz, please provide the Department's recommendation for the penalty in this case. Frenz: Yes, Vice Chair. In this case, the Department is recommending a $100.00 fine for a few reasons. First, as this Board will hear throughout today's proceedings, Liquor Adjudication Board Rule 1.12 specifically requires and calls out that the fine violation if there are no priors is a $100.00 fine. In this case, there are no priors within the last 5 years, the Licensee took responsibility for the violation, based on that we are seeking a $100.00 fine that will be payable within 30 days of receipt of the order in this case. Taniguchi: Do you have any further comments? Ueoka: No further comment, we agree with the assessment, thank you for your consideration. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, APRIL 20, 2023 - HILO PAGE 4 OF 25 Taniguchi: May I have a motion on the penalty? Hughes: So moved. Raymond: Second. Board Member Hughes moved to accept the recommendation by the Department for penalty in Case No. 2023-004, for Count 1, that the Licensee be assessed a fine pursuant to Rule 1.12, in the amount of ONE HUNDRED AND NO/100 DOLLARS ($100.00), to be paid within 30 days upon receipt of the Decision and Order, payable to the Department of Liquor Control; Count 2 was dismissed; Seconded by Board Member Raymond. Taniguchi: Moved and seconded. Any discussion? There was no discussion by Board Members. Taniguchi: All those in favor signify by saying "Aye." The Board Members voted "Aye." Taniguchi: Opposed, "Nay." There was no opposition by Board Members. Taniguchi: Motion carried. The motion was carried unanimously Taniguchi: A Decision and Order will be served to the Licensee which will be payable within 30 days of its receipt. The next item was taken out of order 3. CASE NO. 2023-006 (10:08 AM) In the Matter of the Accusation Against Big Island Brewing LLC, dba Hilo Beer Garden, located at 421 Makalika Street, Hilo, Hawaii. Informal Hearing (Alternative IV) on violation of Rule 3-6(A)(1) 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 an Initial Gross Liquor Sales Report by the deadline of January 31, 2023. Taniguchi: Ms. Frenz, please read the Complaint and Accusation, and the Answer to the Complaint. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, APRIL 20, 2023 - HILO PAGE 5 OF 25 Frenz: Vice Chair, in this case, given that the Licensee has selected Alternative IV, admitting to the allegation, stipulating and being receptive to the disciplinary action in this case, I ask to waive formal reading of the charge. Taniguchi: May I have a motion to find the Licensee in violation of the charge? Frenz: Sorry Vice Chair, just to clarify, I'm only asking at this time to waive reading of the formal charge because they've admitted and are not opposing disciplinary action, so just asking to waive reading so I don't need to read the complaint. Taniguchi: Okay. So, may I have a motion to find the Licensee in violation of the charge? Hughes: So moved. Raymond: Second. Board Member Hughes moved to find the Licensee in Case No. 2023-006, in violation of Rule 3-6(A)(1) 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 an Initial Gross Liquor Sales Report by the deadline of January 31, 2023; Seconded by Board Member Raymond. Taniguchi: Any discussion? There was no discussion by Board Members. Taniguchi: If not, all those in favor signify by saying "Aye." The Board Members voted "Aye." Taniguchi: Opposed, "Nay." There was no opposition by Board Members. Taniguchi: Motion carried unanimously. The motion was carried unanimously. Taniguchi: Do Board Members have any questions of the Department? There was no discussion by Board Members. Taniguchi: Ms. Frenz, please provide the Department's recommendation for penalty in this case. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, APRIL 20, 2023 - HILO PAGE 6 OF 25 Frenz: Yes, Vice Chair. As I indicated earlier, Rule 1.12 requires the $100.00 fine, in this case, the Licensee has already paid that $100.00 fine that was received on March 31 St, 2023. They have no prior violations of this nature, they were, just for the Board's information, in this case the Licensee was sent two email reminders prior to the deadline to submit their required information, they failed to do so, $100.00 fine paid in full already. Taniguchi: Okay, so may I have a motion on the penalty? Hughes: So moved. Raymond: Second. Board Member Hughes moved to accept the recommendation by the Department for penalty in Case No. 2023-006, 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 March 31, 2023; Seconded by Board Member Raymond. Taniguchi: Any