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HomeMy WebLinkAboutRules and Regulations - Liquor Adjudication BoardRULES AND REGULATIONS OF THE LIQUOR CONTROL ADJITDICATION BOARD DEPARTMENT OF LIQUOR CONTROL COUNTY OF HAWAII TABLE OF CONTENTS PART I. PRACTICES AND PROCEDURES RULE PAGE 1.1 Authority .............. ..............................1 1.2 Definitions ............ ..............................1 1.3 Jurisdiction and Powers .................................. 1 1.4 Construction of Rules .. ..............................2 1.5 Limitation of Jurisdiction ...........................2 1.6 Meetings ............... ..............................2 1.7 Voting ................. ..............................3 1.8 Notice, Hearings ....... ..............................3 1.9 Rehearing .............. .............:................6 1.10 Stipulation ............ ..............................6 1.11 Offer to Settle ........ ..............................7 1.12 Stipulated Penalty ..... ..............................8 PART II. PRACTICES AND PROCEDURES 2.1 Methods Whereby the Public May Obtain Information .... 9 2.2 Adoption, Amendment or Repeal of Rules ..............10 2.3 Declaratory Ruling by Board ......................... 12 PART III. SEVERABILITY 3.1 Severability ........... .............................13 Effective August 18, 2006 1 PART I. Practice and Procedures Rule 1.1 AUTHORITY. Pursuant to and by virtue of the authority set forth in Chapter 281 and Chapter 91 of the Hawaii Revised Statutes and Article VII, Chapter 3 and Section. 13 -7 of the Charter of the County of Hawaii, the Liquor Control Adjudication Board, hereafter referred to as "Board ", of the Department of Liquor Control of the County of Hawaii, State of Hawaii, adopts these Rules and Regulations governing practices and procedures relating to the Board. Rule 1.2 DEFINITIONS. Words Regulations in the si3 vice versa; words of gender, words defined Revised Statutes shall used herein. used in these Rules and igular, include the plural, and any gender include any other in Chapter 281 of the Hawaii have the same.meaning wherever Rule 1.3 JURISDICTION AND POWERS. The Board shall hear and determine all complaints regarding alleged violations of the liquor control laws of the State, or complaints regarding alleged violation of Rules and Regulations established by the Liquor Commission and revoke or suspend any license or impose such penalties as may be provided by law upon finding violation thereof. Each member of the Board shall have the power respecting the administration of oaths, compelling the attendance of witnesses, the production of documentary evidence and examining the witnesses as are possessed by a circuit court judge at chambers. The exercise by the Board of the power, authority and discretion in it so vested shall be final in each case and shall not be reviewed or appealed to any court or tribunal, except as otherwise provided in Chapter 281 or Chapter 91 of the Hawaii Revised Statutes. Rule 1.4 CONSTRUCTION OF RULES. The rules shall be liberally construed to secure the just, speedy and inexpensive determination of every proceeding. Rule 1.5 - LIMITATION OF JURISDICTION. The jurisdiction of the Board is limited to those matters covered under the provisions of Chapters 91, 92 and 281 of the Hawaii Effective August 18, 2006 2 l' Revised Statutes, the Charter of the County of Hawaii, the Rules and Regulations of the Liquor Commission of the County of Hawaili and the Rules and Regulations of the Liquor Control Adjudication Board, County of Hawaii. Rule 1.6 MEETINGS. Regular meetings shall be held on the days and time to be selected by the Board at the start of the year, subject to change, in the hearing room of the Department of Liquor Control or other public place announced in advance; provided however, that if there is no business pending before the Board, the meeting shall be cancelled. Meeting agendas shall list all of the items to be considered and notice shall be on file at the office of the County Clerk or its designated notice site and at the office of the Department for inspection at least six (6) days before the meeting. Additionally, agendas for meetings held at locations other than the office of. the department shall be posted at the meeting site on the day of the meeting. The Board shall not add items to the agenda, once filed, without a two - thirds recorded vote of all members to which the Board is entitled; provided that no item shall be added to the agenda in the manner provided herein if the item is of substantial and significant interest which may affect the public. A special meeting shall be called upon publication of a notice in a newspaper of general circulation in this County at least twenty -four hours in advance of such meeting. If the requirement to publish notice cannot be met because of insufficient time, the meeting notice shall be made by broadcasting a minimum of three announcements in the English language over FCC licensed public radio stations in this county or on television stations with local audiences. Such announcements shall be broadcast twenty -four hours in advance of such meeting and shall be programmed to be heard between the hours of 7:00 a.m. to 5:00 P.M. Notice of such special meeting shall also be posted on the bulletin board of the Hawaii County building. Effective August 18, 2006 Rule 1.7 VOTING. Except as otherwise provided by law, all matters shall be determined by an affirmative vote of the majority of the membership to which the Board is entitled. If the Board is unable to approve, deny or render a decision on any item and no other motions regarding the matter are passed, the matter shall be continued for no more than two consecutive meetings for the purpose of rendering a decision otherwise the matter shall be considered dismissed. Rule 1.8 NOTICE, HEARINGS. Except as otherwise provided by law, in any proceeding involving the revocation or suspension of a license or other disciplinary action by the