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HomeMy WebLinkAbout2023-12-21 Liquor Adjudication Board MinutesCOUNTY OF HAWAI`I DEPARTMENT OF LIQUOR CONTROL LIQUOR ADJUDICATION BOARD MINUTES — DECEMBER 21, 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 Chair Sidney Fuke at 10:30 A.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 Arthur Taniguchi, Vice Chair Howard Kelly, Board Member Dawn Raymond, Board Member Absent and Excused: Michael Hughes, Board Member Others Present: Gerald Takase, Director Brandon Gonzalez, Administrative Officer Dakota `Cody' Frenz, Deputy Corporation Counsel (Department/Prosecutor) Diana Mellon -Lacey, Deputy Corporation Counsel (Board) Hau`oli Sayles, Board Secretary Fuke: So, this meeting is being recorded, so please speak loudly, clear, and one at a time. I'd like to now introduce, or have the Board Members and the staff introduce themselves starting from my far right, Mr. Kelly? Kelly: Howard Kelly, Board Member. Mellon -Lacey: Diana Mellon- Lacey, Deputy Corporation Counsel, advisor to the Board. Taniguchi: Art Taniguchi, Vice Chair. Raymond: Dawn Raymond, Board Member. Takase: Gerald Takase, Director. Gonzalez: Brandon Gonzalez, Administrative Officer. Frenz: Deputy Corporation Counsel Cody Frenz, on behalf of the Department. Sayles: Board Secretary Hau`oli Sayles. Hawaii County is an Equal Opportunity Provider and Employer Fuke: Thank you very much, also I would like to acknowledge the absence and excusal of Board Member Michael Hughes. II. Approval of Minutes —April 20, 2023 (10:31 AM) Fuke: On the minutes of April 20, 2023, they were circulated previously via email on May 11, 2023. Could I have a motion to approve the minutes as circulated? Raymond: So moved. Taniguchi: Second. Board Member Raymond moved to approve the April 20, 2023, meeting minutes as circulated; Seconded by Board Member Taniguchi. Fuke: 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, "Nay." There was no opposition by Board Members. Fuke: Unanimously carried. The motion was carried unanimously. III. Hearings (10:31 AM) 1. CASE NO. 2023-014 (10:31 AM) In the Matter of the Accusation Against IES Retail, LLC, dba IES Retail, LLC, located at 321 Maka`ala Street, Hilo, Hawaii. Informal Hearing (Alternative I) on violation of Section 281-41(i) of the Hawaii Revised Statutes, as amended, for failure to notify the Commission in writing within 30 days of a change in members or managers of a Limited Liability Company. Fuke: Ms. Frenz, could you please read the Complaint and Accusation, and the Answer to the Complaint, please? MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 21, 2023 - HILO PAGE 2 OF 17 Frenz: Yes, Chair. First I'd indicate that the Licensee has in fact reached a settlement agreement with the Department in this case. The Complaint and Accusation states that on or about the 28th day of June 2023, in the County and State of Hawaii, the Licensee, IES Retail, LLC, dba IES Retail, LLC, failed to notify the Commission in writing within 30 days of August 2, 2022, of the appointment of Albert Chee Jr., Joshua Goldman, and Thomas Lamothe, as Managers;, in violation of Section 281-41(i) of the Hawaii Revised Statutes, as amended. would also indicate for this Board that the Licensee has in fact selected Alternative I, admitting to the allegation, stipulating that disciplinary action may be taken without their presence, and waiving its right to a hearing and an appeal. Fuke: Okay, thank you very much. May I have a motion to find the Licensee in violation of the charge? Kelly: So moved. Raymond: Second. Board Member Kelly moved to find the Licensee in Case No. 2023-014 in violation of Section 281-41(i) of the Hawaii Revised Statutes, as amended, for failure to notify the Commission in writing within 30 days of a change in members or managers of a Limited Liability Company; Seconded by Board Member Raymond. Fuke: Is there a 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, "Nay." There was no opposition by Board Members. Fuke: Motion's carried. The motion was carried unanimously. Fuke: Do Board Members have any questions of the Department or the attorney? There was no discussion by Board Members. Fuke: If not, Ms. Frenz, could you please provide the details of the settlement agreement, although you did acknowledge that they paid it. Frenz: Yes, Chair. So, this case is the result of the Licensee's failure to timely notify the Commission of its business -related changes as required by law. The changes were done MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 21, 2023 - HILO PAGE 3 OF 17 on August 2, 2022, but notification was not provided as required until June 28, 2023, so obviously more than 30 days beyond their expected deadline. The parties have in fact agreed to a $100.00 fine, they don't have any priors of this nature, and they have in fact made payment on December 19, 2023. Fuke: Thank you very much. May I have a motion on the penalty? Taniguchi: So moved. Kelly: Second. Board Member Taniguchi moved to accept the recommendation of the Department for penalty in Case No. 2023-014, that the Licensee be assessed a fine in the amount of ONE HUNDRED AND NO/100 DOLLARS ($100.00), that was paid to the Department of Liquor Control on December 19, 2023; Seconded by Board Member Kelly. Fuke: Any discussion among the 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, "Nay." There was no opposition by Board Members. Fuke: Motion unanimously carried. The motion was carried unanimously. Fuke: A Decision and Order will be served to the Licensee, indicating the penalty and payment. 2. CASE NO. 2023-015 (10:34 AM) In the Matter of the Accusation Against Crossroads Fireart LLC, dba Fireart Cuisine, located at the Crossroads Shopping Center, 75-1027 Henry Street, #104, Kailua-Kona, Hawaii. Informal Hearing (Alternative I) on violation of Section 281-41(i) of the Hawaii Revised Statutes, as amended, for failure to notify the Commission in writing within 30 days of a change in members or managers of a Limited Liability Company. Fuke: Ms. Frenz, could you please read the Complaint and Accusation, and the Answer to the Complaint. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 21, 2023 - HILO PAGE 4 OF 17 Frenz: Yes, Chair. On or about the 10th day of July 2023, in the County and State of Hawaii, the Licensee, Crossroads Fireart LLC, dba Fireart Cuisine, failed to notify the Commission in writing within 30 days of October 7, 2022, of the appointment of Dexiang He, and Fen MacCarley (aka Fen He), as Members; in violation of Section 281-41(i) of the Hawaii Revised Statutes, as amended. also notify this Board, Chair, that the Licensee has in fact selected Alternative I, admitting to the allegation, stipulating that disciplinary action may be taken without their presence, and waiving its right to a hearing and an appeal. Fuke: Thank you very much. Could I have a motion to find the Licensee in violation of the charge? Kelly: So moved. Taniguchi: Second. Board Member Kelly moved to find the Licensee in Case No. 2023-015 in violation of Section 281-41(i) of the Hawaii Revised Statutes, as amended, for failure to notify the Commission in writing within 30 days of a change in members or managers of a Limited Liability Company; Seconded by Board Member Taniguchi. Fuke: 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: Do Board Members have any questions of the Department or its attorney? There was no discussion by Board Members. Fuke: If not, Ms. Frenz, could you please provide the Department's recommendation for penalty? Frenz: Recommendation is a $100.00 fine, I don't have any indication about payment made to date, Chair. Fuke: Thank you very much, is there a motion on the penalty of $100.00? MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 21, 2023 - HILO PAGE 5 OF 17 Kelly: So moved. Taniguchi: Second. Board Member Kelly moved to accept the recommendation of the Department for penalty in Case No. 2023-015, that the Licensee be 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 Taniguchi. Fuke: 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, thank you very much. 3. CASE NO. 2023-016 (10:36 AM) In the utter of the Accusation Against El Guapo Enterprises, LLC, dba Dolphin Spit Saloon, located at The `llima Court Shopping Center, 75-5629 Kuakini Highway, Suite F, Kailua-Kona, Hawaii. Informal Hearing (Alternative IV) on 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, 2023. Fuke: Ms. Frenz, please read the Complaint and Accusation, and the Answer to the Complaint. Frenz: Yes, Chair. On or about the 31 st day of July 2023, in the County and State of Hawaii, the Licensee, El Guapo Enterprises, LLC, dba Dolphin Spit Saloon, failed to submit a Final Gross Liquor Sales Report by the deadline of July 31, 2023, 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. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 21, 2023 - HILO PAGE 6 OF 17 I'd further note, Chair, that the Licensee has in fact selected Alternative IV, admitting to the allegation, stipulating that disciplinary action may be taken without their presence, waiving its right to a hearing and appeal, subjecting itself to the penalties pursuant to Rule 1.12, which is a $100.00 fine for the first offense. I'd further note finally that the Licensee has in fact made payment of the $100.00 fine to the Department on November 24, 2023. Fuke: Thank you very much. May I have a motion to find the Licensee in violation of the charge? Taniguchi: So moved. Kelly: Second. Board Member Taniguchi moved to find the Licensee in Case No. 2023-016, 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, 2023; Seconded by Board Member Kelly. Fuke: 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 or its attorney? There was no discussion from Board Members. Fuke: Okay, moving on. Ms. Frenz, could you please provide the Department's recommendation for penalty in this case. Frenz: Yes, so as the complaint and accusation alleges, the Licensee in this case failed to submit its final report of gross liquor sales to the Department by July 31St, 2023. In this case, there were reminders provided to the Licensee on June 15, 2023, July 28, 2023, and in fact, an in -person reminder to the Licensee on July 28, 2023, they nevertheless failed though to file that report. The $100.00 is a recommendation and as it previously indicated, they made payment on November 24, 2023. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 21, 2023 - HILO PAGE 7 OF 17 Fuke: Thank you very much. May I have a motion on the recommended $100.00 penalty? Kelly: So moved. Taniguchi: Second. Board Member Kelly moved to accept the recommendation by the Department for penalty in Case No. 2023-016, 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 24, 2023; Seconded by Board Member Taniguchi. Fuke: 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: Motion is unanimously carried. The motion was carried unanimously. Fuke: Again, a Decision and Order will be served to the Licensee, indicating the penalty and in fact the payment has been made. 4. CASE NO. 2023-017 (10:39 AM) In the Matter of the Accusation Against Da Poke Shack, Limited Liability Company, dba Da Poke Shack, located at the Bali Kai Condos, 76-6246 Ali`i Drive, Unit 101, Kailua-Kona, Hawaii. Informal Hearing (Alternative IV) on 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, 2023. Fuke: Ms. Frenz, could you please read the Complaint and Accusation, and the Answer to the Complaint. Frenz: Yes, Chair. On or about the 31 st day of July 2023, in the County and State of Hawaii, the Licensee, Da Poke Shack, Limited Liability Company, dba Da Poke Shack, failed to submit a Final Gross Liquor Sales Report by the deadline of July 31, 2023, in violation of MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 21, 2023 - HILO PAGE 8 OF 17 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. would further note Chair, that the Licensee has in fact selected Alternative IV, admitting to the allegation, stipulating that disciplinary action may be taken without their presence, they're waiving their right to a hearing and an appeal, subjecting themselves to the penalties pursuant to Rule 1.12, which is a $100.00 fine for the first offense. I'd further note that the Licensee has already made payment, Chair, as of December 5, 2023, in the amount of $100.00. Fuke: Okay, thank you very much. May I please have a motion to find the Licensee in violation of the charge? Taniguchi: So moved. Kelly: Second. Board Member Taniguchi moved to find the Licensee in Case No. 2023-017, 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, 2023; Seconded by Board Member Kelly. Fuke: 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: Motion is unanimously carried. The motion was carried unanimously. Fuke: Board Members have any questions of the Department or its attorney? Taniguchi: Yes, I have a question for Gerald, so if they don't send in this gross sales report, does that affect their assessment? Takase: Well, eventually it will because what happens is, we get all of the gross sale reports, and then that helps determine our budget for the year. So it really doesn't affect us until when we try to collect it which is in November, but we'll get it before then, and individually, unless they're one of the big ones like Costco, or Hilton, their percentage would probably not change that much. So, they've done better, the investigators have been very good about getting them out, but some of them I don't know why, because we send the notice about 30 days out, and MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 21, 2023 - HILO PAGE 9 OF 17 we send reminders about two weeks out, and then the week of the investigators actually pay them a visit. Most of them get it done by then, or at least give us a timetable when they'll get it done. But the ones you're seeing just for some reason either, most likely they were closed when they went to see them, and they never got anything back from them. Taniguchi: Thank you. Fuke: Following up on that, what's the consequence if you have a recurring violation, is it the same, always a $100.00 fine? Takase: No, it just increases $100.00 to $200.00, from $200.00 to $300.00. So, we adopted a schedule for these ministerial types of violations, so that's the escalation. Fuke: Any other discussion? There was no further discussion by Board Members. Fuke: Ms. Frenz, please provide the Department's recommendation for penalty in this case. Frenz: In this case, the Licensee failed to file their final report of gross liquor sales, which again, was due July 31 St, 2023, as with the previous matter, there were reminders provided to the owner and/or the Licensee. Reminder emails were sent June 15, 2023, July 28, 2023, and in this case, on July 29, 2023, an investigator in fact spoke to the owner to remind them of their duty and obligation to file that report, which they still nevertheless failed to do. They have however made their $100.00 payment effective December 5, 2023. Fuke: Now, may I have a motion on the penalty? Kelly: So moved. Taniguchi: Second. Board Member Kelly moved to accept the recommendation by the Department for penalty in Case No. 2023-017, 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 December 5, 2023; Seconded by Board Member Taniguchi. Fuke: 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. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 21, 2023 - HILO PAGE 10 OF 17 Fuke: Motion is unanimously carried. The motion was carried unanimously. Fuke: And a Decision and Order will be served to the Licensee, noting the penalty and that the payment was received. 5. CASE NO. 2023-018 (10:44 AM) In the Matter of the Accusation Against Morimoto Foods, LLC, dba TJ's Pau Hana Hale, located at the Kopiko Plaza, 75-5660 Kopiko Street, Unit 5B, Kailua-Kona, Hawaii. Informal Hearing (Alternative IV) on 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, 2023. Fuke: Ms. Frenz, could you please read the Complaint and Accusation. Frenz: Yes, Chair. On or about the 31 st day of July 2023, in the County and State of Hawaii, Licensee, Morimoto Foods, LLC, dba TJ's Pau Hana Hale, failed to submit a Final Gross Liquor Sales Report by the deadline of July 31, 2023, 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. should further note, Chair, that the Licensee has in fact selected Alternative IV, admitting to the allegation, stipulating that disciplinary process or action may be taken without their presence, waiving its right to a hearing and an appeal, subjecting itself to the penalties pursuant to Rule 1.12, which is a $100.00 fine for the first offense. I would further note that they have in fact made payment to the Department effective November 30, 2023, Chair. 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. 2023-018, 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, 2023; Seconded by Board Member Taniguchi. Fuke: Any discussion among the Board Members? There was no discussion by Board Members. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 21, 2023 - HILO PAGE 11 OF 17 Fuke: Okay, all those in favor please say "Aye." The Board Members voted "Aye." Fuke: All opposed, "Nay." There was no opposition by Board Members. Fuke: Motion is unanimously carried. The motion was carried unanimously. Fuke: Members of the Board have questions of the Department or its attorney? There was no discussion by Board Members. Fuke: If not, Ms. Frenz, could you please provide the Department's recommendation for penalty in this case? Frenz: Yes, Chair, as the complaint and accusation states, the Licensee failed to file its report of gross liquor sales by the deadline of July 31 St, 2023, despite reminders via email on June 15, 2023, July 28, 2023, and a phone call reminder on July 29, 2023. It's a $100.00 fine, which has already been paid in full by the licensee on November 30, 2023. Fuke: Thank you very much. May I have a motion on the penalty? Raymond: So moved. Taniguchi: Second. Board Member Raymond moved to accept the recommendation by the Department for penalty in Case No. 2023-018, 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 30, 2023; Seconded by Board Member Taniguchi. Fuke: 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: Motion is unanimously carried. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 21, 2023 - HILO PAGE 12 OF 17 The motion was carried unanimously. Fuke: Again, a Decision and Order will be served to the Licensee, indicating the penalty and that the payment was received. IV. Unfinished Business (10:47 AM) Fuke: There is no Unfinished Business. V. New Business (10:47 AM) 1. Destruction and Disposal of Evidence for Concluded Investigations Memo dated November 30, 2023. Fuke: Do we need a motion on this, or is this pretty much a report? Takase: Actually, the Commission approved it, we filed this report with the Commission indicating liquor we disposed of when we cleaned out our evidence locker so, we should be up to date now. So, I guess you can just make a motion to approve it. Fuke: Is there a motion to approve the destruction and disposal of the evidence, then? Raymond: So moved. Kelly: Second. Board Member Raymond moved to approve the Destruction and Disposal of Evidence for Concluded Investigations Memo dated November 30, 2023; Seconded by Board Member Kelly. Fuke: Is there any discussion among the Board Members on the motion to approve the destruction and disposal of evidence report provided by the Department? There was no discussion by Board Members. Fuke: I have a couple of questions I mean in that regard, first of all, where it's stored, and secondly, how is it disposed? Takase: We have an evidence locker in the investigator's office. Fuke: In this building? Takase: Yes. So, we store it in there, it's highly secure, and we dispose of it by pouring it down the drain. Kelly: Is this done every year, a whole year's worth of stuff? MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 21, 2023 - HILO PAGE 13 OF 17 Takase: This is probably the first time in about 5 years, we were going through their locker, and a lot of times we don't know when we take it in, what is going to happen. So, it takes some time for our investigator's to finally close out the cases, so until it's closed, we will maintain custody of the evidence. But yeah, since we didn't have many cases, you see here it just kind of collected. Kelly: Is that like evidence confiscated on a sting or something like that, is that what it is? Takase: Yes, so it's mostly the "Sale to Minor" cases. Taniguchi: What about the unlicensed liquor? Takase: The unlicensed liquor was a case where our investigator actually caught Margarita Village carrying cases of beer into their premises, so not getting it through a wholesaler, and his rationale was it was the weekend, and they couldn't get a delivery, but that's not allowed. Taniguchi: Oh, I see. Takase: We've been having actually some problems with our wholesaler lately, because Paradise Beverage was bought out by Island Distributing, and they have cut back on deliveries to the licensees. So, I've been kind of having discussions with them, that you know, they're almost making the licensees now look for other sources of liquor. And so, I'm kind of getting on them that they need to provide a little better service. And they're saying, these guys order four or five cases at a time and it's not really worth our while, but I said it is worth your while because that's what your license requires you to do, so hopefully we will clear it up and, in the meantime, I'm telling them to just buy from Odom. Taniguchi: So, they cannot go to like Costco and buy it real cheap, and then sell it in their restaurant? Takase: No, they're not supposed to, they're supposed to buy it from a wholesaler. Taniguchi: I can see that, because they probably don't order that much, yeah, I mean compared to the supermarkets or whatever. Takase: Yes, so you know I tell these guys, if you want to operate in a small market, you got to conform, and so we've been kind of championing the small licensee's position for them, because they said they don't have storage for one, and they can't buy 100 cases at a time. Fuke: I assume you would have like an electronic version of the evidence, like photos? Takase: We could, sometimes we just photograph it and return it to them, like in this case, we weren't going to return it to them, so we had it. And it depends, the bars provided it open already, so it's done. The store ones, sometimes we return it and get our money back. Fuke: Okay, so we have a motion to approve and seconded, for the acceptance of the report provided by the Department. All those in favor of that, please say "Aye." The Board Members voted "Aye." MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 21, 2023 - HILO PAGE 14 OF 17 Fuke: Opposed, say "Nay." There was no opposition by Board Members. Fuke: The motion is unanimously carried. The motion was carried unanimously. 2. Election of Chair and Vice Chair for 2024. (10:54 AM) Fuke: Is there a motion for nomination? Takase: So, Art is going off the Adjudication Board, everybody else is eligible. Kelly: I'd like to nominate Sidney for a second term as Chair. Taniguchi: Okay, I will nominate Howard as Vice Chair, then. Fuke: Okay, I will accept, and he will accept. Any further nominations for Chair or Vice Chair? There were no further nominations by Board Members. Fuke: Is there a second? Raymond: I'll second. Board Member Kelly moved to nominate Board Member Sidney Fuke as Chair for a second term, and Board Member Taniguchi moved to nominate Board Member Howard Kelly, as Vice Chair for 2024; Seconded by Board Member Raymond. Fuke: Okay, any further discussion on the nominees for the Chair and Vice Chair for 2024? 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: Congratulations there, Mr. Kelly. The motion was carried unanimously. Fuke: Thank you very much for your service, Vice Chair Taniguchi. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 21, 2023 - HILO PAGE 15 OF 17 Takase: So, since this is our last meeting of the year, officially, I'd like to present to Art, this certificate of appreciation from the mayor. It's kind of funny because he is actually nominated to come back on to the Liquor Commission. Shall we just save this and add Commission underneath? We'll go with the formalities, thank you for your service, doesn't seem like it's been five years. Taniguchi: The good thing about this Liquor Department is that they try to help the people instead of penalizing them, and I think that's very important. But, in my career, it's always been trying to help people on the lending or advice side, and all that, but I see that you guys do real well over here, so keep up the good work, because you have good staff. But really, you cannot just ding people all the time, you going to have to help them and try to make them succeed, I see Gerald always doing that. The good thing with him is that he has background in Planning, on the permitting side like that, so he can kind of give people advise. So, that kind of stuff is really important, especially in a community like ours, and in these hard economic times. Well, it was a pleasure, good fun working with you guys, and hopefully I'll get back on again. Takase: Art's position is open, and there's no nominee yet. So, actually, Art's position will be open, and in Kona, Ron Ibarra's position will be open which is District 8, North Kona. District 6, we still have an opening, which is Ka`u and South Kona, and that's been open since last year so, if you guys know of people, Allen Salave`a was the last Commissioner. It's a big district, actually it comes down to upper Mountain View, I think. So, if you know of people, let us know. Fuke: Thank you very much for your service, Vice Chair Taniguchi, and I echo your comments about you know, the Department's attitude. Last night, that's why my eyes is kind of bleary, I was watching this movie on Netflix, and I would strongly recommend that movie to all of you, it's called "Bank of Dave." And it's a true story about this banker who lives up in Bernaby, England, and he wanted to establish a bank that was really like for the people, and he had to fight against the establishment. There was no new bank issued in over 150 years in England, but he was the first one, and his whole idea was just to give whatever money he accumulated within that particular area to serve the community, and the profits all went back to the community. So, that was very noble unlike the traditional banker, it was called a savings and loan, I think. This true story was very heartwarming, and I think that to a large extent, the Department has that kind of attitude, which is a real compliment from my standpoint, and so I'm not saying that because it's the season, I think we all genuinely feel that about Gerald, how you and the rest of the staff operates. Takase: Thank you. I've been through the County long enough that I see what happens to people, and you know, they come in here with dreams about starting their own business and things, and I see them get caught in this process and it just grinds on and on, so as much as possible, I have Brandon and Stacie trying to help them through the process. And we probably do more than we actually should be, but it's okay because you know, at least they have somebody they can confide in, you know if they're not getting anywhere with Public Works or Planning, so we can kind of point them in the right direction a lot of times, and you know if they're successful, it helps us. But I give these guys credit for trying to go out and do business and stuff so we try not to be another roadblock for them. Fuke: And yes, I strongly recommend watching that movie, "Bank of Dave", because it has like other elements that kind of typifies the Department, like they had karaoke and dancing to rock kind of music, but that was really heartfelt, but the message was clear, and so anyway thank you very much. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 21, 2023 - HILO PAGE 16 OF 17 VI. Announcements (11:03 AM) Meetings of the Liquor Adjudication Boar4 January 1 1 A.M., LocationBe Determined. _ Location To Be Determined. Fuke: Any other announcements? Takase: So, we won't have any cases for January, so we can scratch that, and February, probably not either. VII. Adjournment (11:03 AM) 'Fulke: - Chair moves • I adjournment Raymond: • Move to adjourn. Board Member Raymond moved to adjourn the -neeting; Seconded by Board Member Taniguchi. Any discussion? There was no discussion by Board Members. No discussion,• -' in favorplease I • • Board Members voted Opposed, • - was no opposition by • • Memberj Motion •• unanimously. The motion . I I • f • Fuke: The last meeting of 2023 has ended. The meeting was adjourned at 11:03 A.M. 2rald Takase Director The December 21, 2023, Liquor Adjudication Board meeting minutes were approved as circulated, via email on January 24, 2024, by the Liquor Adjudication Board of the County of Hawaii on May 16, 2024. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, DECEMBER 21, 2023 - HILO PAGE 17 OF 17