discussion? There was no discussion by Board Members. Taniguchi: If not, all those in favor signify by saying "Aye." The Board Members voted "Aye." Taniguchi: Opposed, "Nay." There was no opposition by Board Members. Taniguchi: Motion carried unanimously. The motion was carried unanimously. Hughes: Question, did they eventually submit their information? Gonzalez: Yes. We received it on Wednesday, February 8, at approximately 2:49 p.m. Hughes: I'm just wondering if those people that were reminded over and over, did they eventually do it? Frenz: For everyone today, they had eventually complied, yes. Taniguchi: A Decision and Order will be served to the Licensee, indicating the penalty and that payment was received. Our Chair is back, Mr. Fuke, he will resume the meeting. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, APRIL 20, 2023 - HILO PAGE 7 OF 25 Chair Relinquished - Chair Sidney Fuke joined the meeting at 10:10 AM Fuke: Thank you very much, Mr. Vice Chair. Returned to the order of business 2. CASE NO. 2023-005 (10:11 AM) In the utter of the Accusation Against TTG, LLC, dba Sunset Terrace, located at the Kona Coast Resort, Recreation Building 22A, 78-6842 Ali`i Drive, Kailua-Kona, Hawaii. Informal Hearing (Alternative II) on violation of Rule 5-2 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 have a person duly approved by the Department of Liquor Control as a Person In Active Charge of the premises at all times while the premises was open for business to provide supervision in the exercise of the liquor license in accordance with the liquor laws. Jonathan Alford, Co-owner, was not present/did not show up. Fuke: Is the representative here? Gonzalez: Mr. Chair, I'm going to double check the lobby. Fuke: Thank you. Gonzalez: Thank you, Mr. Chair. At 10:11 a.m., I made three calls for Jonathan Alford, the representative for the licensee, there was no response. Fuke: Thank you very much our designated Sergeant at Arms. And as much as the applicant has already plead out, do Board Members have any objections to waiving the reading of the violation? Frenz: No, not from the Department, thank you, Chair. Fuke: Okay, thank you very much. So then, may I have a motion to find the Licensee in violation of the charge? Hughes: So moved. Taniguchi: Second. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, APRIL 20, 2023 - HILO PAGE 8 OF 25 Board Member Hughes moved to find the Licensee in Case No. 2023-005, in violation of Rule 5-2 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 have a person duly approved by the Department of Liquor Control as a Person In Active Charge of the premises at all times while the premises was open for business to provide supervision in the exercise of the liquor license in accordance with the liquor laws; Seconded by Board Member Taniguchi. Fuke: It's been moved and seconded, any discussion among the Board Members? 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: Unanimously carried. The motion was carried unanimously Fuke: Okay, so the licensee is not here. Gonzalez: Mr. Chair, as noted, this is an informal hearing, the Licensee has already selected Alternative II, admitting to the allegation, they waived their right to a hearing and appeal, but they requested the informal hearing to present circumstances surrounding the violation. I did make three calls to see if they were present, they are not present. Since they already waived their right to a hearing and appeal, and we are still following the due process, the Department is okay to proceed without them present, and they were scheduled to start at 10:00 a.m., and will note that the time now is 10:14 a.m. Fuke: Thank you very much for the clarification. Any Board Members have questions of the Department? There was no discussion by Board Members. Fuke: Okay, Ms. Frenz, could you please read the recommendation and penalty for this case? Frenz: Yes, Chair. In this case, the Department is recommending a $1,000.00 fine. Of that $1,000.00 fine, we recommend that you suspend $750.00 for a period of one year provided there are no similar law violations of this nature. The $250.00 would be due and owed to the Department within 30 days of their receipt of the order in this case. They have no previous violations of this nature, they did take responsibility, and the penalty that the Department is recommending is in line with other similarly situated licensees of the same violation. In this case, when an Investigator went to the establishment, there were two people working behind MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, APRIL 20, 2023 - HILO PAGE 9 OF 25 the bar, and two guests at the counter. No one had permission to be in active charge for that location, so they were required to eventually shut her down and close up. They had taken responsibility in this case, so we do recommend the $1,000.00 fine with $750.00 suspended. Fuke: Thank you very much, Ms. Frenz, for the explanation. May I have a motion on the penalty? Taniguchi: So moved. Raymond: Second. Mr. Taniguchi moved to accept the recommendation by the Department for penalty in Case No. 2023-005, that the Licensee be assessed a fine in the amount of ONE THOUSAND AND NO/100 DOLLARS ($1,000.00), with SEVEN HUNDRED -FIFTY AND NO/100 DOLLARS ($750.00) to be suspended for one (1) year from the date of service of the Decision and Order, on the condition that there are no similar violations of Rule 5-2 within that period, and that TWO HUNDRED -FIFTY AND NO/100 DOLLARS ($250.00) is to be paid within 30 days upon receipt of the Decision and Order, payable to the Department of Liquor Control; Seconded by Mr. Raymond. Fuke: It's been moved and seconded. Any discussion among the Board Members on this? Taniguchi: Yes, I have a question. If the person behind serving drinks was there but not designated as a person in charge, so they have a card but they're not in charge, what would the penalty be? Or would there be a penalty or violation? Gonzalez: There would still be a violation, the penalty would be similar, more of the fine could be suspended, more than $750.00 suspended depending on the facts and circumstances. But rather than speculating, from the Department's perspective, the workers that were there were deceiving the Investigator, which made the situation worse. And so, that was taken into account as well during the course of the investigation, but we gave them credit. They're a first time licensee with this type of thing, and we're pretty sure that they won't make this mistake again. Hughes: Did they do anything corrective? Gonzalez: Yes they did, they added more staff and sent them to the training class to add on their list of Persons in Active Charge. Frenz: And hopefully they reminded their employees not to be dishonest and try to claim to take a class at a location where the classes are not even held. Fuke: Thank you very much for the explanation and the questions. Now, any more dialogue on this matter? There was no further discussion by Board Members. Fuke: If not, all those in favor of the motion as recommended by Ms. Frenz, say "Aye. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, APRIL 20, 2023 - HILO PAGE 10 OF 25 The Board Members voted "Aye." Fuke: All those opposed, "Nay." There was no opposition by Board Members. Fuke: The motion is unanimously carried. The motion was carried unanimously Fuke: The Department will be sending out a Decision and Order to the Licensee. 4. CASE NO. 2023-007 (10:17 AM) In the Matter of the Accusation Against FORC LLC, dba FORC, located at 65-1214 Lindsey Road, Kamuela, Hawaii. Informal Hearing (Alternative IV) on violation of Rule 3-6(A)(1) 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 an Initial Gross Liquor Sales Report by the deadline of January 31, 2023. Fuke: Ms. Frenz, again, in this situation here, any Board Members have any disagreement or objections to the waiving of reading? Frenz: The Department would seek waive reading on this one and all upcoming ones, they've all selected the discipline to be imposed and agreed. Fuke: Thank you very much. May I have a motion to find the Licensee in violation of the charge? Raymond: So moved. Taniguchi: Second. Board Member Raymond moved to find the Licensee in Case No. 2023-007, in violation of Rule 3-6(A)(1) 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 an Initial Gross Liquor Sales Report by the deadline of January 31, 2023; Seconded by Board Member Taniguchi. Fuke: It's been moved and seconded to be found in violation. Any discussion from the Board Members? There was no discussion by Board Members. Fuke: If not, all those in favor please say "Aye." MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, APRIL 20, 2023 - HILO PAGE 11 OF 25 The Board Members voted "Aye." Fuke: Opposed, "Nay." There was no opposition by Board Members. Fuke: The motion is unanimously carried. The motion was carried unanimously. Fuke: Board Members have any questions of the Department? There was no discussion by Board Members. Fuke: If not, Ms. Frenz, could you please provide the Department's recommendation for penalty? Frenz: Yes, Chair. Pursuant to Rule 1.12, it's a $100.00 fine. This particular owner has no priors, they did take responsibility. They received two email reminders