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HomeMy WebLinkAbout2020-05-21 Liquor Adjudication Board MinutesCOUNTY OF HAWAII DEPARTMENT OF LIQUOR CONTROL LIQUOR ADJUDICATION BOARD MINUTES — MAY 21, 2020 WEBEX I. Call to Order The meeting was called to order by Chairman Riley Smith at 10:00 A.M. The following were present and constituted a quorum: Board Members: Riley Smith, Chair Andi Pawasarat, Vice Chair Dwayne Mukai, Board Member Art Taniguchi, Board Member Absent and Excused: None Others Present: Gerald Takase, Director Brandon Gonzalez, Administrative Officer Renee Schoen, Assistant Corporation Counsel (Department/Prosecutor) Craig Masuda, Deputy Corporation Counsel (Board) Dorsi Lim, Secretary to the Board & Commission Smith: I'm going to run the meeting and if I see the hand on my screen, then I'll know you'll want to say something. If I don't see that, I am not going to know that, unless you give me a visual cue from the video. Gonzalez: Riley, regarding the second part for the participants, if you hover your mouse over the video screen... At the bottom middle of the screen above the individual tiles, you're going to see buttons, a microphone, a camera, and there's one that looks like a person carrying a cheeseburger. If you click on that "person looking" button, a list of the participants should show up on the right side of your screen. That's what the Chair is talking about. He can view you. During the meeting, if you want to say something, you might have a toggle depending on your version, to raise your hand. That's where it would show up on the right hand side of your screen. Thank you. Taniguchi: Yes, it shows, once you go to that screen, it shows that you want to raise your hand. Smith: What I'm going to do when running the meeting is, if I see the hand up on the right hand side, I'll call people to respond to have them speak before we move on to the next item. Hawaii County is an Equal Opportunity Provider and Employer Smith: We'll now do a roll call to determine who is present at the meeting. Present, Riley Smith, Chair. Andi, are you present? Andi, Vice Chair. Pawasarat: Present. Smith: Dwayne Mukai, Board Member? Mukai: Present. Smith: Mahalo. Art Taniguchi, Board Member? Taniguchi: Present. Smith: Gerald Takase, Director? Takase: Present. Smith: Brandon Gonzalez, Administrative Officer? Gonzalez: Present. Smith: Renee Schoen, Assistant Corporation Counsel? Schoen: Present. Smith: Craig Masuda, Deputy Corporation Counsel? Masuda: Present. Smith: Dorsi Lim, Secretary to the Board? Lim: Present. Smith: Thank you very much. II. Approval of Minutes Smith: Moving on to Item No. 2, Approval of Minutes. The February 20, 2020, meeting minutes were circulated via email on May 14, 2020. Do I have a motion to approve the minutes as circulated? Mukai: So move. Smith: Thank you, Dwayne. Is there a second? Taniguchi: Second. MAY 21, 2020 - LIQUOR ADJUDICATION BOARD MINUTES 2 Mr. Mukai moved to approve the February 20, 2020, meeting minutes as circulated; seconded by Mr. Taniguchi. Smith: Thank you, Art. Any discussion? There was no discussion from the Board Members. Smith: If not, all those in favor say, "Aye." The Board Members voted "Aye." Smith: Any opposition? There was no opposition by the Board Members. Smith: No opposition, hearing none, motion carried. Thank you very much. The motion was carried unanimously. Gonzalez: Mr. Chair, when the individuals make the motion and second, can they please state their name before they make the motion and second? Thank you. Smith: Got it, okay. What I had on that one was Dwayne made the motion and Art seconded that motion. The vote was unanimous. III. Hearings Smith: Section III of our meeting agenda; we're going to go to hearings. Just so everyone knows, we're going to take an item out of order. The first hearing is Case No. 2020-008, Sundries Store. The second one is (Case No.) 2020-009, 7 -Eleven. We'll move to Unfinished Business, Case No. 2020-004, Daylight Mind (Queens' MarketPlace); then we'll go to Case No. 2020-007, Daylight Mind (Waterfront Row), and then on to New Business. Let's start with the first case, Case No. 2020-008, WHR LLC, dba Sundries Store (The). CASE NO. 2020-008 (10:06 A.M.) In the Matter of the Accusation Against WHR LLC, dba Sundries Store (The), located at 93 Banyan Drive, Hilo, Hawaii. Informal hearing (Alternative II) on: COUNT 1 Violation of Section 281-44(a) of the Hawai'i Revised Statutes, as amended, for failure to post a sign in or about the premises containing and notifying all customers and other persons of the possible sanctions that may be imposed for operating a vehicle under the influence of an intoxicant under Sections 291 E-41 and 291 E-61, more commonly known as a "D.U.I. poster," MAY 21, 2020 -LIQUOR ADJUDICATION BOARD MINUTES COUNT 2 Violation of Rule 5-3 of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii, for failure to have a current list of persons in active charge of the premises posted within the licensed premises; and, COUNT 3 Violation of Rule 5-10(B) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii, for failure to post signs regarding (1) illegal sales of alcohol to minors; (2) any signs as required by the Commission; and (3) any other signs required by law. Please state your appearance for the record. Renee? Schoen: Good morning, Mr. Chair and members of