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HomeMy WebLinkAbout2024-05-16 Liquor Adjudication Board Minutes HiloCOUNTY OF HAWAI`I DEPARTMENT OF LIQUOR CONTROL LIQUOR ADJUDICATION BOARD MINUTES — MAY 169 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 Sidney Fuke at 10:30 A.M., in the Department of Liquor Control, Hilo Meeting Room, Hilo Lagoon Centre, 101 Aupuni Street, Unit 230, Hilo, Hawaii. The following were present and constituted a quorum: Board Members: Sidney Fuke, Chair Ceci Davenport, Board Member Michael Hughes, Board Member Dawn Raymond, Board Member Absent and Excused: Howard Kelly, Vice Chair Others Present: Gerald Takase, Director Brandon Gonzalez, Administrative Officer Dakota `Cody' Frenz, Deputy Corporation Counsel (Department/Prosecutor) Diana Mellon -Lacey, Deputy Corporation Counsel (Board) Hau`oli Sayles, Board Secretary Fuke: I'd like to welcome you all, as a reminder could you please silence your cell phone and other instruments that could disrupt the meeting. The meeting is being recorded, so please speak loudly and clearly. Now, I'd like to introduce the Members and staff, but first of all, welcoming our new Board Member, Ceci Davenport. And traditionally we all introduce ourselves, so can I start with you then, first? Davenport: Yes, absolutely, Ceci Davenport from Waimea, happy to be here. Raymond: Dawn Raymond, Board Member. Mellon -Lacey: Deputy Corporation Counsel Diana Mellon -Lacey. Hughes: Mike Hughes. Fuke: And, we have the Liquor Department staff, starting with its Director. Takase: Gerald Takase, Director, Hau`oli Sayles is our Board Secretary, Cody Frenz is our Deputy Corporation Counsel, and Brandon Gonzalez is our Administrative Officer. Hawaii County is an Equal Opportunity Provider and Employer II. Approval of Minutes —December 21, 2023 (10:31 AM) Fuke: We have the minutes of December 21, 2023, as circulated via email, may I have a motion to approve the minutes as circulated? Raymond: So moved. Hughes: Second. Board Member Raymond moved to approve the December 21, 2023, meeting minutes as circulated; Seconded by Board Member Hughes. Fuke: Any discussion on it? There was no discussion by Board Members. Fuke: If not, all those in favor please say "Aye." The Board Members voted "Aye." Fuke: Opposed, "Nay." There was no opposition by Board Members. Fuke: It's carried, thank you very much. The motion was carried unanimously. III. Hearings (10:31 AM) 1. CASE NO. 2024-001 (10:31 AM) In the Matter of the Accusation Against Pashmina's & Gift Inc., dba Kamana Indian Cuisine #2 (Hilo), located at 1235 Kilauea Avenue, Suite 180, Hilo, Hawaii. Informal Hearing (Alternative II) on violation of Rule 5-2 of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii, for failure to have a person duly approved by the Department of Liquor Control as a Person In Active Charge of the premises at all times while the premises was open for business to provide supervision in the exercise of the liquor license in accordance with the liquor laws. REPRESENTING LICENSEE: Tirtha Luitel, President did not attend. Fuke: We know that the President, Tirtha Luitel, who represents the Licensee, is not able to attend. So, can we have the presentation, Ms. Frenz? MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, MAY 16, 2024 - HILO PAGE 2 OF 20 Frenz: Sure. The Complaint and Accusation states that on or about November 13t", November 15t" through November 20t", and November 22nd to the 24t", 2023, in the County and State of Hawaii, the Licensee, Pashmina's & Gift Inc., dba Kamana Indian Cuisine #2 (Hilo), failed to have a person duly approved by the Department of Liquor Control as a Person In Active Charge of the premises at all times while the premises was open for business to provide supervision in the exercise of the liquor license in accordance with the liquor laws, in violation of Rule 5-2 of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii. Fuke: May I have a motion to find the Licensee in violation of the charge? Raymond: So moved. Hughes: Second. Board Member Raymond moved to find the Licensee in Case No. 2024-001 in violation of Rule 5-2 of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii, for failure to have a person duly approved by the Department of Liquor Control as a Person In Active Charge of the premises at all times while the premises was open for business to provide supervision in the exercise of the liquor license in accordance with the liquor laws; Seconded by Board Member Hughes. Fuke: Any discussion among the Board Members? There was no discussion from Board Members. Fuke: If not, all those in favor please say "Aye." The Board Members voted "Aye." Fuke: Opposed, "Nay." There was no opposition by Board Members. Fuke: The motion is carried unanimously. The motion was carried unanimously Fuke: Do any of the Board Members have any discussions or questions regarding Ms. Frenz? There was no discussion from Board Members. Fuke: Okay, Ms. Frenz, could you please provide the Department's recommendation for the penalty in this case. Frenz: Yes, Chair. Some background information for this Board, this Licensee has no priors of the same offense within the past five years, they do have a prior from 2015, however the MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, MAY 