prior to the deadline, and they still failed to submit timely. They have since subsequently submitted the information as required, seeking a $100.00 fine, and they did make full payment on April 4, 2023. Fuke: Thank you very much. May I have a motion on the penalty? Raymond: So moved. Hughes: Second. Board Member Raymond moved to accept the recommendation by the Department for penalty in Case No. 2023-007, 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 April 4, 2023; Seconded by Board Member Hughes. Fuke: It's been moved and seconded. Any discussion among the Board Members? There was no discussion by Board Members. Fuke: If not, all those in favor of the motion, please say "Aye." The Board Members voted "Aye." Fuke: Opposed, "Nay." There was no opposition by Board Members. Fuke: Unanimously carried. The motion was carried unanimously. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, APRIL 20, 2023 - HILO PAGE 12 OF 25 Fuke: A Decision and Order will be served to the Licensee, indicating the penalty and that payment was received. 5. CASE NO. 2023-008 (10:18 AM) n the Matter of the Accusation Against Kim An h 88, Inc., d ba Pho Kim An (Waimea), located at the Waimea Center, 65-1158 Mamalahoa Highway, Suite 9, Kamuela, Hawaii. Informal Hearing (Alternative IV) on violation of Rule 3-6(A)(1) 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 an Initial Gross Liquor Sales Report by the deadline of January 31, 2023. Frenz: Chair, request waive reading of the charge, they've selected Alternative IV, admitting and stipulating. Fuke: Thank you very much. May I have a motion to find the Licensee in violation of the charge? Taniguchi: So moved. Raymond: Second. Board Member Taniguchi moved to find the Licensee in Case No. 2023-008, in violation of Rule 3-6(A)(1) 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 an Initial Gross Liquor Sales Report by the deadline of January 31, 2023; Seconded by Board Member Raymond. Fuke: It's been moved and seconded. Discussion among Board Members? There was no discussion by Board Members. Fuke: None, if not, all those in favor of the motion please say "Aye." The Board Members voted "Aye." Fuke: Opposed, "Nay." There was no opposition by Board Members. Fuke: Unanimously carried. The motion was carried unanimously. Frenz: I'd like to make a recommendation. Any questions for the Department? MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, APRIL 20, 2023 - HILO PAGE 13 OF 25 Fuke: I skipped a page, I'm sorry. Ms. Frenz, will you please provide the Department's recommendation for penalty in this case? Frenz: Yes, sure, are there no questions, just for the record, for the Department first? No questions? There was no discussion by Board Members. Fuke: No questions. Frenz: Okay, great. In this case Chair, we are again seeking a $100.00 fine for LAB (Liquor Adjudication Board) Rule 1.12, this owner has no prior violations of this nature, they did take responsibility. Again, likewise, they received two email reminders prior to the deadline, they failed to submit timely, they have subsequently submitted the information. They did submit payment of $100.00 on April 4, 2023. Fuke: Thank you very much. May I have a motion on the penalty, please? Hughes: So moved. Taniguchi: Second. Board Member Hughes moved to accept the recommendation by the Department for penalty in Case No. 2023-008, 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 April 4, 2023; Seconded by Board Member Taniguchi. Fuke: Any discussion among the Board Members on the 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, "Nay." There was no opposition by Board Members. Fuke: The motion is unanimously carried. The motion was carried unanimously. Fuke: A Decision and Order will be served to the Licensee, indicating the penalty and that the payment was received. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, APRIL 20, 2023 - HILO PAGE 14 OF 25 6. CASE NO. 2023-009 (10:21 AM) In the Matter of the Accusation Against Grand 88, LLC, dba Pho Kim An, located at the Kopiko Plaza, 75-5660 Kopiko Street, Suite D1, Kailua-Kona, Hawaii. Informal Hearing (Alternative IV) on violation of Rule 3-6(A)(1) 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 an Initial Gross Liquor Sales Report by the deadline of January 31, 2023. Frenz: Request waive reading of the charge, Chair. Fuke: Okay, thank you very much, reading of the charge is waived. May I have a motion to find the Licensee in violation of the charge? Raymond: So moved. Taniguchi: Second. Board Member Raymond moved to find the Licensee in Case No. 2023-009, in violation of Rule 3-6(A)(1) 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 an Initial Gross Liquor Sales Report by the deadline of January 31, 2023; Seconded by Board Member Taniguchi. Fuke: It's been moved and seconded. Any discussion among the Board Members on the charge? 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: Unanimously carried. The motion was carried unanimously. Fuke: Okay, any Board Members have questions of the Department? There was no discussion by Board Members. Fuke: If not, Ms. Frenz, could you please read the recommendation for penalty? MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, APRIL 20, 2023 - HILO PAGE 15 OF 25 Frenz: As in previous licensees for this very violation, this licensee received two email reminders prior to the deadline, failed to submit the information timely, they have subsequently turned that information into the Liquor Department. We are recommending a $100.00 fine, they've already made payment in full on April 4, 2023. They have no prior violations of this nature, and it's pursuant to Rule 1.12 of the Liquor Adjudication Board rules. Fuke: Thank you very much. May I have a motion on the penalty? Hughes: So moved. Taniguchi: Second. Board Member Hughes moved to accept the recommendation by the Department for penalty in Case No. 2023-009, 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 April 4, 2023; Seconded by Board Member Taniguchi. Fuke: It's been moved and seconded. Any discussion among Board Members? 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: A Decision and Order will be served to the Licensee, indicating the penalty and that payment was received. 7. CASE NO. 2023-010 (10:22 AM) In the Matter of the Accusation Against Lam Yim Sin Corporation, dba Hong Kong Chop Suey, located at 82-6066 Mamalahoa Highway, Captain Cook, Hawaii. Informal Hearing (Alternative IV) on violation of Rule 3-6(A)(1) 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 an Initial Gross Liquor Sales Report by the deadline of January 31, 2023. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, APRIL 20, 2023 - HILO PAGE 16 OF 25 Frenz: Chair, we request waive reading of the charge, the Licensee selected Alternative IV. Fuke: Thank you very much, reading of the charge will be waived. May I have 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. 2023-010, in violation of Rule 3-6(A)(1) 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 an Initial Gross Liquor Sales Report by the deadline of January 31, 2023; Seconded by Board Member Hughes. Fuke: It's been moved and seconded. Any discussion among the Board Members on the charge? 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: Members have any questions of the Department? There was no discussion by Board Members. Fuke: Ms. Frenz, could you please read the Department's recommendation? Frenz: Yes, Chair, in this case again, we're recommending a $100-00 fine, they've made payment in full as of April 12, 2023. LAB (Liquor Adjudication Board) Rule 1.12 control in this situation yet again, they did in fact receive two email reminders, failed to submit timely but they have since done so. They have no prior law violations of this nature, and they have taken responsibility. Fuke: Thank you very much. May I have a motion on the penalty? Taniguchi: So moved. Hughes: Second. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, APRIL 20, 2023 - HILO PAGE 17 OF 25 Board Member Taniguchi moved to accept the recommendation by the Department for penalty in Case No. 2023-010, 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 April 12, 2023; Seconded by Board Member Hughes. Fuke: Okay, moved and seconded, discussion among Board Members? There was no discussion by Board Members. Fuke: None, 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: A Decision and Order will be served to the Licensee, indicating the penalty and that payment was received. 8. CASE NO. 2023-011 (10:24 AM) In the Matter of the Accusation Against Black Rock Pizza, LLC, dba Black Rock Pizza, located at 82-6127 Mamalahoa Highway, #3, Captain Cook, Hawaii. Informal Hearing (Alternative IV) on violation of Rule 3-6(A)(1) 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 an Initial Gross Liquor Sales Report by the deadline of January 31, 2023. Frenz: Request waive reading of the Complaint and Accusation in this case because the Licensee has selected Alternative IV, Chair. Fuke: Thank you very much. May I have a motion to find the Licensee in violation of the charge? Raymond: So moved. Hughes: Second. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, APRIL 20, 2023 - HILO PAGE 18 OF 25 Board Member Raymond moved to find the Licensee in Case No. 2023-011, in violation of Rule 3-6(A)(1) 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 an Initial Gross Liquor Sales Report by the deadline of January 31, 2023; Seconded by Board Member Hughes. Fuke: It's been moved and seconded, that the Licensee be found in violation of the charge, any discussion among Board Members? 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: Board Members have any questions of the Department? There was no discussion by Board Members. Fuke: If not, Ms. Frenz, could you read the penalty? Frenz: A $100.00 fine, which has been paid in full as of April 12, 2023. Again, in this case, two email reminders were sent, information was not timely provided, it has been subsequently submitted to the Liquor Department. Rule 1.12 controls recommending again a $100.00 fine, they have no prior law violations of this nature and they have taken responsibility. Fuke: Thank you very much. May I have a motion on the penalty? Taniguchi: So moved. Raymond: Second. Board Member Taniguchi moved to accept the recommendation by the Department for penalty in Case No. 2023-011, 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 April 12, 2023; Seconded by Board Member Raymond. Fuke: It's been moved and seconded, any discussion on the penalty? MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, APRIL 20, 2023 - HILO PAGE 19 OF 25 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 to the Licensee, indicating the penalty and that payment was received. 9. CASE NO. 2023-012 (10:25 AM) In the Matter of the Accusation Against The Kona Coffee & Tea Company, Inc., dba Kona Coffee & Tea Company, located at the Kona Coast Shopping Center, 74-5588 Palani Road, Kailua-Kona, Hawaii. Informal Hearing (Alternative IV) on violation of Rule 3-6(A)(1) 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 an Initial Gross Liquor Sales Report by the deadline of January 31, 2023. Frenz: Request that we waive reading, Chair, the Licensee has selected Alternative IV in this case. Fuke: Thank you very much. That being the case, may I have a motion to find the Licensee in violation of the charge? Hughes: So moved. Raymond: Second. Board Member Hughes moved to find the Licensee in Case No. 2023-012, in violation of Rule 3-6(A)(1) 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 an Initial Gross Liquor Sales Report by the deadline of January 31, 2023; Seconded by Board Member Raymond. Fuke: It's been moved and seconded that the Licensee is found in violation of the charge. Any discussion among the Board Members? There was no discussion by Board Members. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, APRIL 20, 2023 - HILO PAGE 20 OF 25 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: The motion is unanimously carried. The motion was carried unanimously. Fuke: Board Members have any questions of the Department? There was no discussion by Board Members. Fuke: If not, Ms. Frenz, the Department's recommendation, please. Frenz: Again, a $100.00 fine, in this case, the Licensee has already made payment as of April 3rd, 2023. Again, two email reminders were sent prior to the deadline, they did not submit, they since have submitted. They have no prior law violations of this nature, they had taken responsibility, and again, they are already paid in full, a $100.00 fine is recommended pursuant to the rule. Fuke: Thank you very much. May I have a motion on the penalty? Taniguchi: So moved. Raymond: Second. Board Member Taniguchi moved to accept the recommendation by the Department for penalty in Case No. 2023-012, 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 April 3, 2023; Seconded by Board Member Raymond. Fuke: It's been moved and seconded. Any discussion on the penalty? There was no discussion by Board Members. Fuke: If not, all those in favor say "Aye." The Board Members voted "Aye." Fuke: Opposed, "Nay." There was no opposition by Board Members. Fuke: Motion is unanimously carried. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, APRIL 20, 2023 - HILO PAGE 21 OF 25 The motion was carried unanimously. Fuke: And again, a Decision and Order will be served to the Licensee, indicating the penalty and that payment was received. 10. CASE NO. 2023-013 (10:27 AM) In the Matter of the Accusation Against The Other Bar LLC, dba Hilo Town Tavern, located at 168 Keawe Street, Hilo, Hawaii. Informal Hearing (Alternative IV) on violation of Rule 3-6(A)(1) 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 an Initial Gross Liquor Sales Report by the deadline of January 31, 2023. Frenz: In this case again, we request that we waive reading, they selected Alternative IV, Chair. Fuke: Thank you much, so waived. May I have a motion to find the Licensee in violation of the charge? Taniguchi: So moved. Raymond: Second. Board Member Taniguchi moved to find the Licensee in Case No. 2023-013, in violation of Rule 3-6(A)(1) 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 an Initial Gross Liquor Sales Report by the deadline of January 31, 2023; Seconded by Board Member Raymond. Fuke: It's been moved and seconded, any discussion among Board Members? There was no discussion by Board Members. Fuke: If not, 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 unanimously carried. The motion was carried unanimously. Fuke: Board Members have any questions of the Department? MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, APRIL 20, 2023 - HILO PAGE 22 OF 25 There was no discussion by Board Members. Fuke: If not, Ms. Frenz, the Department's recommendation? Frenz: Yes, again Chair, in this case pursuant to Rule 1.12, a $100.00 fine. In this case, the Department did send again, two reminders prior to the deadline, they failed to timely submit, they since have submitted. This particular establishment and licensee does have prior violations with the Department, there was one in 2013 but not within five years, hence the Department's recommendation is still a $100.00 fine, otherwise it may have increased to $200.00. They also had a 2011 overcrowding offense that was resolved as well, but again, first violation within five years pursuant to the rule is a $100.00 fine. We ask that you impose that $100.00 fine at this time, they made payment on March 28, 2023. Fuke: May I have a motion on the penalty? Hughes: So moved, to accept the recommendation of the Department. Raymond: Second. Board Member Hughes moved to accept the recommendation by the Department for penalty in Case No. 2023-013, 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 March 28, 2023; Seconded by Board Member Raymond. Fuke: Moved and seconded, any discussion among the Board Members? 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 carried unanimously. The motion was carried unanimously. Fuke: Okay, a Decision and Order will be served to the Licensee, indicating the penalty and that the payment was received. Thank you very much. IV. Unfinished Business (10:29 AM) Fuke: Mr. Gonzalez, any Unfinished Business? Gonzalez: Mr. Chair, there is no Unfinished Business. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, APRIL 20, 2023 - HILO PAGE 23 OF 25 V. New Business (10:29 AM) Fuke: What about New Business? Gonzalez: Also, no New Business. If you would like to move on to Announcements? VI. Announcements (10:29 AM) Meetings of the Liquor Adjudication Board May 18, 2023, Time and Location To Be Determined. June 15, 2023, Time and Location To Be Determined. Gonzalez: As a heads up, at this point, we will most likely not be holding a meeting in June for a couple of reasons. Number one, that is our renewal period right around the end of the month. June 30 is the end of the license period and renewals, so we're going to be pretty busy doing that. Additionally, there are other potential conflicts on the calendar for us. Fuke: So, as far as the May 18t" meeting, do you anticipate any controversial items? Gonzalez: Currently, I do not have anything scheduled for May. We do have some ongoing investigations that I would have hoped to be ready by May, but if they're not, we can always have them in August, because typically in August that's when we have a meeting covering the summer months. So, May unlikely, June, not going to have. Fuke: Any more announcements other than that, then? There were no further announcements. VII. Adjournment (10:31 AM) Fuke: Is there a motion to adjourn? Taniguchi: So moved Hughes: Second. Board Member Taniguchi moved to adjourn the meeting; Seconded by Board Member Hughes. Fuke: It's moved and seconded, any discussion? There was no discussion by Board Members. Fuke: If not, call for the question, all those in favor, "Aye." MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, APRIL 20, 2023 - HILO PAGE 24 OF 25 The Board Members voted "Aye." Fuke: Opposed, "Nay." There was no opposition by Board Members. Fuke: Motion carried unanimously. The motion was carried unanimously. Fuke: Meeting adjourned at 10:31 a.m. Zald Takase Director The April 20, 2023, Liquor Adjudication Board meeting minutes were approved as circulated, via email on May 11, 2023, by the Liquor Adjudication Board of the County of Hawaii on December 21, 20238 MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, APRIL 20, 2023 - HILO PAGE 25 OF 25