the Board, Renee Schoen, Assistant Corporation Counsel on behalf of the Department. Smith: Ms. Schoen, could you please read the Complaint and Accusation, and the Answer to the Complaint? Schoen: In the Matter of the Accusation Against WHR LLC, dba Sundries Store (The), located at 93 Banyan Drive, Hilo, Hawaii, there are three counts. Count 1 states that on or about the the 15th day of January 2020, in the County and State of Hawaii, the Licensee, WHR LLC, dba Sundries Store (The), violated Section 281-44(a) of the Hawaii Revised Statutes, as amended, for failure to post a sign in or about the premises containing and notifying all customers and other persons of the possible sanctions that may be imposed for operating a vehicle under the influence of an intoxicant under Sections 291 E-41 and 291 E-61, more commonly known as a "D.U.I. poster." Count 2 states that on or about the 15th day of January 2020, in the County and State of Hawaii, the Licensee, WHR LLC, dba Sundries Store (The), violated Rule 5-3 of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii, for failure to have a current list of persons in active charge of the premises posted within the licensed premises. Count 3 states that on or about the 15th day of January 2020, in the County and State of Hawaii, the Licensee, WHR LLC, dba Sundries Store (The), violated Rule 5-10(B) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii, for failure to post signs regarding: (1) illegal sales of alcohol to minors; (2) any signs as required by the Commission; and (3) any other signs required by law. The Licensee, WHR LLC, dba Sundries Store (The), has selected Alternative II, admitting to the allegations and waives its right to a hearing and appeal, but requested an informal hearing to present the circumstances surrounding the violations. MAY 21, 2020 - LIQUOR ADJUDICATION BOARD MINUTES 4 Smith: Thank you very much. May I have a motion to find the Licensee in violation of the charges? Pawasarat: I move to find the Licensee in violation. Taniguchi: I second. Ms. Pawasarat moved that the Licensee in Case No. 2020-008, for Count 1, be found in violation of Section 281-44(a) of the Hawaii Revised Statutes, as amended, failure to post a sign in or about the premises containing and notifying all customers and other persons of the possible sanctions that may be imposed for operating a vehicle under the influence of an intoxicant under Sections 291E-41 and 291 E-61, more commonly known as a "D.W. poster"; for Count 2, be found in violation of Rule 5-3 of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii, Annual Listing of Persons in Active Charge, failure to have a current list of persons in active charge of the premises posted within the licensed premises; and, for Count 3, be found in violation of Rule 5-10(B) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii, failure to post signs regarding (1) illegal sales of alcohol to minors; (2) any signs as required by the Commission; and (3) any other signs required by law; seconded by Mr. Taniguchi. Smith: Thank you, Art. Any discussion amongst Board Members? There was no discussion from the Board Members. Smith: Hearing none, all those in favor say, "Aye." The Board Members voted "Aye." Smith: The Chair votes aye. It's unanimous, thank you very much. The motion was carried unanimously. Smith: Prior to assessing a penalty, we don't have an applicant, right? Gonzalez: Mr. Chair, correct. The Licensee is not present for the hearing. Smith: The Board Members will not be asking any questions of the applicant. Ms. Schoen, please provide the Department recommendation for penalty in this case. Schoen: Mr. Chair, the license was issued on July 1, 2017, and there are no past violations. On speaking with the Licensee, the Department is recommending that Count 1 be dismissed. As for Count 2, impose a $100 fine, and for Count 3, a $100 fine, for a total of $200 to be paid MAY 21, 2020 - LIQUOR ADJUDICATION BOARD MINUTES within thirty (30) days upon receipt of the Decision and Order for the violations, made payable to the Department of Liquor Control. Schoen: Mr. Chair, the bases for that recommendation were that there were no previous violations by this Licensee, they took responsibility, and they took steps to make sure that these types of violations would not be repeated. Smith: Thank you, Ms. Schoen. Do I have a motion to accept the recommendation on this penalty? Mukai: So move. Taniguchi: Second. Mr. Mukai moved that Count 1 be dismissed, and the Licensee in Case No. 2020-008 be assessed a penalty in the amount of $100 for Count 2, and $100 for Count 3, for a total of $200 for said violations, to be paid within thirty (30) days upon receipt of the Decision and Order, made payable to the Department of Liquor Control; seconded by Mr. Taniguchi. Smith: Motion by Dwayne, seconded by Art. Any discussion amongst the Board Members? May I have a roll call vote? Andi, your vote? Pawasarat: Aye. Smith: Dwayne? Mukai: Aye. Smith: Art? Taniguchi: Aye. Smith: Chair votes aye. The motion is carried unanimously. The motion was carried unanimously. Smith: A written Decision and Order will be prepared and served upon the Licensee, which shall be due and payable within thirty (30) days of its receipt. Thank you very much. Moving on to Case No. 2020-009, Seven -Eleven Hawaii, Inc., dba 7 -Eleven Stores (Keaau) #54284. 2. CASE NO. 2020-009 (10:10 A.M.) In the Matter of the Accusation Against Seven -Eleven Hawaii, Inc., dba 7 -Eleven Stores (Keaau) #54284, located at 16-499 Old Volcano Road, Keaau, Hawaii. MAY 21, 2020 -LIQUOR ADJUDICATION BOARD MINUTES 6 Informal Hearing (Alternative 1) on violation of Section 281-78(b)(1)(A) of the Hawaii Revised Statutes, as amended, Sale to a Minor. Ms. Schoen, please read the Complaint and Accusation, and the Answer to the Complaint. Schoen: The Complaint states that, in the Matter of the Accusation Against Seven -Eleven Hawaii, Inc., dba 7 -Eleven Stores (Keaau) #54284, located at 16-499 Old Volcano Road, Keaau, Hawai'i, this is an informal hearing (Alternative 1) for violation of Section 281-78(b)(1)(A) of the Hawai'i Revised Statutes, as amended, Sale to a Minor. On or about the 31 st day of January 2020, in the County and State of Hawai'i, the Licensee, Seven -Eleven Hawaii, Inc., dba 7 -Eleven Stores (Keaau) #54284, did sell, serve, or furnish liquor to a minor (age 19). Schoen: The Licensee has waived its right to a hearing, and we ask that you find the Licensee in violation of the charge. Smith: Thank you, Ms. Schoen. May I have a motion to find the Licensee in violation of the charge? Mukai: So move. Smith: Thank you, and a second? Pawasarat: Second. Mr. Mukai moved that the Licensee in Case No. 2020-009 be found in violation of Section 281-78(b)(1)(A), of the Hawai'i Revised Statutes, as amended, Sale to a Minor; seconded by Ms. Pawasarat. Smith: Thank you, Andi. Motioned and seconded. Any discussion amongst the Board Members? There was no discussion from the Board Members. Smith: If not, Andi, how do you vote? Pawasarat: Aye. Smith: Art, how do you vote? Taniguchi: Aye. Smith: Dwayne? Mukai: Aye. Smith: The Chair votes aye also, unanimously carried. Thank you, very much. The motion was carried unanimously. MAY 21, 2020 - LIQUOR ADJUDICATION BOARD MINUTES 7 Smith: Do the Board Members have any questions of the Department? There were no questions from the Board Members. Smith: Hearing none, Ms. Schoen, please provide the Department recommendation for penalty in this case. Schoen: The license was originally issued November 15, 2011. They have no past violations for the last five years. The Department is recommending a $2,000 fine with $1,000 suspended for one year from the date of service of the Decision and Order, on the condition that there is no similar violation, and that $1,000 be paid within thirty (30) days upon receipt of the Decision and Order, and that it be made payable to the Department of Liquor Control. In this case the Licensee did take responsibility. Their employees were immediately retrained on the liquor laws. As a result, the Seven -Eleven corporate store did order all of their Hawaii stores to no longer accept the vertical IDs as alcohol and tobacco licenses (proof of age). So, they have taken a lot of measures to relegate the issue. They have informed the employees that reading the date incorrectly on an ID is not an excuse. Schoen: The Department's recommendation for this case is a $2,000 fine, with $1,000 suspended for one year from the date of service of the Decision and Order, on the condition that there be no similar violations and that $1,000 be paid within thirty (30) days from the date of service of the Decision and Order, and that it be made payable to the Department of Liquor Control. The Licensee did take responsibility, their employees were retrained, and just reading the date (incorrectly) on an ID is not an excuse. Their corporate offices also ordered all of their Hawaii stores to no longer accept vertical IDs as proof of age. Smith: Thank you very much, Ms. Schoen. Do I have a motion to impose the penalty? Mukai: I move to accept the recommendation of the Department. Smith: Is there a second? Taniguchi: Second. Mr. Mukai moved that the Licensee in Case No. 2020-009, be assessed a penalty in the amount of $2,000 with $1,000 suspended for one year from the date of service of the Decision and Order, on the condition that there be no similar violation of Section 281-78(b)(1)(A) of the Hawaii Revised Statutes, as amended, Sale to a Minor, and that $1,000 is to be paid within thirty (30) days upon receipt of the Decision and Order, made payable to the Department of Liquor Control; seconded by Mr. Taniguchi. Smith: Thank you very much, Art. Any discussion amongst the Board Members? Pawasarat: I wanted to ask Renee if she could repeat the last part of what she said regarding the actions that they had taken. I couldn't hear the very last action. MAY 21, 2020 - LIQUOR ADJUDICATION BOARD MINUTES 8 Schoen: Their corporate offices ordered all of their Hawai'i stores to no longer accept vertical IDs for any alcohol or tobacco sales. Pawasarat: I'm sorry, accept what kind of ID? Schoen: Vertical... Pawasarat: Oh, okay. Smith: Any other questions? Taniguchi: Is that legal? Schoen: Yes. Smith: There's been a motion and second. Any discussion? There was no discussion from the Board Members. Smith: If not, Andi, how do you vote? Pawasarat: Aye. Smith: Art? Taniguchi: Aye. Smith: Dwayne? Mukai: Aye. Smith: Chair votes aye. Motion is carried unanimously. The motion was carried unanimously. Smith: We're going to take the next item out of order. This is Unfinished Business, Case No. 2020-004, Daylight Mind, Inc., dba