Board, which by law is required to be determined after an opportunity for a hearing, the following shall apply: a. NOTICE. The licensee, or any person, hereinafter referred to as Party, subject to adjudication pursuant to Chapter 281, Hawaii Revised Statutes shall be notified in writing of the Complaint and Accusation, hereinafter referred to as Complaint, and of the licensee's or Party's right to a hearing. Such notice shall conform and be given according to the requirements of Section 91 -9(b) and Section 281- 91, Hawaii Revised Statutes and all parties shall be afforded an opportunity for hearing after reasonable notice. The notice shall include a statement of: 1. The date, time and nature of the hearing, 2. The legal authority under which the hearing is held, 3. The particular section(s) of statute or rule involved or specific description of the action before the Board. b. NOTICE. ADJUDICATIONS. Except as otherwise provided by law, in any proceeding involving suspension, revocation or other disciplinary action by the Board, which by law is required to be determined after an opportunity for a hearing, the licensee or Party shall be notified in writing of the hearing and such notice shall be known as a Effective August 18, 2006 4 Complaint and Accusation, hereinafter referred to as Complaint, and shall conform with Chapters 91 and 261 -91, Hawaili Revised Statutes and shall be furnished to the licensee, its authorized representative, or person in active charge of the premises, respectively, not less than twenty days before such hearing. The licensee shall be entitled to be heard in person and /or through Counsel. C. SERVICE. Whenever the service of any Complaint, order or notice cannot be completed to the holder of the license, its authorized representative or its registered eP rson in active charge of the premises, or if the holder of the license cannot be found after diligent search, then service may be made by posting a certified copy of the notice or order in a conspicuous place on the licensed premises and depositing such certified copy in the certified mail of the U.S. Post Office, provided that if the use of the licensed premises has been lost by the licensee, such service shall be by certified mail as provided herein. Whenever service is provided in accordance to this section and a reply is not presented before or at the hearing, the Board may proceed with the Alternative III hearing, and upon proper findings of facts and conclusions of law shall issue a decision and order. d. ANSWER TO COMPLAINT. The licensee shall provide a response within five working days after the receipt of the Complaint, as provided herein: 1. The licensee or Party, upon selection of Alternative I, stipulates not to exercise its right to a hearing and appeal, in which case, the Board may take disciplinary action against such licensee on the Complaint and Accusation according to law, without the licensee's presence. 2. The licensee or Party, upon selection of Alternative II, stipulates not to exercise its right to a hearing and Effective August 18, 2006 5 appeal, but requests an informal hearing to present the circumstances surrounding the violation for consideration by the Board, and may present such circumstances either in person or through a written statement. 3. The licensee or Party, upon selection of Alternative III, requests a formal hearing, otherwise known as a contested case hearing, to offer defenses to the charges in the Complaint and Accusation. In contested cases, the licensee involved shall be required to be present at the hearing. If the licensee or Party fails to appear at the hearing after being duly notified, the contested case may proceed in the licensee's or Party's absence and the Board may adjudicate the complaint and assess penalties. 4. The licensee, upon selection of Alternative IV, Stipulated Penalty, stipulates not to exercise the right to a hearing and appeal, in which case, the licensee shall pay the stipulated penalty as set forth in Rule 1.12, and shall not be required to appear before the Liquor Control Adjudication Board. e. DECISION. The decision of the Board shall be subject to the limitations or standards as may be prescribed by law. If the Board decides in favor of the licensee, it shall promptly notify the licensee thereof. If the Board decides otherwise, it shall issue an appropriate decision and order. Such decision and order shall be accompanied by separate findings of fact and conclusions of law. The Board shall within. a reasonable time send a certified copy thereof to the licensee. Rule 1.9 REHEARING. In a contested case hearing, a licensee or Party may file a motion for a rehearing, and shall file such motion within fifteen days of the receipt of the decision and order issued by the Board. The motion for rehearing may be on all or part of the Effective August 18, 2006 6 issues of the case. The motion shall be submitted with affidavits setting forth facts and a memorandum setting forth the reasons and arguments in support of the motion. The Board shall rule on such motion and inform the licensee of its ruling in writing. If the Board grants the motion, it shall set the date for rehearing and notify the licensee in the same manner provided for hearing. The Board shall provide notice to the licensee or Party and other persons affected by said motion by publication or otherwise as the Board shall direct. The publication of notice shall state the name and address of the licensee, a statement of the position or contention of the licensee and the date, time and place of the hearing. The licensee shall deposit a fee equal to the cost of the publication of notice and notice to other persons affected by said petition. The Board may limit the scope of the rehearing to limited issues of fact or Law. If the Board decides otherwise, it shall issue an appropriate findings of fact, conclusions of law and decision and order. The Board shall within a reasonable time send a certified copy thereof to the petitioner. