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HomeMy WebLinkAbout2024-11-07 Liquor Commission Minutes HiloCOUNTY OF HAWAI`I DEPARTMENT OF LIQUOR CONTROL LIQUOR COMMISSION MEETING MINUTES — NOVEMBER 7, 2024 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 Nishimoto at 10:00 A.M., in the Hilo Meeting Room, Department of Liquor Control, Hilo Lagoon Centre, 101 Au pu n i Street, Unit 230, Hilo, Hawaii. The following were present and constituted a quorum: Commissioners: Laurisa Nishimoto, Chair Wil Okabe, Vice Chair Doug Espejo, Commissioner David Greenwell, Commissioner Arthur Taniguchi, Commissioner Jennifer Yadao, Commissioner Absent and Excused: Melvin Ventura, Commissioner Jennifer Wilkinson, Commissioner Others Present: Gerald Takase, Director Brandon Gonzalez, Administrative Officer Ihna Kandatsu-Kang, Deputy Corporation Counsel Stacie Waltjen, Licensing Officer Hau`oli Sayles, Commission Secretary Nishimoto: Please silence phones and other devices, this meeting is being recorded, so speak loud, clear and one at a time. We will now do roll call, please say present when your name is called. Sayles: Vice Chair Okabe. Okabe: Present. Sayles: Commissioner Espejo. Espejo: Present. Sayles: Commissioner Greenwell. Greenwell: Present. Sayles: Commissioner Taniguchi. Taniguchi: Present. Sayles: Commissioner Yadao. Yadao: Present. Sayles: Chair Nishimoto. Nishimoto: Present. Sayles: Absent and excused today are Commissioner Ventura, and Commissioner Wilkinson. Others present are Director Gerald Takase, Administrative Officer Brandon Gonzalez, Deputy Corporation Counsel Ihna Kandatsu-Kang, Licensing Officer Stacie Waltjen, and Commission Secretary Hau`oli Sayles. II. Approval of Minutes —October 3, 2024 (10:02 AM) Nishimoto: The October 3, 2024, meeting minutes were circulated via email on October 31, 2024. May I have a motion to approve meeting minutes as circulated? Okabe: So moved as circulated. Greenwell: Greenwell, second. Commissioner Okabe moved to approve the October 3, 2024, Liquor Commission meeting minutes as circulated; Seconded by Commissioner Greenwell. Nishimoto: Thank you, any discussion? There was no discussion by Commissioners. Nishimoto: Okay, let's take a vote, all those in favor say "Aye." The Commissioners voted "Aye." Nishimoto: All those opposed say "Nay." There was no opposition by Commissioners. Nishimoto: Meeting minutes have been approved. MINUTES - LIQUOR COMMISSION MEETING & PUBLIC HEARING - THURSDAY, NOVEMBER 7, 2024 - HILO PAGE 2 OF 30 The motion was carried unanimously. III. Approval of Addendum and/or Supplemental Agenda (10:02 AM) Nishimoto: There's no addendum and/or supplemental agenda. IV. Public Statements on Agenda Items (10:02 AM) Nishimoto: Any public statements from members of the public at this time? There were no statements from members of the public. V. Public Hearings (10:02 AM) 1. APPLICATION NO.: APPLICANT: (10:03 AM) TRADE NAME: PLACE OF BUSINESS: TM K: LICENSE APPLIED FOR: T24-04 Smash Daddy's LLC Smash Daddy's Pahoa 15-2714 Pahoa Village Road, Suite 1-3, Pahoa, Hawaii 1-5-007-069 Sale and Transfer of the Restaurant General liquor license, Category 131, currently held by Coco Cantina Puna Kai LLC, dba Coco Cantina Attended in person representing applicant: Nakoa Pabre, and Shawn O'Shaughnessy, Co -owners. Nishimoto: Good morning, please state your name and relationship to the business. Pabre: Good morning, Nakoa Pabre, President. O'Shaughnessy: Shawn O'Shaughnessy. Nishimoto: Can you describe your business, please? O'Shaughnessy: So, we're a restaurant that does a smash burger. We do a variety of different styles of the burger, which is not only just a smash, we do a nice little lacing of the outside of the burger. So, we have a nice, small menu, fast -casual restaurant. We also have the same style restaurant in Waikoloa, so yeah looking forward to opening in Puna Kai Shopping Center. Nishimoto: Have you received the application report? O'Shaughnessy: Yes. MINUTES - LIQUOR COMMISSION MEETING & PUBLIC HEARING - THURSDAY, NOVEMBER 7, 2024 - HILO PAGE 3 OF 30 Nishimoto: Are there any changes to the report? O'Shaughnessy: No. Nishimoto: Director, are there any reports of protests? Takase: Madame Chairman, this is a sale and transfer, notice was made by publication on October 13t"7 2024. We received no protests to this application. Nishimoto: Okay, thank you. Any public testimony? There was no public testimony. Nishimoto: Seeing none. Commission, any discussion or questions? There was no discussion by Commissioners. Nishimoto: Seeing that there are none, may I have a motion to close the public hearing? Okabe: Motion to close. Espejo: Espejo, second. Commissioner Okabe moved to close the public hearing; Seconded by Commissioner Espejo. Nishimoto: Any discussion of the motion? There was no discussion by Commissioners. Nishimoto: Let's take a vote, all those in favor say "Aye." The Commissioners voted "Aye." Nishimoto: All those opposed say "Nay." There was no opposition by Commissioners. Nishimoto: Public hearing has been closed. The motion was carried unanimously. Nishimoto: May I have a motion to approve or deny Application No. T24-04, pending final inspection? MINUTES - LIQUOR COMMISSION MEETING & PUBLIC HEARING - THURSDAY, NOVEMBER 7, 2024 - HILO PAGE 4 OF 30 Okabe: Motion to approve Application No. T24-04, pending final inspection. Nishimoto: May I have a second? Greenwell: Greenwell, second. Commissioner Okabe moved to approve Application No. T24-04, Smash Daddy's LLC, dba Smash Daddy's Pahoa, for a Sale and Transfer of the Restaurant General liquor license, Category B1, currently held by Coco Cantina Puna Kai LLC, dba Coco Cantina, located at 15-2714 Pahoa Village Road, Suite 1-3, Pahoa, Hawaii, TMK: 1-5-007-069, pending final inspection; Seconded by Commissioner Greenwell. Nishimoto: Thank you, any discussion of the motion? There was no discussion by Commissioners. Nishimoto: Let's take a vote, all those in favor say "Aye." The Commissioners voted "Aye." Nishimoto: All those opposed say "Nay." There was no opposition by Commissioners. Nishimoto: Application No. T24-04 has been approved. The motion was carried unanimously. VI. Preliminary Hearings (10:06 AM) 1. APPLICATION NO.: APPLICANT: (10:06 AM) TRADE NAME: PLACE OF BUSINESS: TMK: LICENSE APPLIED FOR: 24-09 Hotel Management Partners, LLC TBD 75-5739 Ali`i Drive, Kailua-Kona, Hawaii 7-5-007:004 (por) Original Hotel liquor license Attended in person representing applicant: Katherine Garson, Authorized Agent, and Sandor Shapery, Owner, were present. Nishimoto: Good morning, please state your name and relationship to the business. MINUTES - LIQUOR COMMISSION MEETING & PUBLIC HEARING - THURSDAY, NOVEMBER 7, 2024 - HILO PAGE 5 OF 30 Garson: Good morning. So, I'm Katherine Garson, from Carlsmith Ball, I'm the attorney for the applicant. With me is Sandor Shapery, he is the sole member of the LLC (Limited Liability Company), Hotel Management Partners. Nishimoto: Welcome. Could you please describe the business. Garson: Most of you know in Kailua-Kona, this is the old Uncle Billy's. The old Uncle Billy's is being refurbished into a Hampton Inn, and the restaurant that's going to be associated with that in that lobby area that's in the middle of the hotel is going to be a Trader Vic's. And so, the dba (doing business as), the TBD (to be determined) was to be determined, but the name will be Island Bar and Grill by Trader Vic's. And so, what Trader Vic's will be doing is part of Hampton Inn's, they serve free breakfast when you go to a Hampton Inn, and so they'll be doing the breakfast in that lobby area and also running the restaurant. Nishimoto: Have you received the report? Garson: Yes. Nishimoto: Are there any changes to the report? Garson: No, except for the dba (doing business as). Nishimoto: The adding of the name, okay. So, again, that was Island Bar and Grill by Trader Vic's? Garson: Correct. Nishimoto: Any public testimony? There was no public testimony. Nishimoto: Seeing that there are none. Are there any discussion or questions on behalf of the Commission? There was no discussion by Commissioners. Nishimoto: No questions. When we have comprehensive reports, there's usually no questions. Okay, may I have a motion to approve or deny Application No. 24-09? If approved, public hearing to be held on January 9, 2025, in Hilo? Okabe: So moved. Nishimoto: May I have a second? Espejo: Second. MINUTES - LIQUOR COMMISSION MEETING & PUBLIC HEARING - THURSDAY, NOVEMBER 7, 2024 - HILO PAGE 6 OF 30 Commissioner Okabe moved to approve Application No. 24-09, Hotel Management Partners, LLC, dba Island Bar and Grill by Trader Vic's, for an Original Hotel liquor license, located at 75-5739 Ali`i Drive, Kailua-Kona, Hawaii, TMK: 7-5-007:004 (por), with public hearing to be held on January 9, 2025, in Hilo, Hawaii; Seconded by Commissioner Espejo. Nishimoto: Any discussion of the motion? There was no discussion by Commissioners. Nishimoto: Let's take a vote, all those in favor say "Aye." The Commissioners voted "Aye." Nishimoto: All those opposed say "Nay." There was no opposition by Commissioners. Nishimoto: Thank you, Application No. 24-09 has been approved. The motion was carried unanimously. 2. APPLICATION NO.: APPLICANT: (10:08 AM) TRADE NAME: PLACE OF BUSINESS: TMK: LICENSE APPLIED FOR: T24-10 Hana Hou Restaurant Group LLC Hana Hou Restaurant 95-1148 N5'51ehu Spur Road, N5'51ehu, Hawaii 9-5-021:005 Sale and Transfer of the Restaurant General liquor license, Category 131, currently held by Hana Hou Restaurant, Inc., dba Hana Hou Restaurant Attended in person representing applicant: Zane Monteleone and Marc Umayam, Co -owners, were present. Nishimoto: Welcome. Please state your name and your relationship to the business. Monteleone: Good morning. Zane Monteleone, Partner. Umayam: Good morning. Marc Umayam, Partner. Nishimoto: Can you please describe the business? MINUTES - LIQUOR COMMISSION MEETING & PUBLIC HEARING - THURSDAY, NOVEMBER 7, 2024 - HILO PAGE 7 OF 30 Monteleone: The business is a restaurant, casual -style bringing homemade food from Lahaina and the recipes we grew up with, we're also excited to be part of the community, moving into the Big Island and sharing the knowledge that we have with our food and beverage industry with that small community. Nishimoto: Thank you. Have you received the report? Monteleone: Yes, ma'am. Nishimoto: Are there any changes to the report? Monteleone: Negative. Nishimoto: Any public testimony? There was no public testimony. Nishimoto: Commission, any discussion or questions? Taniguchi: I have a question, so is this the one that's all the way down at the bottom? Monteleone: Yes, the southernmost restaurant. Taniguchi: The southernmost restaurant in the United States? Monteleone: Yes, sir, right across from the Punalu`u Bakery? Taniguchi: Yes. Monteleone: Yes. Taniguchi: Oh, okay. Nishimoto: Are you still having those homemade pies that they used to have? Monteleone: We are going to continue, yes. Nishimoto: I remember the pies there, very good. Monteleone: Yes, we will continue the pies. Nishimoto: And you said bringing recipes from Lahaina? Monteleone: Yes, I'm born and raised in Lahaina, I was the wrestling coach there for 23 years, and both Mark and I were affected from the wildfire. The previous owner of the bar establishment has been close family friends with my father, and after the fire she took him in, and I relocated him to her house and that's what started our relationship. MINUTES - LIQUOR COMMISSION MEETING & PUBLIC HEARING - THURSDAY, NOVEMBER 7, 2024 - HILO PAGE 8 OF 30 So, it's been a blessing and an opportunity to us and we're excited that we've been out here for about six months, and we finally closed on the deal the beginning of this month which has led us here in front of you. So, it's been a journey and we're very blessed and thankful for the opportunities. Nishimoto: That's a wonderful story, thank you, we wish you the best of luck. Okay, may I have a motion to approve or deny Application No. T24-10? If approved, public hearing to be held on December 5, 2024, in Kona. Taniguchi: Move to approve. Nishimoto: May I have a second? Yadao: Second. Commissioner Taniguchi moved to approve Application No. T24-10, Hana Hou Restaurant Group LLC, dba Hana Hou Restaurant, for a Sale and Transfer of the Restaurant General liquor license, Category B1, currently held by Hana Hou Restaurant, Inc., dba Hana Hou Restaurant, located at 95-1148 Na`alehu Spur Road, Na`alehu, Hawaii, TMK: 9-5-021:005, with public hearing to be held on December 5, 2024, in Kona, Hawaii; Seconded by Commissioner Yadao. Nishimoto: Any discussion of the motion? There was no discussion by Commissioners. Nishimoto: Let's take a vote, all those in favor say "Aye." The Commissioners voted "Aye." Nishimoto: All those opposed say "Nay." There was no opposition by Commissioners. Nishimoto: Application No. T24-10 has been approved. The motion was carried unanimously. Nishimoto: I'd also like to have a motion to ratify the issuance of Temporary License No. T-REST-G-1002, effective October 1, 2024? Taniguchi: So, moved. Nishimoto: May I have a second? MINUTES - LIQUOR COMMISSION MEETING & PUBLIC HEARING - THURSDAY, NOVEMBER 7, 2024 - HILO PAGE 9 OF 30 Espejo: Second. Commissioner Taniguchi moved to ratify issuance of Temporary License No. T-REST-G-1002, effective October 1, 2024; Seconded by Commissioner Espejo. Nishimoto: Any discussion of the motion? There was no discussion by Commissioners. Nishimoto: Let's take a vote, all those in favor say "Aye." The Commissioners voted "Aye." Nishimoto: All those opposed say "Nay." There was no opposition by Commissioners. Nishimoto: Okay, your temporary license has been ratified as well. The motion was carried unanimously. VII. Unfinished Business (10: 12 AM) Nishimoto: There is no Unfinished Business at this time. VIII. New Business (10:12AM) 1. Permits Issued for Ratification (10:12 AM) a. Coco Cantina Puna Kai LLC, dba Coco Cantina, ratify request to transfer liquor inventory to Coco Cantina Hilo LLC, dba Coco Cantina Hilo, approved by Administrative Officer Brandon Gonzalez on October 25, 2024, of its Restaurant General liquor license, Category B1, located at 15-2714 Pahoa Village Road, Suite 1-3, Pahoa, Hawaii. b. Carol i n Row, ratify Application for Individual Importation of Liquor Permit, for shipment of liquor as part of household goods; approved by Director Gerald Takase on October 4, 2024, shipped to 75-6164 Nakukui Drive, Kailua-Kona, Hawaii. C. Tristan Sears, ratify Application for Individual Importation of Liquor Permit, for shipment of liquor as part of household goods; approved by Director Gerald Takase on October 4, 2024, shipped to 59-440 Pili Place, Kamuela, Hawaii I . MINUTES - LIQUOR COMMISSION MEETING & PUBLIC HEARING - THURSDAY, NOVEMBER 7, 2024 - HILO PAGE 10 OF 30 d. Outrigger Kona Resort LLC, dba Outrigger Kona Resort and Spa, ratify Application for Teen Event Permit, for an event on December 14, 2024, approved by Director Gerald Takase on October 17, 2024, of its Hotel liquor license, located at 78-128 Ehukai Street, Kailua-Kona, Hawaii. e. Christopher Camero Memorial VFW Post 12122, dba VFW Post 12122, ratify Application for Game Permits, for an event on November 12, 2024; and for events from November 1-30, 2024; approved by Director Gerald Takase on October 24, 2024, of its Special General liquor license, located at 74-5543 Kaiwi Street, Suite 3-Al85a and 3-Al85b, Kailua- Kona, Hawaii. f. Puna Plantation Hawaii, Limited, dba KTA Super Stores #1 (Keawe), ratify Application for Entertainment Permit, for an event on November 1, 2024, approved by Administrative Officer Brandon Gonzalez on October 25, 2024, of its Retail General liquor license, located at 321 Keawe Street, Hilo, Hawaii. Nishimoto: May I have a motion to ratify? Greenwell: Greenwell make the motion to ratify. Nishimoto: May I have a second? Okabe: Second. Commissioner Greenwell moved to ratify Permits Issued for Ratification, Item Nos. 1(a) through 1(f), as stated in the agenda; Seconded by Commissioner Okabe. Nishimoto: Any discussion of the motion? Taniguchi: Yes, I had a question for Gerald on (d). So, what is this liquor for a teen event? Takase: No, they're asking since it's a licensed premises, when they have teen events which are just for teenagers, usually school party events and stuff, then they have to come to us for a permit. Taniguchi: Even if there's no alcohol involved? Takase: Yes, no alcohol. Nishimoto: Any other discussion or questions on the motion? MINUTES - LIQUOR COMMISSION MEETING & PUBLIC HEARING - THURSDAY, NOVEMBER 7, 2024 - HILO PAGE 11 OF 30 There was no further discussion by Commissioners. Nishimoto: Let's take a vote, all those in favor say "Aye." The Commissioners voted "Aye." Nishimoto: All those opposed please say "Nay." There was no opposition by Commissioners. Nishimoto: Item Nos. 1(a) through 1(f) have been ratified. The motion was carried unanimously. 2. Temporary Increase in Licensed Premises Issued for Ratification (10:14 AM) a. Kuleana Spirits, Inc., dba Kuleana Rum Shack, ratify Application for Temporary Increase in Licensed Premises, for an event on October 5, 2024, approved by Director Gerald Takase on October 3, 2024) of its Small Craft Producer Pub liquor license, Category B1, located at the Queens' MarketPlace, 69-201 Waikoloa Beach Drive, Spaces H5, H6 and H7, Waikoloa, Hawaii. b. JTJ Enterprises, Inc., dba Quinn's, ratify Application for Temporary Increase in Licensed Premises, for an event on October 26, 2024) approved by Administrative Officer Brandon Gonzalez on October 21, 2024, of its Restaurant General liquor license, Category B2, located at 75-5655 Palani Road, Kailua-Kona, Hawaii. C. Napua Hilo LLC, dba Lehua Restaurant at Imiloa, ratify Application for Temporary Increase in Licensed Premises, for an event on October 22, 2024, approved by Administrative Officer Brandon Gonzalez on October 22, 2024; and for an event on October 23, 2024, approved by Administrative Officer Brandon Gonzalez on October 23, 2024; of its Restaurant General liquor license, Category B2, located at 600 `Imiloa Place, Hilo, Hawaii. Nishimoto: May I have a motion to ratify? Okabe: Motion to ratify. Taniguchi: Second. MINUTES - LIQUOR COMMISSION MEETING & PUBLIC HEARING - THURSDAY, NOVEMBER 7, 2024 - HILO PAGE 12 OF 30 Commissioner Okabe moved to ratify Temporary Increase in Licensed Premises Issued for Ratification, Item Nos. 2(a) through 2(c), as stated in the agenda; Seconded by Commissioner Taniguchi. Nishimoto: Any discussion on the motion? There was no discussion by Commissioners. Nishimoto: Let's take a vote, all those in favor say "Aye." The Commissioners voted "Aye." Nishimoto: All those opposed say "Nay." There was no opposition by Commissioners. Nishimoto: Item Nos. 2(a) through 2(c) have been ratified. The motion was carried unanimously. 3. Special Licenses Issued for Ratification (10: 15 AM) a. License No. SP-24-061, Waikoloa Dry Forest Initiative Inc., dba Waikoloa Dry Forest Initiative, for a Special Beer and Wine liquor license, for events on October 18, November 15, and December 14, 2024, held at Quarry Road, Waikoloa, Hawaii. b. License No. SP-24-062, Rotary Club of Hilo Bay, dba Rotary Club of Hilo Bay, for a Special Beer and Wine liquor license, for an event on October 5, 2024, held at the Sanga Hall, 424 Kilauea Avenue, Hilo, Hawaii. C. License No. SP-24-063, Knights of Columbus Council No. 13227 St. Michael the Archangel, dba Knights of Columbus Council No. 13227 St. Michael the Archangel, for a Special Beer and Wine liquor license, for an event on October 19, 2024, held at the Grace Parish Center, 75-5769 Ali`i Drive, Kailua-Kona, Hawaii. d. License No. SP-24-064, Hawaii Ag and Culinary Alliance, dba Hawaii Ag and Culinary Alliance, for a Special General liquor license, for an event on October 18, 2024, held at the Mauna Kea Beach Hotel, 62-100 Mauna Kea Beach Drive, Waimea, Hawaii. MINUTES - LIQUOR COMMISSION MEETING & PUBLIC HEARING - THURSDAY, NOVEMBER 7, 2024 - HILO PAGE 13 OF 30 e. License No. SP-24-065, The Friends of the Palace Theater, dba The Friends of the Palace Theater, for a Special Beer and Wine liquor license, for events on October 4-6, 11-13, 18-20, 2024, held at 38 Haili Street, Hilo, Hawaii. f. License No. SP-24-066, The Friends of the Palace Theater, dba The Friends of the Palace Theater, for a Special Beer and Wine liquor license, for an event on November 1, 2024, held at 38 Haili Street, Hilo, Hawaii. g. License No. SP-24-067, The Friends of the Palace Theater, dba The Friends of the Palace Theater, for a Special Beer and Wine liquor license, for an event on October 31, 2024, held at 38 Haili Street, Hilo, Hawaii. h. License No. SP-24-068, Japanese Chamber of Commerce & Industry of Hawaii, dba Japanese Chamber of Commerce & Industry of Hawaii, for a Special General liquor license, for an event on October 27, 2024, held at the Sanga Hall, 424 Kilauea Avenue, Hilo, Hawaii. i. License No. SP-24-069, Hilo Downtown Improvement Foundation, dba Hilo Downtown Improvement Foundation, for a Special Beer and Wine liquor license, for an event on November 1, 2024, held at 69 Waianuenue Ave, Hilo, Hawaii. j. License No. SP-24-070, Kona Elks Club, dba Kona Elks Club, for a Special General liquor license, for events from November 1-30, 2024, held at 75-170 Hualalai Road, Suite E-100, Kailua-Kona, Hawaii. k. License No. SP-24-071, Fraternal Order of Eagles, dba Fraternal Order of Eagles, for a Special Beer and Wine liquor license, for events on October 18, 19, 25 & 26, 2024, held at 16-111 `Opukaha`ia Street, Kea`au, Hawaii. I. License No. SP-24-072, Aloha Performing Arts Company, dba Aloha Theatre, for a Special Beer and Wine liquor license, for events on October 30 & November 3, 2024, held at 79-7384 Mamalahoa Highway, Kealakekua, Hawaii. M. License No. SP-24-073, Hilo Soccer Club, dba Hilo Soccer Club, for a Special General liquor license, for an event on October 26, 2024) held at 1672 Kamehameha Avenue, Hilo, Hawaii. n. License No. SP-24-074, Ku`ikahi Mediation Center, dba Ku`ikahi Mediation Center, for a Special Beer and Wine liquor license, for an event on November 17, 2024, held at the Hilo Hawaiian Hotel, 71 Banyan Drive, Hilo, Hawaii. MINUTES - LIQUOR COMMISSION MEETING & PUBLIC HEARING - THURSDAY, NOVEMBER 7, 2024 - HILO PAGE 14 OF 30 o. License No. SP-24-075, Hawaii Artist Collaboration, dba Hawaii Artist Collaboration, for a Special Beer and Wine liquor license, for an event on November 9, 2024, held at the West Hawaii Community Health Center, 74-5214 Keanalehu Drive, Kailua-Kona, Hawaii. P. License No. SP-24-076, Aloha Performing Arts Company, dba Aloha Theatre, for a Special Beer and Wine liquor license, for events on November 6 & 10, 2024, held at 79-7384 Mamalahoa Highway, Kealakekua, Hawaii. q. License No. SP-24-077, Penn Hawaii Youth Foundation, dba Penn Hawaii Youth Foundation, for a Special Beer liquor license, for events on October 30 & 31, 2024, held at 145 Keawe Street, Hilo, Hawaii. r. License No. SP-24-078, Hilo Medical Center Foundation, dba Hilo Medical Center Foundation, for a Special Beer and Wine liquor license, for an event on November 3, 2024, held at Hilo Yacht Club, 77 Laehala Street, Hilo, Hawaii. Nishimoto: May I have a motion to ratify? Okabe: Motion to ratify. Nishimoto: May I have a second? Taniguchi: Second. Commissioner Okabe moved to ratify Special Licenses Issued for Ratification, Item Nos. 3(a) through 3(r), License Nos. SP-24-061 through SP-24-078, as stated in the agenda; Seconded by Commissioner Taniguchi. Nishimoto: Any discussion on the motion? There was no discussion by Commissioners. Nishimoto: All those in favor say "Aye." The Commissioners voted "Aye." Nishimoto: All those opposed say "Nay." There was no opposition by Commissioners. The motion was carried unanimously. MINUTES - LIQUOR COMMISSION MEETING & PUBLIC HEARING - THURSDAY, NOVEMBER 7, 2024 - HILO PAGE 15 OF 30 4. Transient Vessel Licenses Issued for Ratification (10: 16 AM) a. License No. TV-24-018, Viking Cruises USA Ltd., dba Viking Neptune, for a Transient Vessel liquor license, in port at Hilo Harbor, Hilo, Hawaii, on November 2, December 4 & 20, 2024; Jauuary 5 & 24; February 6; and March 10 & 27, 2025. b. License No. TV-24-019, Viking Cruises USA Ltd., dba Viking Neptune, for a Transient Vessel liquor license, in port at Kona Harbor, Kailua-Kona, Hawaii, on November 3, & December 23, 2024. C. License No. TV-24-020, NCL (Bahamas) Ltd., dba Norwegian Sun, for a Transient Vessel liquor license, in port at Hilo Harbor, Hilo, Hawaii, on October 20 & 28; November 15 & 24, 2024; May 30 & 31; & June 7, 2025. d. License No. TV-24-021, NCL (Bahamas) Ltd., dba Norwegian Sun, for a Transient Vessel liquor license, in port at Kona Harbor, Kailua-Kona, Hawaii, on June 1 & 87 2025. e. License No. TV-24-022, Innersea Discoveries LLC, dba My Safari Explorer, for a Transient Vessel liquor license, in port at Kona Harbor, Kailua-Kona, Hawaii, on November 23; December 7 & 21, 2024; January 4 & 18; February 1 & 15; March 1, 15, & 29; April 12 & 26, 2025. Nishimoto: May I have a motion to ratify? Okabe: Motion to ratify. Nishimoto: May I have a second? Yadao: Second. Commissioner Okabe moved to ratify Transient Vessel Licenses Issued for Ratification, Item Nos. 4(a) through 4(e), License Nos. TV-24-018 through TV-24-022, as stated in the agenda; Seconded by Commissioner Yadao. Nishimoto: Thank you, any discussion on the motion? There was no discussion by Commissioners. Sayles: Madame Chair, there was an amended license, and I had the amended one in front of you, License No. TV-24-018, for the record. That was just a typo (typographical) and it was corrected, I believe it said "March 10 & 27, 2024," and the correction was MINUTES - LIQUOR COMMISSION MEETING & PUBLIC HEARING - THURSDAY, NOVEMBER 7, 2024 - HILO PAGE 16 OF 30 made, it should be March 10 & 27, 2025. And the agenda was corrected when it was posted, so just making that correction on record. Nishimoto: Okay, thank you, any other discussion? There was no further discussion by Commissioners. Nishimoto: Let's take a vote, all those in favor say "Aye." The Commissioners voted "Aye." Nishimoto: All those opposed say "Nay." There was no opposition by Commissioners. Nishimoto: Item Nos. 4(a) through 4(e) have been ratified. The motion was carried unanimously. IX. Announcements (10:17 AM) Meetings of the Liquor Commission November 7, 20249 1:00 P.M., PUBLIC HEARING ON THE PROPOSED AMENDMENTS TO THE RULES AND REGULATIONS, Hilo Meeting Room, Department of Liquor Control, Hilo Lagoon Centre, 101 Aupuni Street, Unit 230, Hilo, Hawaii. December 5, 2024, 10:00 A.M., Kona Meeting Room, Department of Liquor Control, 75-5706 Kuakini Highway, Suite 107, Kailua-Kona, Hawaii. December 5, 2024, 1:00 P.M., PUBLIC HEARING ON THE PROPOSED AMENDMENTS TO THE RULES AND REGULATIONS, Kona Meeting Room, Department of Liquor Control, 75-5706 Kuakini Highway, Suite 107, Kailua-Kona, Hawaii. January 9, 2025, 10:00 A.M., Hilo Meeting Room, Department of Liquor Control, Hilo Lagoon Centre, 101 Aupuni Street, Unit 230, Hilo, Hawaii. Gonzalez: Just informing the Commissioners that myself, Commissioner Greenwell, and Liquor Adjudication Board Member Dawn Raymond traveled to Montana to represent our office at the National Conference of State Liquor Administrators Central Western Regional Conference. You guys were all emailed the reports, but we gave you guys a hardcopy, and if there were any questions, now is the opportunity. MINUTES - LIQUOR COMMISSION MEETING & PUBLIC HEARING - THURSDAY, NOVEMBER 7, 2024 - HILO PAGE 17 OF 30 Greenwell: I'd like to commend Brandon if people haven't read that report, very well written, it was a good report. Nishimoto: And it was a good trip, you had said it was a very good trip. Okay, anything else? Okabe: I had a question about, you know on the second page, the second paragraph about the cannabis, what is that saying? Being used in cocktails as well, Panel 3, the second paragraph. Gonzalez: Right, so there's a trend where they're adding the THC (tetrahydrocannabinol) to cocktails, or they were already providing edibles in certain bars on the mainland, so that's something that more jurisdictions are becoming aware of as more states are getting asked if they can allow it or not. And then, sometimes they're not being added to alcohol cocktails, but they're being served in a bar. So, there's your regular standard alcohol drinks, but there's also THC-infused (tetrahydrocannabinol-infused) drinks with no alcohol also being offered in the bar. And so, there's a question on how that's going to be regulated, and what the duties are of the licensee. As you guys are aware, that have gone to some of the trainings, we do have states that the regulation of marijuana and THC (tetrahydrocannabinol) is also done by their Liquor Enforcement Agency, they have a dual role. We're not there yet, in fact our State was exploring it, so that's why a lot of the discussion came up to talk about the trends and how the business models are changing and evolving, so it was that type of discussion. Okabe: But reading that at our conference, they never talked about those kind of things yeah, you know what I mean? Takase: I think they have at the national level, they've been talking. Okabe: Oh, the national level, but not at our convention in Maui, they didn't talk about that. Takase: Although, nationwide most of the liquor departments are run by the state, we're one of the few that is drilled down to the county level. So, it's kind of unnatural for them once they start again, I think there's probably a dozen states down there that have approved marijuana. Most of them by and large have attached it to their liquor departments, so it's a big increase for them. I talked to the Oregon guy, he says they went from 100 agents or 100 employees, and with marijuana they added 300 more people to their staff, so it's a big deal because once they decriminalize marijuana, they're going to defund portions of the police department. I don't see us going the same route because I think we will get to recreational marijuana one of these days, but since we're a county -run organization, I don't see the State giving up the revenue from that to the counties. It's like tobacco, they kept it all up at their level even though they keep asking us to do enforcement for them. But same thing, I don't think they'll give up their revenue, they'll keep it up at their level. And so, we will probably resist taking over any of that. MINUTES - LIQUOR COMMISSION MEETING & PUBLIC HEARING - THURSDAY, NOVEMBER 7, 2024 - HILO PAGE 18 OF 30 Okabe: But however, even if they resist at the State, the investigation and everything is at the County level, right, you know what I mean? For when they gotta go to the policing and stuff like that where agents are from the County. So, any legislation that goes to the State, even if it's the revenue, the County has to be involved in the discussion as to what is going to be the parameters of the County. Takase: Yes, so even if they kept it at the State level, if we were to take over enforcement of it, it would probably be with a big grant or something, but Police get a lot of money from the State through the AG's (Attorney General's) and whatever to help run all their programs, you know Green Harvest and these things, those are basically State- runned programs. So, I would expect we would do something similar, but I got a feeling they're not going to give it up. So, you know, we're probably a little ways off, you know but every year it comes up in the legislature, so one of these days it will make it through think. Greenwell: Well for your information, couple years back, Brandon and I went to I believe it was Portland or Seatle, anyway, at that time they told us if you plan to take over the marijuana in your liquor department, plan for five years of education and three years of multiplying your enforcement, they said it's that bad compared to alcohol. And they told us from Canada to the Northwest, they said they're swamped with problems, they said alcohol became second nature. They're all concerned about the marijuana and the illegal production, they said it's a headache, they told us, that was five years maybe. Gonzalez: Yes, Portland right, 2021, 1 think. Takase: So, it's been kind of a good social experiment because we've monitored what has happened, so Colorado was the first state to go and it's kind of out of control right now, they're saying they've lost control of it. What they did was they just treated it like liquor, and you could apply for a growing permit up to 25 plants. So, they did that and that's how they were going to deal with it, but what they didn't anticipate happening was all the cartels had moved in, and so they're buying up houses and warehouses, and whatever they can find, and then they're just stockpiling permits, so they have huge growing operations. So, once you grow inside of the United States, it's hard for them to control, to cross the borders they have border security and all that, but once they're in the United States, they have very little control over them. So, they're probably the hub for marijuana production and distribution in the U.S. (United States) now. I look at Washington, I think has the best model that we've seen so far, and what Washington does is they actually grow all the marijuana themselves. And somehow, they're able to introduce an isotope into the plant, so when the police recover the marijuana, they can tell, I guess they just shoot it with infrared, and they can tell right away if it's theirs or not, and if it's not theirs, then you'll be arrested. So, it's becoming that level of sophistication, it's a lot harder than liquor because liquor is highly regulated, it's produced by manufacturers and stuff. You know marijuana is still kind of a cottage industry, how they get it and how it's done is still all over the board, so there's no one mechanism, so that's why they're having so much trouble with enforcing it. And then, once it's kind of legalized, it's hard to enforce because before you could go by smell, but MINUTES - LIQUOR COMMISSION MEETING & PUBLIC HEARING - THURSDAY, NOVEMBER 7, 2024 - HILO PAGE 19 OF 30 now legalized or not, it's hard for the police to get involved with it because you still need probable cause if you think it's illegal, but how do you show it's illegal? So, that's why say the Washington model is pretty good, you know they can just shoot the thing and tell whether it's legal marijuana or not. So, if Hawaii was going to do such a thing, would think that's the way to do it. Taniguchi: But that wouldn't get rid of the black-market kind? Takase: Well, it kind of does. Taniguchi: Maybe it was before Brandon's one, but we went to another NCSL (National Conference of State Legislators), we thought it would wipe out the black market, but it flourished. And then, a lot of stuff like the impaired driving, there's no test for that, and all that kind of stuff. And so, they said come see us, so I talked to couple of our legislators, and they said no worry we going put it on the Department of Health. So, said good luck, you know but it is a big problem until they solve all those other things because plenty things, and they said have your people come over, you know we'd be happy to share, but our guys no like go over. Takase: So, the Colorado and Nebraska border, I guess they said all the Nebraska troopers just park at the border, and if they have a suspicious looking car, they'll find some reason to stop you and search you, and they catch a lot of them. So, I know Nebraska is complaining about Colorado guys coming in, but it's a big problem. Gonzalez: So, Mr. Okabe, sorry so I may have not been clear too in the beginning, but that was part of the issue with the session, like it just raised a lot of questions and stirred a lot of thought, because the focus for this part though was the THC (tetrahydrocannabinol.) So, the THC (tetrahydrocannabinol) is not the plant, it's an extract, it's odorless and colorless, so they just add it to the drinks, so you can't even tell if it's being added, and there's still not enough studies or science to determine, you know like for alcohol, there's been studies on how it's processed by the body, it affects different people in different ways. But there's a certain amount of BAC (blood alcohol content) where it's been defined legally as someone is intoxicated, and that's what they're still trying to get information on is what are the levels that cause certain impairments with the THC (tetrahydrocannabinol) extract that might be used. So, that was some of the questions that was raised, that's kind of what I meant with that, they're being used in cocktails as well, I was focusing on the extract. Takase: Yes, so we don't have any locally but we're starting to see production on the mainland, putting THC (tetrahydrocannabinol) in the cocktails and sell it that way, especially with these ready -to -drink things. I don't see any on the market here locally but I'm sure it's coming. Gonzalez: We were asked, I want to say maybe four years ago, one place asked if they could add it, we referred them to the Department of Health because of that. MINUTES - LIQUOR COMMISSION MEETING & PUBLIC HEARING - THURSDAY, NOVEMBER 7, 2024 - HILO PAGE 20 OF 30 Nishimoto: Okay, anything else? We did see that in Vermont as well when we went, they showed us pictures of what it looked like in the can, you know so that was interesting. Okay, so I believe we are going to have a recess until 1:00 p.m. for our public hearing. So, we will reconvene back here at 1:00 p.m.? Takase: Well, maybe do this, we can't go over until 11:00 a.m., but the public hearing is coming up on the rules, but if you folks have any questions on the rules maybe ask now. Greenwell: Like what kind questions? Takase: Whatever your questions are, so come 1:00 p.m. you guys are a little more clear, I don't think anybody is going to show up, but in case people do and they have questions. If you have a question, you can ask that. Greenwell: Let's talk about the first item, we're going to define it as a half gallon, a gallon, what is the difference between wine and malt as far as serving in a growler? Takase: So, don't get hung up on the term "growler." Growler is talking about the container, not so much the size of it. But, if we go into the changes, what we tried to do was standardize the sizes, because we had all different sizes from retail, dispensers, so to try and bring them all close together, that's what we did. On the restaurants, we're going to go to half gallons, except for the ones that are regular dispensers, so restaurants went to half gallon. Gonzalez: Wineries are already at one gallon. Takase: Yeah, I think brewers we left at one gallon too. Gonzalez: Your Class 18 under R. (of the Rules and Regulations of the Liquor Commission) was like the Director said, they had one section that was half a gallon, and one section where it's one gallon, depending on what is being manufactured. Takase: So, the beers will allow a larger serving than wines just because of the alcohol content. Nishimoto: So, the important part is that when it is stated, it's going to define the capacity of one-half gallon, opposed to the Small Craft Producer growler size to one gallon, so it's going to be specifically stated like that under each? Gonzalez: I think what the Director said is this, an example is our Class 18 growler was specific in the material being used, it said glass, ceramic, or metal, but our rule changed and the definitions encompasses all of that, but it's more broad. So, it just says recyclable or reuseable container, because we get questions from people asking why can't they use glass or a BPA-free (bisphenol A -free) plastic. Takase: Or plastic bucket, or they want to fill milk jugs. MINUTES - LIQUOR COMMISSION MEETING & PUBLIC HEARING - THURSDAY, NOVEMBER 7, 2024 - HILO PAGE 21 OF 30 Gonzalez: So, we're consistent with what the federal TTB (Alcohol and Tobacco Tax and Trade Bureau) did in updating their definitions of what can be used as a container for like their wines and ready to drinks, so that's why you see now there's wine in aluminum cans, not just glass anymore or other types of recyclable materials. Takase: So, the growler definition is more for not so much the size. Gonzalez: But the material being used. Takase: According to the rules, it will talk about how much each one can dispense. Greenwell: So, in the definition of the growler, the definition will be either a one -gallon container, or Takase: No, just forget about the size, it's just either glass, ceramic, or metal, that's what the growler is talking about, so don't mix up with the definition with the size of it, we really got to go to who's dispensing what. I think we tried to make most of them standardized. Gonzalez: The good news, Mr. Greenwell, is our maximum size is a gallon. So, that's why I see your question in the definitions, the main thing is the first five words, "a recyclable or reuseable container." And then the back end of the sentence says, "It does not exceed one gallon." But like the Director is saying, each of our specific rules for the class of license specifies the maximum size they can use. The good thing is the overall definition for the type of material doesn't exceed the specific rules either so it's consistent, if that helps. Greenwell: So, it's set what the manufacturer of the growler is, that's the point that you're making, it's going to be either glass, ceramic, or stainless steel, aluminum or whatever it is? Takase: Yes, and there's some requirements for them to fill, it has to be sterilized, all of those things as well. So, the people dispensing it know that, so it's not like, yeah just bringing your container, so it's a little different, and you know the reason we kind of getting into this is because prior to that everything is filled, pre -packaged. But you know, now we're kind of allowing this to dispense from kegs or barrels or whatever. So, that's something new that's come about, and it was kind of there before COVID (coronavirus disease), but you know COVID (coronavirus disease) kind of pushed it along. And so, we're just trying to make our rules match up to what's allowable for everybody to understand. If you go across the country now, you'll find that a lot of these places have growlers because there's lots of craft brewing, craft distilling, and those things. We haven't come across distilling yet, but I'm sure that's going to come up, so we're going to have to deal with that shortly. Are you satisfied? Greenwell: Yes. MINUTES - LIQUOR COMMISSION MEETING & PUBLIC HEARING - THURSDAY, NOVEMBER 7, 2024 - HILO PAGE 22 OF 30 Takase: So, look through the rules, like I said, I kind of don't think anybody is going to come. In putting these rules together, Stacie, Brandon, I, and the investigators kind of worked on this thing for 1-2 years, it's been a while coming. We finally got our draft to everyone, and then we met with representatives of the industry, so we tried to pick small retail, big retail, hotel, restaurants, bars, and wholesalers from each side. We met with all of them, and they've gone through the rules, and you know they had input and stuff. By and large, they were satisfied, and then Brandon took this to the Small Business Regulatory Board for public hearing, and they were satisfied, and their purpose is really to make sure we're treating small businesses fairly. But by and large, these rules were all to help small businesses, so they passed with flying colors, so that's why we're here right now. So, we'll go through it today, and go through it in December, and if there are no other big changes, we will pass this in December. So, if you have questions, our next meeting is the final time to bring it up. Taniguchi: Where were we on powdered alcohol? Takase: Powdered alcohol is illegal by State statute, it hasn't changed, and I think the company that was doing it just folded because there was kind of a big cry from across the nation, so I know it was the fastest thing I ever seen prohibited. Taniguchi: When I was in Japan, they had them on the shelf, I go wow this is illegal but, I wonder if it's still illegal for us? Takase: It is. RECESSED AT 10:42 A.M. RECONVENED AT 1:00 P.M. PUBLIC HEARING NOTICE PROPOSED AMENDMENTS TO RULES AND REGULATIONS LIQUOR COMMISSION OF THE COUNTY OF HAWAI`I Pursuant to Chapter 91, Hawai `i Revised Statutes, the County of Hawai `i Liquor Commission will hold public hearings regarding proposed amendments to its Rules and Regulations. Public hearings to be held on: Thursday, November 7, 2024 1:00 P.M. Kilo Liquor Control Conference Room 101 Aupuni Street, Unit 230 Kilo, Hawai `i MINUTES - LIQUOR COMMISSION MEETING & PUBLIC HEARING - THURSDAY, NOVEMBER 7, 2024 - HILO PAGE 23 OF 30 Thursday, December 5, 2024 1:00 P.M. Kona Liquor Control Conference Room 75-5706 Kuakini Highway, Suite 107 Kailua-Kona, Hawaii To accept public testimony on the proposed amendments. Written testimony must be received no later than December 2, 2024, and may be mailed or delivered to the Department of Liquor Control, 101 Aupuni Street, Unit 230, Kilo, ICI 96720; sent by fax to (808) 961-8684; or emailed to cohdlckhawaiicounty.oovv. All testimony will be included in the record of the hearing. The significant changes are summarized as follows: RULE 1-1 Definition of "Growler." Definition of "Written" or "Writing" to include electronic format. RULE 1-5 Allow quorum at electronic meeting. *Do we need to say "properly noticed." RULE 1-11(13) Add changes to County of Hawaii. *Add Island of Hawaii reference. RULE 3-1 (13) Manufacturing — delete amendment — redundant. Changes to higher class treated like a new license; lower class can be done without public notice. Restaurant licenses can be issued immediately with a pledge to meet 30%. May sell to -go liquor. (E) Class 4 Retail Dealer —curbside delivery will be permitted. (K) Class 10 Special —increase the amount of liquor which: Non -profits may offer at auction. Define documents needed to accompany an application. Delete fee structure for special licenses. (M) Class 12 Hotels —delete room requirements for class. Authorize the sale of growlers not to exceed capacity of one half -gallon. (0) Class 14 Brewpub —amend size of growlers. May open secondary locations. Minors may accompany parents/legal guardians onto premises. May provide catering operations of food and alcohol. May sell to -go liquor with meal service. (Q) Class 16 Winery —magnum does not need to be a glass container. Allow catering. May sell to -go liquor with meal service. MINUTES - LIQUOR COMMISSION MEETING & PUBLIC HEARING - THURSDAY, NOVEMBER 7, 2024 - HILO PAGE 24 OF 30 (R) Class 18 Small Craft Producer —increase production of malt beverage to 70,000. Include wine in production. Include growler size to one gallon. May open secondary locations. Allow minors to accompany parents/legal guardians. May provide catering operations of food and alcohol. May sell to -go liquor with meal service. RULE 3-3 Basic Fees — eliminate fees for special. RULE 3-7 Direct Shipment of wine by wineries — add report of who shipped to. RULE 3-8 Fours of Business — allow manufacturers/wholesalers — 24 hours open. RULE 4-2 License Application/Transfer —eliminate need for IRS tax clearance. (I)- Additions/Withdrawals —allow 90 days to notify Commission of changes. (M) —Approval and Issuance —allow extension for 12 months. RULE 4-3 Temporary — Amend original within 45 days requirements — does not have to apply for same class, kind and category as previous licensee. RULE 4-6 Corporations/Partnerships/LLC *LLC — should make generic to recognize any type of business. Include language regarding transfer of Membership Interest. Remove fit and proper reference. Allow 90 days to notify Commission of changes. RULE 4-7 Renewals — eliminate IRS requirement. Amended submission date to June 15th of each year RULE 4-8 Reduction/Increase — extend to 12 permits. RULE 5-1 Employee Records — eliminate SSN requirement. RULE 5-6 Stacking of Liquor — increase size to 32 ounces for beer. RULE 5-8 Premises — eliminate Department of Health approval re restrooms. RULE 5-10 Possession of Liquor Laws — add electronic or digital copy as acceptable. RULE 6-1 (D) Minors in Licensed Premises —amended wording to: person in active charge of the premises RULE 6-2 Drive -In Retail Sales — permitted. MINUTES - LIQUOR COMMISSION MEETING & PUBLIC HEARING - THURSDAY, NOVEMBER 7, 2024 - HILO PAGE 25 OF 30 CALL TO ORDER The Public Hearing was called to order by Vice Chair Okabe at 1:00 P.M., in the Hilo Meeting Room, Department of Liquor Control, Hilo Lagoon Centre, 101 Au pu n i Street, Unit 230, Hilo, Hawaii. The following were present and constituted a quorum: Commissioners: Wil Okabe, Vice Chair Doug Espejo, Commissioner David Greenwell, Commissioner Arthur Taniguchi, Commissioner Jennifer Yadao, Commissioner Absent and Excused: Laurisa Nishimoto, Chair Melvin Ventura, Commissioner Jennifer Wilkinson, Commissioner Others Present: Gerald Takase, Director Brandon Gonzalez, Administrative Officer Ihna Kandatsu-Kang, Deputy Corporation Counsel Stacie Waltjen, Licensing Officer Hau`oli Sayles, Commission Secretary Takase: So, we're meeting on the proposed rules and regulations for the Department of Liquor Control. By way of background, the Department has been working on this project for probably at least a year now, we sought input from our staff, and from licensees. So, we've gone through this process, we sought input from everybody, we developed a final set of rules, and the final set we again circulated it not to everybody, you folks have it, the industry representatives have copies of it, both the Hilo side and the Kona side, so they've looked at it. Like I said, Brandon took these rules to the State Small Business Advisory Board, it's a Commission of representatives. I think our two representatives are Kimo Lee and Garth Yamanaka, and they look at whether there's affects on small businesses or not. Like I said, all of these rules really go to help them, not to take anything away from them, we offered them more support. So, they were happy with that, and now we're at the third step to get to the public hearing. So, notices were published, Hau`oli? Sayles: Yes, it was published at least 30 days prior to the hearings on October 5t" (West Hawaii Today), and 6t" (Hawai'i Tribune Herald), for November 7t", and December 5t" Takase: Okay, and then we'll have a second hearing in Kona after our next Commission meeting. And then, after that with no major changes, we'll be ready to act, so I want to try and vote on it that day if we can since I have all of you folks, Doug is leaving technically December 31 St, but you'll probably stay on for a couple more months. So, at least we can finish that item, I guess during the interim, you guys can take a look MINUTES - LIQUOR COMMISSION MEETING & PUBLIC HEARING - THURSDAY, NOVEMBER 7, 2024 - HILO PAGE 26 OF 30 at it again, if you guys think of other stuff that you want to see in, or you have questions about, let us know so we can address it. You guys have any questions about the procedures, or any questions about the rules again? Anything that you don't see in the rules that you think we should address? Taniguchi: I just had a question about the electronic meeting, a lot of people go to that. What's the Department's thought on it? Takase: So, during COVID (coronavirus disease) we had electronic meetings, we got away from it because my understanding from the Commission at the time was, they wanted to see them in person, so we went away from that. And there's some difficulties with doing it electronically because we have the projector and all of that, but if we go down during the meeting, it kinds of jams ourselves up because we gotta stop the meeting. If we don't have all the Commissioners at the meeting and you folks are appearing by Zoom or whatever, if you guys lose your connection, we're down again. So, there's little technical problems in there, so you know at the time we were meeting right after COVID (coronavirus disease), they decided okay, the worst of COVID (coronavirus disease) was over, so they wanted to meet in person. I know, we don't ask the licensees or the applicants a lot of questions, but that opportunity is there, and you know sometimes to just see them gives you an impression of them of what you think. That was one of the things the auditor brought up, "I noticed you guys don't talk a lot during the meetings. I said well our Licensing Officer does a good job on the reports, so I think a lot of the questions are answered already, but you guys are free to ask more questions. In the old days, they would ask stuff like, "So, what kind of menu are you going to have?", and just stuff like that, it doesn't have to be directly on point. But I think they feel better if you ask them something because they came. You know, sometimes they come from off -island, you know I mean they're happy to just get it over with, but you know if it's not really hard questions, I'm sure they'll be more than happy to answer. Espejo: You're right about having everything vetted already, so all the questions have been answered, so in the essence of time, a lot of times the question doesn't get asked because it's already been answered. Takase: But we can take longer than 15 minutes. So, it's not really a criticism it's just you know to make you feel and make them feel more at ease, like you know they come before us and they're like so serious, and that's why I say they're actually happy you don't ask them questions. Greenwell: Gerald? Takase: Yes. Greenwell: One thing that I talked to Stacie about that I marked on my sheet here was the elimination of fees for the Special permits and stuff, is there ever going to be any limitation on how many special permits somebody can pull a year? Takase: Well, that's really up to you folks. MINUTES - LIQUOR COMMISSION MEETING & PUBLIC HEARING - THURSDAY, NOVEMBER 7, 2024 - HILO PAGE 27 OF 30 Greenwell: We're not giving the farm away, but we're doing away with their fees? Takase: Yes, so the State Legislature, they dropped the special permits to two categories, non -profits and politicians. So, those were the only two that can apply for a special license now, and they said they don't think they should have to pay, and that's fine because I think we were charging $20.00 or $25.00. And you know, for a non- profit, yeah why are we going to make them pay, it's just taking away from whatever fundraising they're trying to do, so that's fine. We have had in recent history now, some non -profits that are applying for a lot of special licenses, you see the Elks, and the Veterans of Foreign Wars. Now, they're in the licensing process, in fact they're ready to go, we approved them and everything, they just can't get their final approval, so that's why they're stuck, and so they keep applying and we keep approving them. At some point, they're going to figure out, "Hey, wait a minute, I don't need a license, I can just apply for a special license." They're going through with it, and so that's why I don't want to give them a hard time about it, we just approve them. So, we don't have any limit on them right now, and we don't have a limit on anybody guess, so you know they can all apply. If you folks decide that we don't want to do it, then you know you can propose that as a rule amendment. I'll tell you from the Department standpoint, it's not that big of an imposition for us, and we would rather have them apply and go through the process and know what's going on out there, rather than if we say okay, you can have one a month, and they get into a situation where they're going to have more than one, they're stuck. Now, what do I do, do I postpone my event, or do I just have it and not tell us, so we kind of have a good working relationship with the non -profits. So, my feeling is that they're trying to do some good for the community, so I don't want to stand in their way, if we can assist them in promoting their events, we'll go that route. But we weren't going to make any money from it anyway, and we weren't making much anyway, it's a very small portion of our revenues so that wasn't a problem. But you folks are the Commission, you guys have the authority to set it. You see Honolulu is taking it a step further, they're have trouble, same kind of problems like us with building permits and planning and all that, so if you heard Anna at the state conference, they have a special revenue producing permit now. I don't know how they did that, but it's kind of similar to what we're doing you know, we just approve them and we give them the temporary, they're not approving them yet, they'll just give them a special permit to operate until they get their license. So, I guess it's two ways to tackle the problem, so at least I'm glad that they're addressing it, you know before it was just like sorry, you're not going to get a license until something happens with the other agencies. But I think they were kind of looking at what we were doing, the licensees said, "We can get a license on the Big Island, what's wrong with you guys?" So, we just grant them the license because for all other intents and purposes, they passed, we vetted their ownership and all of that. They've done the work at their place, they're just waiting to get a building inspection done, and this election maybe that's a sign of frustration by the business side that things aren't happening as fast as they'd like. We've got several licensees that's been almost a year now, and we can't help them, and we feel sorry for them, that's why we allow them to operate. Stacie goes out and MINUTES - LIQUOR COMMISSION MEETING & PUBLIC HEARING - THURSDAY, NOVEMBER 7, 2024 - HILO PAGE 28 OF 30 looks, the investigators go out and look, if everything looks like it's done properly, we'll give them the license temporarily and let them operate so at least they're not sitting over there unable to open. I think that alleviates a lot of the stress on not only the licensees, but probably the departments because they're not in there hounding them everyday because they can't open. These guys monitor social media, we've got some of our licensees complaining about the speed at which Public Works is moving, and they're going to be in there complaining. So, I don't want to contribute to that problem, that's kind of why we let them open, so that kind of relieves some of the pressure on everybody. Gonzalez: You folks got the summary of the rule changes, is that what you're working off of? Takase: That's what they're working off of. We'll email the full version out to you guys, and it highlighted and annotated so you don't have to read, you can just look at the highlighted portions and underlined. Can you send that out to all the Commissioners? Well, I guess nobody is showing up, although not unexpected. Gonzalez: For the record, there was no one from the public. Takase: Ihna, you got anything to add? Kandatsu-Kang: No, everything looks good. Takase: Okay, I guess we can adjourn the public hearing, thank you guys. Okabe: Let's make a motion to do that, can the Chair entertain a motion to adjourn the meeting? Taniguchi: So, moved. Espejo: Second. Commissioner Taniguchi moved to adjourn the meeting and public hearing; Seconded by Commissioner Espejo. Okabe: Okay, moved and seconded. Discussion? There was no discussion by Commissioners. Okabe: All in favor say "Aye." The Commissioners voted "Aye." Okabe: All opposed, "Nay." There was no opposition by Commissioners. MINUTES - LIQUOR COMMISSION MEETING & PUBLIC HEARING - THURSDAY, NOVEMBER 7, 2024 - HILO PAGE 29 OF 30 Okabe: Motion carried. The motion was carried unanimously. X. Adjournment Meeting adjourned at 1:19 P.M. 21d Takase Director The November 7, 2024 meeting/public hearing minutes were approved as circulated, via email on November 28, 2024, by the Liquor Commission of the County of Hawaii on December 5, 2024. MINUTES -LIQUOR COMMISSION MEETI I PUBLIC HEARING - THURSDAY, NOVEMBEP�1, .024 - HILO PAGE 30 OF 30