16, 2024 - HILO PAGE 3 OF 20 Director finds some mitigating circumstances and is alternatively seeking a letter of reprimand. I'll leave that to Mr. Gonzalez and Mr. Takase to shed some additional insight. Fuke: So, if I understand correctly then, there would be like a fine or just a letter of reprimand? Takase: Just a letter of reprimand, yes. In this case, the requirement is that there be a manager on duty at all times. They're having problems I guess manning all their places, so they're short-staffed, but they knew they couldn't sell and they weren't selling and our investigation kind of beared that out. So really the only thing that they could have done that they didn't do was put up a sign saying they're not selling liquor during that time but they were refusing sales. So, that's why usually we fine them but in this case I think they did almost all the steps to not be in violation and therefore we're just going to issue a letter of reprimand to remind them. Fuke: Do any of the Board Members have questions of the Director or Ms. Frenz? Hughes: So, Gerald, has there been follow-up with this establishment to make sure they're compliant? Takase: Yes, so right after the investigation the first time, they did put up signs. Gonzalez: They also sent two more employees to get their cards so they have more coverage. Takase: Everybody is having trouble with staffing, so they're trying to keep on top of it but they understand what they got to do. Hughes: Thank you. Fuke: Any other questions or comments? There was no discussion from Board Members. Fuke: So, in other words, if they had that sign up, then there wouldn't be any infraction. Takase: Yes. Gonzalez: We have licensees also notify the Department and call us and say, "By the way, we won't have a cardholder on duty tonight, just letting you guys know," as a further courtesy, but the sign is the best thing too, to notify the public. Fuke: So, they do have the sign up? Gonzalez: Yes. Fuke: Okay, could I have a motion on the penalty, the penalty being a letter of reprimand? Raymond: So moved. Hughes: Second. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, MAY 16, 2024 - HILO PAGE 4 OF 20 Board Member Raymond moved to accept the recommendation by the Department for penalty in Case No. 2024-001, that a letter of reprimand will be sent to the Licensee; Seconded by Board Member Hughes. Fuke: Any discussion? There was no discussion from Board Members. Fuke: If not, all those in favor please say "Aye." The Board Members voted "Aye." Fuke: Opposed, "Nay." There was no opposition by Board Members. Fuke: The motion is unanimously carried. The motion was carried unanimously Fuke: The Decision and Order will be served, and the letter of reprimand will be going out very shortly. 2. CASE NO. 2024-002 —CONTINUED BY REQUEST OF LICENSEE (10:37 AM) In the Matter of the Accusation Against Troon Beverages, Inc., dba Volcano Golf Course, located at 99-1621 Pi'i Mauna Drive, Volcano, Hawaii. Informal Hearing (Alternative II) on violation of Rule 5-2 of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii, for failure to have a person duly approved by the Department of Liquor Control as a Person In Active Charge of the premises at all times while the premises was open for business to provide supervision in the exercise of the liquor license in accordance with the liquor laws. Fuke: In this situation here, the licensee had requested a continuance to the next meeting. So, could I have a motion to continue this matter to the next meeting? Raymond: So moved. Hughes: Second. Board Member Raymond moved to continue Case No. 2024-002 to the next meeting at the request of the Licensee; Seconded by Board Member Hughes. Fuke: Any discussion? MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, MAY 16, 2024 - HILO PAGE 5 OF 20 There was no discussion from Board Members. Fuke: If not, all those in favor please say "Aye." The Board Members voted "Aye." Fuke: Opposed, "Nay." There was no opposition by Board Members. Fuke: The motion is unanimously carried. The motion was carried unanimously Fuke: The matter is now continued to the next meeting. 3. CASE NO. 2024-003 —CONTINUED BY REQUEST OF LICENSEE (10:38 AM) In the Matter of the Accusation Against Kalikala Cuisine Inc., dba Kalikala Cuisine, located at the Kona Banyan Court, 75-5695 Ali`i Drive, Kailua-Kona, Hawaii. Informal Hearing (Alternative II) on violation of Rule 5-4(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 an employee on duty consuming liquor. Fuke: And likewise, the licensee had requested a continuance to the next meeting. Could have a motion to continue this to the next meeting? Hughes: So moved. Raymond: Second. Board Member Hughes moved to continue Case No. 2024-003 to the next meeting at the request of the Licensee; Seconded By Board Member Raymond. Fuke: Any discussion among the Board Members? There was no discussion from Board Members. Fuke: I just have one question, was there a reason given? Takase: Yes, Mr. Bates had called us after he got notice of the hearing and he works during breakfast and lunch times and he says sometimes it's just him. So he's asking for a Kona date, it's easier for him to get here rather than close down. Fuke: Thank you. Okay, we have a motion to continue this matter to the next meeting, all those in favor please say "Aye." MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, MAY 16, 2024 - HILO PAGE 6 OF 20 The Board Members voted "Aye." Fuke: Opposed, "Nay." There was no opposition by Board Members. Fuke: The motion is unanimously carried. The motion was carried unanimously Fuke: So the matter will be continued to the next meeting. 4. CASE NO. 2024-004 (10:39 AM) In the Matter of the Accusation Against Big Dreams Foundation, dba Big Dreams Foundation, located at 74-5617 Pawai Place, Kailua-Kona, Hawaii. Informal Hearing (Alternative II) on violation of Section 281-78(b)(1)(A) of the Hawaii Revised Statutes, as amended, that the Licensee did sell, serve, or furnish liquor to, or allow the consumption of liquor by a minor (age 20). ATTENDED IN PERSON REPRESENTING LICENSEE: Jaclyn Moore, President Fuke: We noticed that today, Ms. Moore and Mr. Shropshire will be here? Moore: It's just myself, my partner Dylan, who's the Secretary of the foundation is actually getting married today, so he's not here today. So, I'm here on behalf of the foundation, thank you. Fuke: Congratulations to him. Okay, again, could you state your name and your relationship to the business, although you already have. Moore: Absolutely, thank you so much for your time this morning, my name is Jaclyn Moore, I'm President of the non-profit foundation, Big Dreams Foundation. I'm here on behalf to speak to the violation that we have received. Fuke: Thank you very much. Ms. Frenz, could you please read the Complaint and Accusation, and the Answer to the Complaint. Frenz: Yes, Chair. The Complaint and Accusation alleges that on or about the 24th day of February 2024, in the County and State of Hawaii, the Licensee, Big Dreams Foundation, dba Big Dreams Foundation, did sell, serve, or furnish liquor to, or allow the consumption of liquor by a minor (age 20) in this case, in violation of Section 281-78(b)(1)(A) of the Hawaii Revised Statutes, as amended. Fuke: May I please have a motion to find the Licensee in violation of the charge? Hughes: So moved. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, MAY 16, 2024 - HILO PAGE 7 OF 20 Raymond: Second. Board Member Hughes moved to find the Licensee in Case No. 2024-004 in violation of Section 281-78(b)(1)(A) of the Hawaii Revised Statutes, as amended, that the Licensee did sell, serve, or furnish liquor to, or allow the consumption of liquor by a minor (age 20); Seconded by Board Member Raymond. Fuke: Any discussion among the Board Members on the charge? There was no discussion from Board Members. Fuke: If not, all those in favor please say "Aye." The Board Members voted "Aye." Fuke: Opposed say "Nay." There was no opposition by Board Members. Fuke: Okay, motion is unanimously carried. The motion was carried unanimously Fuke: Prior to assessing the penalty, do you want to say anything regarding the circumstances surrounding the violation. Moore: Sure, acknowledging that it did occur, just so everyone knows, we did our very best to align with the best in the business, so what do I mean by that? Both from a production standpoint, we aligned with AMP Productions, they're responsible for throwing and have thrown productions in the State, and focused really on other islands, world class musical talent coming to the State. So, we partnered with them, in addition to that, they have been working for many years with Rein Security, that's an outfit out of `O`ahu, they work really hand -in -hand, and honestly the best in the business also. We did our very best to align with people best in class to make sure that we did have a very clean event. It's unfortunate, because obviously it's unacceptable, and I totally acknowledge that. On this particular day, somehow this 20-year -old individual got through security, and actually was in the 21 and over section, and they were thankfully denied service by the blue card holder. We also worked with Willie's Hot Chicken, who are very familiar and do these types of events, and have done it successfully over the years. So, they were denied access directly from the blue card holder, but somehow maneuvered and were able to acquire through their friends. Looking back in hindsight, I wish it was in some way it could have been flagged so that we could have immediately escorted them out of the 21-and-over section even for trying to do that. I can't speak to why that didn't happen, unfortunately, but I do know that the outcome is the outcome the intent is intent but we did try to align ourselves with the best to actually have this not happen. And so, that's all can really speak to it, thank you. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, MAY 16, 2024 - HILO PAGE 8 OF 20 Frenz: And, I apologize, Chair, I failed to indicate that this is an informal hearing, the Licensee has selected Alternative II, admitting to the allegation, waiving it's right to a formal hearing and requesting the informal hearing to present the facts and circumstances surrounding the violation as Ms. Moore has just done. Fuke: Thanks for the clarification. Gonzalez: Mr. Chair? Fuke: Mr. Gonzalez? Gonzalez: I had the opportunity to speak to Ms. Moore. There was one more item that she wanted to clarify on the record. Within the investigator's report, page 4 of 13, Ms. Moore was listed as President and CEO (Chief Executive Officer) of Big Island Grown in the report. She wanted to make it clear that this special license was issued to Big Dreams Foundation, and she signed the acknowledgement and receipt of the Notice of Violation on behalf of Big Dreams Foundation, and not the Big Island Grown entity. So, we'd like the record to reflect that change, we can't change the report, but we would like the minutes to reflect that we acknowledge that correction. Fuke: Thanks for the clarification. Any questions from the Board Members of Ms. Moore? Davenport: Since February, when this event took place, have you had any other events since then? Moore: No, and quite honestly I just have to say Steve Frendo and Stefan, they're very communicative and were during that time, so after the fact, I understood that it happened, going through the steps of trying to be so careful doing it caused me to pause and just rethink how we move forward trying to generate funding for our non-profit, and thinking that the risk attached to it, as best as you can plan may not be worth the potential risk there, so we have not, and I don't know that we are going to. Please understand that it is still very much our intent to try to align and bring creative talent to Big Island. And when I was bringing up AMP Productions, it was the first time we had an act like Brett Young, we did a successful and very clean event. And then subsequently, we focused on Iration who's a local Big Island favorite that were coming home to do an event, so we still want to do that but maybe rethinking the course of pulling the liquor license, so we have not. Fuke: Any further questions from the Board Members of Ms. Moore? There was no further discussion from Board Members. Fuke: I just have a question, I don't know who to direct this to, but in reading the background report, it says, "It failed to prevent a minor from entering, obtaining, and consuming liquor." can understand obtaining and consuming liquor, but the question is really maybe directed to the staff, you know you can have like restaurants that serve and you have minors entering, so is the violation entering? Takase: This was a concert situation, so when we have a concert for 21-and-over and also minors, we kind of help them to try and divide their area. So, the side where drinking is on should be 21-and-over, and then the rest of them can be on the other side, so we kind of split it MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, MAY 16, 2024 - HILO PAGE 9 OF 20 right down the middle. That was kind of the problem, somehow this person got into that 21- and-over side, they went up to get a drink, they didn't have a band so their staff correctly identified him and I guess the only other step is they should have escorted him out of that area because he turned around and starts to walk away, his friends just buys the drink and gives it to him, so that was the problem. Fuke: So, how did you cone it off, do you like have a roped area? Gonzalez: Sorry, this wasn't in the report, it should have been, but Ms. Moore already, she's okay with it being presented to you folks. So, it's easier to describe and you can see it, there's a physical barrier, it's a railing, and there's at least five feet of separation between the railings so that you can't pass drinks over the railing that separates half of the venue between Willie's Hot Chicken and Umeke's, that old parking lot, split it right down the middle in half. Half is 21- and-over only where for alcohol consumption, and the other is all ages. So, it's a separate entrance controlled and we keep them segregated that way. Fuke: So, if you have a parent bring an under -aged child, and the parent has purchased an alcohol beverage, they can't stay Takase: They would have to stay in the 21-and-over section. Moore: Couple things, understanding now that assuming responsibility for it, so in no way this is for contextual purposes and not to make excuses for anything, but there are a couple different things that were happening. First thing is I personally attended the security briefing in the beginning of that. Rein Security is very, very professional in this way, they had the huddle, went through the major points and focus was on preventing underage drinking and making sure that everyone was being ID'd (identified) appropriately. The only other thing that I can say that was an added complexity maybe to the footprint of this, is that during this time also, and I'm not saying this, I don't know I'm just explaining but Willie's Chicken also had a situation where they were able to have people on the side of where we were in that parking lot, normal patrons, so at one point I could see that maybe that was a little bit more difficult to bifurcate who were patrons of the restaurant who could be there, but also people that were coming through, like the front gate to access it. So, just an added complexity, I don't know how they got through to be honest with you, but I'm assuming, I don't want to make assumptions but for the sake of the violation, I'm just assuming they made it through the front gate, but I don't know. Fuke: Any follow up questions? There was no further discussion from Board Members. Fuke: This question is more for the staff, is this like a special event license, right? Gonzalez: Yes. Fuke: And so, when you have like a special event license, then you don't treat it in the same way like other liquor dispensing eateries, like a restaurant? Gonzalez: So the applicant for the special license in this case, you guys are projected over a thousand people? MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, MAY 16, 2024 - HILO PAGE 10 OF 20 Moore: Correct. Gonzalez: We're not going to treat that like a restaurant, it's a concert. Several weeks earlier, the weekend of February 2nd, they had another concert, they had huge numbers. Some of the feedback from that was, there were so many people in the drinking area that security actually couldn't roam and make sure there wasn't underage drinking. And you know there wasn't but there were people sneaking in alcohol into the all -ages side, is what were some of the reports. So, Ms. Moore and her team, we take into account each event, so we try as best as we can to align it with our established restaurant or bar venue, but it's a little different. Fuke: This is hypothetical, like the Palace Theater, let's assume they have a concert and then they want to sell alcohol, you're going to have all ages. How do you separate that because that's going to be a special event? Takase: The Palace Theater will set off a section in the middle or middle back, one of those areas and so drinking is allowed in those sections, same like we do with baseball, in the grand stand, we'll set off certain areas where drinking is allowed. In those places a lot of times it's a little easier because they're all seated, so you know they can kind of keep watch of them. At a concert it's hard because everybody is moving around, this venue, Kona Brewer's Block, it's kind of a small venue, so it can get very crowed fast. So, I've been trying to convince all of the concert guys to go up to K-Mart but we'll see how that goes because you know, they have problems because they have other businesses there that are open, they can't fully block them off, so it's not ideal. Fuke: Okay, so this is another hypothetical then, say you go to a baseball game, and you know they serve alcohol. You know, you have a mixture or so, is there any control? We don't have that kind of stadium here, but I'm just thinking out loud. Takase: No, not really. So, like Kona Brew has it, they can go and buy the drinks, they're only allowed to get two at the most, but they will assign ushers basically looking up at the crowd the whole time and try to monitor them that way. Fuke: But, in that situation they'll allow like a Takase: Yes, so we'll work with them and try to cater it to meet our concerns but also to allow them to run the event. And for concerts, this is going to be the most feasible plan, was to just kind of split the crowd, and it worked there and King Kam (Kamehameha) too. So, it kind of provides both sides with an opportunity to get up close to the stage area. Fuke: So, Ms. Moore, in your situation, have you had any pushback from the customers? Moore: To be honest with you, we're fairly new to this process, and so you know, this was the third event that we tried to like have musical acts because of the intent of the foundation and what we're trying to focus on, it's important to us to highlight local artists as well as farmers and other musician, so that was craft makers, so that was kind of the spirit of what we were trying to do. The event before, truth be told, I think it had everything to do with like the parking lot also. So, the one before with Brett Young where we had so many folks, it was the circular parking lot where Kona Brew was, and it was really tight. And so, the other parking lot, now retrospect obviously in hindsight you can see a lot of the issues but the surface area I'll call it, or the external perimeter is just a lot longer and not as secure in some ways. And, we MINUTES — LIQUOR ADJUDICATION BOARD MEETING — THURSDAY, MAY 16, 2024 — HILO PAGE 11 OF 20 definitely had security presence along that perimeter, understanding that it was a vulnerability but now understanding from a planning perspective, to Director's point he did bring that up about just the vulnerabilities with that area in general. But if we were going to do it again, I'd probably go back to that circular parking lot because of the level of control, it was like a singular access point that was hard to breach because of the fall off on the other side of that parking lot. But yeah, I think the open businesses there when they are open adds a certain level of complexity because you don't want to deter their business either, so it's kind of a give and take imbalance, but it definitely adds to that layer of complexity. But we haven't had any pushback from bifurcating the 21 to under 21. 1 mean, I know it was a bummer but these are things that it just seems like it was the best way of trying to ensure that we had those two groups separated for just visual eyes on it and knowing. I hope I answered your question. Fuke: Any more questions? There was no further discussion from Board Members. Fuke: Okay, Ms. Frenz, could you please provide the Department's recommendation. Frenz: Yes, Chair. At this time, this particular licensee has no prior violations, this was a special license, but no prior violations, there was a prior warning. I think that Ms. Moore has already thoughtfully and conscientiously described how hindsight is 20/20, and within a beer garden sort of speak, there's always going to be the one underage friend that's trying to sneak in with their friends and like any theft, if there's a will there's a way, and I think it just brings to light that no good deed goes unpunished. But, I and the Department appreciates how conscientious this licensee is, all her statements here today are further indicative of that, so we are seeking the standard fine that has been imposed on other licensees with similar violations, it's a $2,000.00 fine, with $1,000.00 suspended for one year from the date of the service of the Decision and Order in this case, on the condition that there will be no similar law violations that's specific to Hawaii Revised Statutes, Section 281-78, that the $1,000.00 unsuspended portion of that fine would be paid within 30 days of receipt of the Decision in Order in this case, payable to the Department of Liquor Control. They did also waive their right to a formal hearing, select Alternative 11, admitting to the violation but wanted to explain circumstances, ask that you follow that recommendation. Fuke: Thank you very much. Is there any questions of Ms. Frenz? There was no further discussion from Board Members. Fuke: Could I have a motion on the penalty? The penalty again, if I understand correctly just to summarize, it's $2,000.00, with a $1,000.00 suspension, provided that there is no similar violation within a year? Frenz: Yes, Chair. Fuke: So, that's the recommended penalty. So, could I have a motion to impose the penalty? Raymond: So moved. Hughes: Second. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, MAY 16, 2024 - HILO PAGE 12 OF 20 Board Member Raymond moved to accept the recommendation by the Department for penalty in Case No. 2024-004, that the Licensee is assessed a penalty in the sum of TWO THOUSAND AND NO/100 DOLLARS ($2,000.00), with ONE THOUSAND AND NO/100 DOLLARS ($1,000.00) to be suspended for 12 months from the date of service of this Decision and Order, on the condition that there are no similar violations of Section 281-78(b)(1)(A) of the Hawaii Revised Statutes, as amended, within that period and that ONE THOUSAND AND NO/100 DOLLARS ($1 000.00) is to be paid within 30 days upon receipt of this Decision and Order, payable to the Department of Liquor Control; Seconded by Board Member Hughes. Fuke: Any discussion on the proposed penalty? There was no discussion from Board Members. Fuke: If not, all those in favor please say "Aye." The Board Members voted "Aye." Fuke: Opposed say "Nay." There was no opposition by Board Members. Fuke: The motion was unanimously carried. The motion was carried unanimously Fuke: A Decision and Order will be served, and we request that the payment be made within 30 days of receipt. 5. CASE NO. 2024-005 (11:00 AM) In the Matter of the Accusation Against MNS, Ltd., dba ABC Store #75, located at the Coconut Grove Marketplace, 75-5817 Ali`i Drive, Suite F-15, Kailua-Kona, Hawaii. Informal Hearing (Alternative II) on violation of Section 281-78(b)(1)(A) of the Hawaii Revised Statutes, as amended, that the Licensee did sell, serve, or furnish liquor to a minor (age 20). ATTENDED IN PERSON REPRESENTING LICENSEE: Lovella Romualdo, Authorized Agent, and James Brown, Jr., Store Manager. Fuke: I'd like to now call upon the licensee and representative to please state your name and relationship to the business. Brown: James Brown, I'm the Store Manager at ABC Store #75 at the Coconut Grove Marketplace. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, MAY 16, 2024 - HILO PAGE 13 OF 20 Romualdo: Lovella Romualdo, Property Manager for ABC Stores. Fuke: Ms. Frenz, could you please read the Complaint and Accusation, and the Answer to the Complaint. Frenz: Yes, Chair. The Complaint and Accusation states that on or about the 15th day of April 2024, in the County and State of Hawaii, the Licensee, MNS, Ltd., dba ABC Store #75, did sell, serve, or furnish liquor to a minor (age 20), in violation of Section 281-78(b)(1)(A) of the Hawaii Revised Statutes, as amended. Chair, this is an Informal Hearing, the Licensee selected Alternative II, admitting to the allegation and waiving its right to a hearing and appeal but requests an informal hearing to present the circumstances surrounding the violation. Fuke: May I have a motion to find the Licensee in violation of the charge? Hughes: So moved. Raymond: Second. Board Member Hughes moved to find the Licensee in Case No. 2024-005 in violation of Section 281-78(b)(1)(A) of the Hawaii Revised Statutes, as amended, that the Licensee did sell, serve, or furnish liquor to a minor (age 20); Seconded by Board Member Raymond. Fuke: Any discussion on the motion? There was no discussion from Board Members. Fuke: If not, all those in favor please say "Aye." The Board Members voted "Aye." Fuke: Opposed say "Nay." There was no opposition by Board Members. Fuke: The motion was unanimously carried. The motion was carried unanimously Fuke: Prior to assessing the penalty, you may proceed with your presentation of the circumstances surrounding the violation or anything about the violation. Brown: The associate Chris, we took him off the schedule so we could do an investigation on our part, and what was found out was that, that minor that was coming into the store, he did have an ID (identification) prior, I'm not sure how long ago, he did show an ID (identification) too that had his picture and was scannable, so the reason why he didn't card him the second time is because of that first card that he carded him for prior. So, we also conducted retraining with Chris and my whole staff on checking ID (identification) on age restricted items. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, MAY 16, 2024 - HILO PAGE 14 OF 20 Fuke: Are there any questions of Mr. Brown? There was no discussion from Board Members. Takase: I have a question, Mr. Brown, do you folks have electronic scanning to determine whether those I D's (identifications) are good or not? Brown: We have a scanner that we scan through our register system that scan the code on the back of the ID's (identifications). Takase: That will tell you if it's a valid ID (identification)? Brown: Yes, if they're not, then it would flag as being underage. Fuke: So, you have that scanner now? Brown: Yes, all the registers have it, it's the regular scanner that we scan merchandise with, we scan the ID (identification) with that also. Gonzalez: So, for the scanning, is it just scanning the information on the card, or is it verifying if the ID (identification) is actually authentic? Brown: It's verifying that the ID is authentic and that they are of age. Gonzalez: Do you know the name of the software and the company that provides that to you folks? Brown: I'm not sure. Gonzalez: If we can get that information later. Romualdo: Yes, we can send it to you. Gonzalez: Thank you. Fuke: Any questions among the Board members on the violation? There was no further discussion from Board Members. Fuke: So, I have a couple of questions, so this person Barton, he's the minor, right? So, is he a tourist? Brown: He works across the street at Huggo's Restaurant. Fuke: So, when he first came in, then the employee at that time, Chris, so he had scanned his ID (identification) presumably? Brown: Yes. Fuke: And so, either the scanner was faulty, or maybe he didn't look carefully? MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, MAY 16, 2024 - HILO PAGE 15 OF 20 Brown: Yeah, I'm not sure what happened to that part. Gonzalez: No, the questions are excellent. I'd like to point out page 11 of 18 of the investigator's report. We actually have a copy of Mr. Barton's Hawaii drivers license, and it shows on the top that he turns 21 on October 4, 2024, so if they were to scan that ID (identification) it would have flagged it if it was working properly, so we don't know what ID (identification) was scanned, or if it was. Frenz: Assuming if it was even scanned. Takase: Plus, it's a vertical. Gonzalez: So, he's still underage. Takase: I guess the reason why I was asking is a lot of times they'll have fake ID's (identifications). Brown: Yeah, according to Chris, the ID (identification) that he scanned prior before he got caught was a mainland ID (identification), and he can't recall what State it was, he's thinking it was California or Seattle, he can't remember. Hughes: So, do those scanners work on driver's licenses from other states or countries? Brown: Yeah, they do. Takase: Yes, its supposed to, so a lot of times what happens is they'll get a hold of their friend's or their brother's ID (identification), and they'll use that, unless the clerk does a good job at checking them that it's actually the same person that's giving you the ID (identification). It'll scan through as a valid ID (identification). Davenport: So, who's scanning, the cashier or the patron? Brown: The cashier. Davenport: And there's say, like a printout or a screen there? Brown: The screen, it comes up on the screen. Davenport: And it brings up the person's ID (identification), and from there what does it say? They're of age or not? Brown: If it's of age, it would scan and it would ring through. If they're underage, it would flag and a window would pop up saying, "Underage", and the liquor wouldn't be able to scan. Fuke: So, it's almost like one of those TSA (Transportation Security Administration) type of check -ins? Brown: Yeah. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, MAY 16, 2024 - HILO PAGE 16 OF 20 Gonzalez: So, if I may ask, is part of the retraining having your cashiers check an ID (identification) for every transaction? Brown: Yes. Gonzalez: Thank you for clarifying that. Fuke: Okay, any more questions from the Board? Davenport: And so that ID (identification) is affiliated with that sale? Brown: Yes. So, when we have liquor and we card the minor, we would scan the liquor, the liquor wouldn't go through yet until you scan the ID (identification), and then if they're of age, and then the sale would go through. If they're underage, it wouldn't take the sale at all. Hughes: James, I have an unrelated question about ABC stores, you're a high -traffic store wide open to the front, your front entry is always wide open, how often do you have theft problems of alcohol especially with the small bottles of liquor that you have? Brown: Theft, I would say pretty much every day. Hughes: Really? Brown: But now is not too bad because we redid my store, so all the liquor came more towards the front where the registers are manned, so they have a little harder time to steal now. So, in order for them to steal it, they would have to take the merchandise and go to the back of the store to hide it, but it is a problem. Hughes: Just curious. Fuke: So, I understand you've taken some corrective action. Brown: Correct. Fuke: Not only necessarily with Chris, the one who did the sale, but all of the other employees too? Brown: Yes, the whole staff. Fuke: Okay, Ms. Frenz, could you please provide the Department's recommendation for penalty in this case. Frenz: Yes, Chair. As some additional background information, they don't have any prior violations of this nature within the last five years for this Board's consideration. They do have one from 2013, so it's been a good number of years since they had one. You've already asked and clarified that they've taken corrective actions to try and avoid this situation in the future, and as our Director has indicated or asked them about scanning every ID (identification) every time, every transaction to avoid this. You know, the prior one worked, and now it's a different ID (identification), whatever it may be, so they have taken steps to avoid this in the future. We're asking for similar to other prior violating licensees of the same or similar allegation, a MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, MAY 16, 2024 - HILO PAGE 17 OF 20 $2,000.00 fine, with $1,000.00 suspended for a period of one year from the date of service of the Decision and Order, again on the condition that there are no similar law violations of HRS (Hawai'i Revised Statutes) 281-78. $1,000.00 will be due within their receipt of that Decision and Order, payable to the Department of Liquor Control. Again, also acknowledging that they've taken responsibility by selecting Alternative II. Fuke: Thank you very much, Ms. Frenz. Do you have any comments on the recommended penalty? Brown: No. Fuke: May I have a motion on the recommended penalty, which is to summarize, a $2,000.00 fine, with $1,000.00 suspension, provided that no similar violation occurs within a year? Hughes: So moved. Raymond: Second. Board Member Hughes moved to accept the recommendation by the Department for penalty in Case No. 2024-005, that the Licensee is assessed a penalty in the sum of TWO THOUSAND AND NO/100 DOLLARS ($2,000.00), with ONE THOUSAND AND NO/100 DOLLARS ($1,000.00) to be suspended for 12 months from the date of service of this Decision and Order, on the condition that there are no similar violations of Section 281-78(b)(1)(A) of the Hawaii Revised Statutes, as amended, within that period and that ONE THOUSAND AND NO/100 DOLLARS ($1,000.00) is to be paid within 30 days upon receipt of this Decision and Order, payable to the Department of Liquor Control; Seconded by Board Member Raymond. Fuke: Any discussion? There was no discussion from Board Members. Fuke: All those in favor please say "Aye." The Board Members voted "Aye." Fuke: Opposed say "Nay." There was no opposition by Board Members. Fuke: The motion is unanimously carried. The motion was carried unanimously Fuke: A Decision and Order will be issued very shortly and with the requirement that the penalty be paid within 30 days upon receipt of that notice. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, MAY 16, 2024 - HILO PAGE 18 OF 20 IV. Unfinished Business (11:12 AM) Fuke: There is no Unfinished Business. V. New Business (11:12AM) Fuke: There is also no New Business. VI. Announcements (11:12AM) Meetings of the Liquor Adjudication Board June 20, 2024, 10:30 A.M., Location To Be Determined. July 18, 2024, 10:30 A.M., Location To Be Determined. Fuke: The two items that were deferred, are they going to be heard on June 20t", or July 18t" . Takase: Probably July, June is going to run us into our renewal period. Fuke: So, the next meeting would be on July 18t" to accommodate the violator in Kona, so the meeting has to be in Kona? Takase: I think so, unless all the other cases are in Hilo, which we might defer it again. Fuke: But I thought the reason for the deferral for the one item was because he couldn't make it to Hilo? Takase: Yes, but if all the other cases are in Hilo, then we'll probably do it in Hilo, but this one we could have probably done in Kona. Fuke: Okay, any other announcements? There were no other announcements. Fuke: Okay, could I have a motion to adjourn the meeting? Hughes: So moved. Davenport: Second. Board Member Hughes moved to adjourn the meeting; Seconded by Board Member Davenport. Fuke: All those in favor? The Board Members voted "Aye." MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, MAY 16, 2024 - HILO PAGE 19 OF 20 Fuke: Opposed say "Nay." There was no opposition by Board Members. The motion was carried unanimously VII. Adjournment The meeting was adjourned at 11:15 AM. G ald Takase erector The May 16, 2024, Liquor Adjudication Board meeting minutes were approved as circulated, via email on June 20, 2024, by the Liquor Adjudication Board of the County of Hawaii on December 19, 2024. MINUTES - LIQUOR ADJUDICATION BOARD MEETING - THURSDAY, MAY 16; 2024 - HILO PAGE 20 OF 20