Daylight Mind (Queens' MarketPlace). IV. Unfinished Business 1. CASE NO. 2020-004 (10:21 A.M.) In the Matter of the Accusation Against Daylight Mind, Inc. dba Daylight Mind, formerly located at the Queens' Marketplace, 69-201 Waikoloa Beach Drive, Space J1, Waikoloa, Hawai'i. Further hearing to review, discuss, adopt Findings of Fact, Conclusions of Law, and issue written Findings of Fact, Conclusions of Law, Decision and Order. MAY 21, 2020 - LIQUOR ADJUDICATION BOARD MINUTES 9 Smith: Renee? Schoen: On February 20, 2020, the Licensee was found to be in violation of Rule 3-6(C) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawai'i, for failure to submit its payment of percentage fees due for the license year by November 15, 2019. Smith: Thank you, Renee. Board Members, we have a couple of decisions (to make) here. We could recess to allow us to review the facts which you have already seen, or we could continue to allow more time, or if you're ready to make a decision, we would need a motion to approve the Findings of Fact, Conclusions of Law. Brandon has put the Findings of Fact, Conclusions of Law, and Decision and Order up on the screen. You all should have received a copy also. If you want to approve those three items, I need a motion. Pawasarat: I move to approve the Findings of Fact, Conclusions of Law, and Decision and Order. Smith: Thank you. Is there a second? Taniguchi: Second. Ms. Pawasarat moved to approve the Findings of Fact, Conclusions of Law, and the Decision and Order as submitted; seconded by Mr. Taniguchi. Smith: Thank you, Art. It's been moved and seconded. Is there any discussion? There was no discussion from the Board Members. Smith: If not, let's vote. Andi, how do you vote? Pawasarat: Aye. Smith: Art? Taniguchi: Aye. Smith: Dwayne? Mukai: Aye. Smith: Chair votes yes. Motion carried unanimously. The motion was carried unanimously. Smith: Ms. Schoen, please provide the Department's recommendation for penalty in this case. MAY 21, 2020 - LIQUOR ADJUDICATION BOARD MINUTES 10 Schoen: Actually, Mr. Chair, you will see that the Department's Findings of Fact, Conclusions of Law, and Decision and Order did contain the penalty recommendation, and that was for the amount of $2,000. Smith: Okay, Ms. Schoen, so the Department is not recommending any waivers or anything? This is actually a Licensee that has left the jurisdiction, right? Schoen: Right, and that is the maximum. Smith: Okay. We have a motion to accept the recommendation of the Department? Mukai: I move to accept the recommendation of the Department. Smith: Okay, do I have a second? Taniguchi: Second. Mr. Mukai moved that the Licensee in Case No. 2020-004, be assessed a penalty in the amount of $2,000, as stated in the Department's Findings of Fact, Conclusions of Law, and Decision and Order, to be paid within thirty (30) days of the issuance of the Decision and Order for said violation, payable to the Department of Liquor Control; seconded by Mr. Taniguchi. Smith: Thank you, Art. Moved and seconded. Is there any discussion from any of the Board Members? There was no discussion from the Board Members. Smith: If not, let's vote. Andi, how do you vote? Pawasarat: Aye. Smith: Art? Taniguchi: Aye. Smith: Dwayne? Mukai: Aye. Smith: Chair votes aye. Motion carried unanimously. The motion was carried unanimously. MAY 21, 2020 - LIQUOR ADJUDICATION BOARD MINUTES 11 Smith: A written Decision and Order shall be provided together with the Findings of Fact and Conclusions of Law. A written Decision and Order shall be prepared and served upon the Licensee which will be due and payable within thirty (30) days of the issuance. Smith: Thank you very much. We're going to move back to the next item. Item 3 (Hearings), which is Case No. 2020-007, Daylight Mind, Inc., dba Daylight Mind Coffee Company at Ali'i Drive. This is a different case than Case No. 2020-004 for Daylight Mind, Inc., dba Daylight Mind (Queens' MarketPlace) for Unfinished Business. There were two different locations that failed to submit percentage fees. The two cases overlap in time. 3. CASE NO. 2020-007 (10:25 A.M.) In the Matter of the Accusation Against Daylight Mind, Inc., dba Daylight Mind Coffee Company, formerly located at Waterfront Row, 75-5770 Ali'i Drive, Restaurant 1, Kailua-Kona, Hawaii. Formal Hearing (Alternative III) on violation of Rule 3-6(C) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawai'i, State of Hawai'i, for failure to submit its payment of percentage fees due for the license year by November 15, 2019. Smith: I believe the Licensee is not present. It is my understanding that after diligent search by the Department, the Licensee in this case cannot be found, resulting in this matter defaulting to Alternative III, Formal Hearing, pursuant to Rule 1.8(d). This is for violation of Rule 3-6(C) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawai'i, State of Hawai'i, for failure to submit its payment of percentage fees due for the license year by November 15, 2019. Smith: Ms. Schoen, are you ready to proceed with the case? Schoen: Yes, I am, Mr. Chair. Smith: Please proceed. Schoen: Mr. Chair, the complaint states that on or about the 15th day of November 2019, in the County and State of Hawai'i, the Licensee, Daylight Mind, Inc., dba Daylight Mind Coffee Company, did fail to submit its payment of percentage fees due for the license year, in violation of Rule 3-6(C) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawai'i. Schoen: I have exhibits that should have been emailed to the Board Members. They consist of Exhibits 1A through C, which documents the Department's efforts to serve Mr. Colin Finn at his last known residential and business addresses. You will see that Exhibits 1A and B show the proof that we mailed to him at the last known business address and residence MAY 21, 2020 - LIQUOR ADJUDICATION BOARD MINUTES 12 address. (Exhibit) 1 C and 1 C(2) provides proof that our mailing was returned to this office as "unable to forward or deliver" on April the first. On that basis, we ask that sufficient notice was provided to the Licensee of this hearing, and that the Board accept this evidence as submitted. Smith: Thank you very much, Ms. Schoen. My script says that I'm supposed to swear in a witness. Does someone need to be sworn in? Schoen: No, Mr. Chair. We're asking that the exhibits provided to the Board be accepted as evidence. Masuda: Mr. Chair, you have to move to accept the evidence. Smith: Thank you. May I have a motion that the Department made diligent efforts to duly notify Licensee of this proceeding, that notice to Licensee was made pursuant to HRS and Liquor Rules, that the Department may proceed with this Alternative III Formal Hearing in the Licensee's absence, and that the Board may adjudicate the complaint and assess penalties as necessary pursuant to Rule 1.8(d). Do I have a motion? Mukai: So move. Taniguchi: Second. Mr. Mukai moved to accept that the Department made diligent efforts to duly notify the Licensee of this proceeding, that notice to the Licensee was made pursuant to HRS and Liquor Rules, that the Department may proceed with this Alternative III Formal Hearing in the Licensee's absence, and that the Board may adjudicate the complaint and assess penalties as necessary pursuant to Rule 1.8(d); seconded by Mr. Taniguchi. Smith: Thank you Dwayne, thank you Art. Any discussion? There was no discussion from the Board Members. Smith: If not, call for the question. Andy, how do you vote? Pawasarat: Aye. Smith: Art? Taniguchi: Aye. Smith: Dwayne? Mukai: Aye. Smith: Chair votes aye, motion is carried unanimously. MAY 21, 2020 - LIQUOR ADJUDICATION BOARD MINUTES 13 The motion was carried unanimously. Smith: Ms. Schoen, please present your evidence regarding the violation. Schoen: Thank you, Mr. Chair. I'm deferring the... Gonzalez: Mr. Chair, if the Board accepts into evidence the exhibits offered by Ms. Schoen, Exhibits 1A through 1C(2), and Exhibit 2, you would have all the evidentiary grounds to proceed with the hearing without her having to ... she could summarize her evidence for you. Thank you. Smith: Do we need to vote on that, Brandon? Gonzalez: Yes, because they're exhibits. Technically, you must formally accept the exhibits as evidence. Smith: Can I have a motion from the Board to accept the exhibits as evidence? Pawasarat: I move that we accept the evidence as submitted. Taniguchi: Second. Ms. Pawasarat moved to accept the evidence (Exhibits) as submitted; seconded by Mr. Taniguchi. Smith: Andi made the motion, Art seconded that. Any discussion? There was no discussion from the Board Members. Smith: If not, we'll start with Andi. Andi, your vote? Pawasarat: Aye. Smith: Art? Taniguchi: Aye. Smith: Dwayne? Mukai: Aye. Smith: Chair votes aye. The motion is carried unanimously. The motion was carried unanimously. Smith: Ms. Schoen, please go on with your final summary statements. Schoen: Thank you, Mr. Chair. You will see that Exhibit 2 is the investigator's report from the 2020-004 case that was already received, and also the investigator's report in the current case. MAY 21, 2020 - LIQUOR ADJUDICATION BOARD MINUTES 14 Basically, those documents detail the facts. The Licensee was to pay percentage fees in the amount of $2,470.02 by November 15, 2019, but he did not. On October 1St, the Licensee was notified (to pay their percentage fee). On October 15th, the business was closed, and in-person contact was made with him on October 21St. That was our last contact with the Licensee. On October 22"d, we sent a notice of cancellation (of liquor license) to wholesalers, and on November 7th we made checks where the investigators went out and were informed by a neighbor that he had moved out, and moved to Australia. Smith: Thank you, Ms. Schoen. Can I have a motion from the Board to close the hearing? Taniguchi: So move. Smith: Thank you, Art. Is there a second? Mukai: Second. Mr. Taniguchi moved to close the public hearing; seconded by Mr. Mukai. Smith: Thank you, Dwayne. Any discussion? There was no discussion. Smith: If not, call for the question. Andi, how do you vote? Pawasarat: Aye. Smith: Art? Taniguchi: Aye. Smith: Dwayne? Mukai: Aye. Smith: Chair votes aye. Motion carried unanimously. The motion was carried unanimously. Smith: As part of our decision-making, we need motions to approve the Decision (to find the Licensee in violation of the charge), Findings of Fact, Conclusions of Law, and the Decision and Order. Can I have such a motion? Mukai: So move. Smith: Thank you, Dwayne. Is there a second? Taniguchi: Second. MAY 21, 2020 - LIQUOR ADJUDICATION BOARD MINUTES 15 Mr. Mukai moved to find the Licensee in violation of Rule 3-6(C) 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 its payment of percentage fees due for the license year by November 15, 2019; seconded by Mr. Taniguchi. Smith: Thank you, Art. Any discussion? There was no discussion from the Board Members. Smith: If not, let's call for the question. Andi, how do you vote? Pawasarat: Aye. Smith: Art? Taniguchi: Aye. Smith: Dwayne? Mukai: Aye. Smith: Chair votes aye. The motion is carried unanimously. The motion was carried unanimously. Smith: Next, I need a motion to adopt the Findings of Fact and Conclusions of Law. Do I have that motion? Mukai: So move. Smith: Thank you, Dwayne. Second? Taniguchi: Second. Mr. Mukai moved to adopt the Findings of Fact and Conclusions of Law; seconded by Mr. Taniguchi. Smith: Thank you, Art. If there is no discussion, call for the question. Andi, how do you vote? Pawasarat: Aye. Smith: Art? Taniguchi: Aye. MAY 21, 2020 - LIQUOR ADJUDICATION BOARD MINUTES 16 Smith: Dwayne? Mukai: Aye. Smith: Chair votes aye. The motion is carried unanimously. The motion was carried unanimously. Smith: Ms. Schoen, please provide the Department's recommendation for penalty in this case. Schoen: Thank you, Mr. Chair. The Department's recommendation is the same as in the other case, a $2,000 fine to be paid within thirty (30) days upon issuance of the Decision and Order, made payable to the Department of Liquor Control. Smith: Thank you. Do I have a motion? Mukai: I move to accept the recommendation of the Department. Smith: Second? Taniguchi: Second. Mr. Mukai moved that the Licensee in Case No. 2020-007, be assessed a penalty in the amount of $2,000 to be paid within thirty (30) days upon issuance of the Decision and Order for said violation, payable to the Department of Liquor Control; seconded by Mr. Taniguchi. Smith: Thank you. Renee, I just have one question. We have not been able to locate this guy; so, when we make these decisions and impose these penalties, the only consequences if he were to come back in some future time to the County of Hawai'i and apply for a license, (would be that) we'd be able to consider this situation? Schoen: Yes. Smith: Thank you. Let's call for the question. Andi, how do you vote? Pawasarat: Aye. Smith: Art? Taniguchi: Aye. Smith: Dwayne? Mukai: Aye. MAY 21, 2020 - LIQUOR ADJUDICATION BOARD MINUTES 17 Smith: Chair votes aye. The motion is carried unanimously. The motion was carried unanimously. Smith: A written Decision and Order shall be provided together with the Findings of Fact and the Conclusions of Law. A written Decision and Order will be prepared and served upon the Licensee, which shall be due and payable within thirty (30) days of its issuance. V. New Business Smith: Moving on to Item V. New Business. Gerald, you were going to update us and provide some information on the actions that the Department has taken? Takase: Yes, Dorsi provided you with the updates that we've been providing to the Liquor Commission. Since this is our first meeting, I wanted to give you a chance to see what we're doing or make any comments. We're moving out of the "shut -down" andthings are starting to happen again, but some of the critical actions that we took during the shut -down was to allow our Licensees, restaurants as well as dispensers to do take-out wines, beers, and recently, mixed drink cocktails along with their to -go foods. This was instrumental for them in trying to keep their businesses going. We did the to -go beer and wine early on, before the rest of the counties and we're dragging everybody along with us whether they wanted to or not. Mixed cocktails were asked for by a lot of Licensees. We have also allowed that. The reason they wanted that is they feel there is a higher margin to it. Takase: In terms of other things we are doing is, we've allowed distillers to start producing disinfectants, hand sanitizers. They had a lot of alcohol on hand and their demand was down, so they asked to convert. We allowed them to convert. You might have seen that Maui had a problem with their distillers, and it made the local news as well as national news for citing them during this period. I'll report that we didn't have any publicity like that, but, we also did allow them to go in. They both provided sanitizers to the County and we have since tried to give them some business. The Department purchased another $5,000 from both Big Island Distillers and Kuleana Rum combined, to supplement the County's supply. In our next phase as we open up, which tentatively is scheduled to be June 1St, the Department is going to purchase more hand sanitizers and provide at least some to all of the Licensees, because they will all be required to have hand sanitizing stations as part of their reopening. Takase: Some of the other things we did was to allow drive-through services by our retail Licensees. It seems to be working pretty well. It may be one of the things that we adopt in the future. Another thing that will come up is, we received approval from the Liquor Commission to suspend collection of the renewal fees until November of this year when we do our percentage fees. We're giving them about six months to make those payments. We have started to receive some renewals, some are suspending their fees, and others are still continuing to pay. We estimate that we should be able to survive without collecting these fees up front. As they ramp up to get ready to reopen, I'm sure we'll get lots of questions as to what will be allowed. As far as we know right now, restaurants will be allowed to open come June 1St, with social distancing guidelines. If you read the Governor's and Mayor's orders, bars are not allowed to open; but, we are treating all of our bars that serve food as restaurants for reopening purposes. MAY 21, 2020 - LIQUOR ADJUDICATION BOARD MINUTES 18 Smith: Thank you, Gerald. Do any of the Board Members have any comments or questions of Gerald? Mukai: (About) mixed drinks, was this for all the Licensees, or just for those that specifically ask for the variance? Takase: No. We sent out a memo, either late last week or early this week, to make it clear that all of them have that option. Mukai: Thank you. Taniguchi: Gerald, did the Mayor actually come out with that announcement? I haven't seen anything locally, from our Mayor, only the Governor's (order). Takase: No. I believe the protocol right now is that the Mayor has to go to the Governor. It's not official at this time. Smith: Art, anything else? There was nothing further from Mr. Taniguchi. Smith: Andi, you have anything? Pawasarat: I just wanted to know a little more on the last item on the report about the beer trucks or van. Takase: That was a matter for the Commission. We had a request by Ola Brew and someone else to start beer trucks. Apparently, they're starting to gain popularity on the mainland, but the Commission deferred any action on that matter. It won't be happening anytime soon, let's put it that way. Pawasarat: Beer trucks for actual consumption, or just beer trucks for delivery at home? Takase: I believe the requests were for actual consumption. They've likened them to the old ice cream trucks that used to go around the neighborhoods. Smith: Anything else, Andi? Pawasarat: No, thank you. Smith: Thank you. Gerald, I have a couple of questions and comments. As typical, I always appreciate the Department looking out and trying to promote business, and help our economy. I think that's awesome. Brandon had explained to me that we were the first county that started some of these things, (like) allowing alcoholic beverages to go out the door. I think that's awesome. One of the questions I have, I know on the report there's a number of distillers that are providing sanitizers, I think it would be good, if it was their decision, to promote that. MAY 21, 2020 - LIQUOR ADJUDICATION BOARD MINUTES 19 Aside from seeing the report, I haven't seen anything about Kuleana Rum or anyone else promoting the positive things they're doing for the community, or that the Liquor Department is purchasing it to distribute to the Licensees. I think that's all really good stuff that you should promote. Takase: We left the promotion part up to Civil Defense and the distillers themselves. I know that Kuleana has started to advertise on the web, and I think Big Island Distillers is trying to figure that part out. But, Kuleana also had an article in the West Hawai'i Today about providing it. There is something going on. As a Department, I'd be kind of loath to try and single out our Licensees. But, if there are a couple of others that are thinking about it, maybe, as things wind down, or we go out with providing the products, we'll take a more active role in that. I have asked them to put their logos on their bottles and things that they're providing us with, which they are, so at least people will know where it came from. That was more to help them get refills from these Licensees, because I don't think one bottle is going to last them too long. Smith: Thank you, Gerald. Another question, on the mixed cocktails, you can go to a bar and they'll give you a cocktail and a cup with a lid on it? Takase: Yes, Brandon will show you the types of lids that are okay. Right now, the most effective one is the seal that goes around the rim of it (the container). I think they use a blow dryer to shrink wrap it on. There is also his favorite, the boba tea cover, which seals on the top and can't be removed very easily. Those are the two that are being promoted and acceptable to the industry, as well. We're telling them that just putting it in a cup and putting a regular lid on the container is not acceptable. It needs to be a little more permanent. It's really to help their customers, as well, because they may still be subject to open vessel liquor laws. We're telling them (the Licensee) to buy a good seal and instruct them (their customers) not to put it on the seat next to them, and that should be okay. Smith: Okay, good, appreciate it, Gerald. One other question, on the drive-through. I know some of my staff have young children and what they're getting used to doing is going to Target and on-line order, and Target brings the product out to your car. Especially if they have small children in the car, and it's easier. With the drive-through, you can also order alcohol and they'll bring it out to your car? Takase: Yes. We're still requiring them to ID them. One Licensee asked me, and I'm relaxing the rules on that. It used to be that if you had a minor with you, they wouldn't sell you the product. Specifically, those are the kind of cases where the parent is with all the children, they can't come in and buy it themselves without leaving the children in the car. I've told the Licensee that we'll relax the rules in those cases. It's still incumbent upon the Licensee to be sure there's proper ID, because it's still just a bunch of kids with one adult. They can still go ahead and sell in those cases. The big mainland chains are doing it, and we want to offer it to our mom and pop Licensees as well. It's actually a rule right now, but we will probably be revising it... Mukai: I have a question. Smith: Go ahead, Dwayne. MAY 21, 2020 -LIQUOR ADJUDICATION BOARD MINUTES 20 Mukai: Mr. Chair, on this take-out rule for alcoholic beverages, how long do you anticipate it being in effect? Do you see it continuing even after the pandemic is over? Takase: It will continue until everything gets back to normal. That's actually something we will speak with the Commission about. It may be something that will be allowed, but we may need to get more feedback. It wasn't allowed previously, ...would separate bars and retailers. I don't know that we'll see a lot of crossover in the ... the retailers from the bars. As I tell Brandon, I can't anticipate somebody buying that much liquor from a bar at those prices. At some point, they'll just say they'll go to KTA or Longs and buy a twelve -pack rather than try to buy it from a bar. It may be something that we will continue to allow. Hopefully, we will begin to meet with our Licensees about our rule changes. That will be one of the questions we'll be asking, and if there's a lot of protest from the retail side, we probably won't adopt this. Pawasarat: What I've noticed in the area that I live in, is the "to go" alcohol. What's been happening is there's been outside parking areas where, after they go to the restaurant, purchase the beer at the establishment, and sit in their vehicles or in the parking lot with beach chairs and all kinds of stuff. Everybody goes back and forth and gets their alcohol and sits in the parking lot and hangs out, just like it used to be, only outside now. Takase: That might be the new normal for a while; but, places should be open June 1St, so they can start to move back inside. Pawasarat: So, will they not be allowed to have "to go" when it reopens? Takase: We're going to keep the "to go" until they're fully reopened. Pawasarat: Because they're not going to be able to control the "within the premises..." Takase: Yes, as long as they're offering "to go" meals, we will allow them to offer "to go" alcohol. Pawasarat: It would be difficult to monitor people who are drinking inside that walk outside, then come back inside than are patrons of eating in. Takase: I think it'll be more like, if you buy your drinks from inside, then you still have to follow the same rules that we have now. If you buy "to go" liquor with your "to go" food and you leave the premises, we will still allow that for the foreseeable future. Smith: Thank you, Gerald. Andi, is there anything else? Pawasarat: No, thank you. Smith: Gerald, I have a question. When you talked about the Licensees' fees, you mentioned that they're going to be deferred until November, but not waived, right? Takase: Yes. I anticipate collecting from them. I said "deferred" because, when we come up on our renewal period, which July 1St starts our new license year, we require all the MAY 21, 2020 - LIQUOR ADJUDICATION BOARD MINUTES 21 Licensees to pay. The fees range anywhere from $300 up to $1200, depending on the class of the license. We didn't wish to "whammy" them when they're just starting to come back. We looked at our budget, and I have a sufficient cushion that I can carry our operations until later in the year. I wanted to defer it if it's not a lot. I think for many of our Licensees, every bit helps. If it's a matter of them saying they will renew or not renew because they can't make the payment now, so they decide not to renew, I'd rather have them renew. It's a way to get them operating, but giving them some opportunity to get back and going before we start imposing fees on them. Smith: Thank you, Gerald. I think that's reasonable. Just as in my business, we also were considering rent deferrals for some of our tenants that are struggling. I think it's common business practice to make those kinds of accommodations. Thank you. Anybody else have any other comments for Gerald? There were no other comments from the Board Members. Smith: Gerald, do you have anything else to add? Takase: No, that's it. Smith: Okay, thanks. The next item on our agenda is for adjournment. Does anybody have any comments on anything; otherwise, we'll take a motion to adjourn? There were no comments from the Board Members. Mukai: Move to adjourn. Smith: Thank you, Dwayne. Second? Taniguchi: Second. Mr. Mukai moved to adjourn; seconded by Mr. Taniguchi. Smith: Thank you. Moved and seconded to adjourn. Andi, are you good with that? Pawasarat: Yes. Smith: Thank you. Art, your vote? Taniguchi: Aye. Smith: Dwayne? Mukai: Aye. Smith: Chair votes yes. Motion is unanimously carried. Meeting is adjourned. MAY 21, 2020 - LIQUOR ADJUDICATION BOARD MINUTES 22 The motion was carried unanimously. The meeting was adjourned at 10:59 A.M. era d Takase Director The May 21, 2020, Liquor Adjudication Board minutes were approved as circulated via email/mail on November 25, 2020, by the Liquor Adjudication Board of the County of Hawaii on December 3, 2020. MAY 21, 2020 - LIQUOR ADJUDICATION BOARD MINUTES 23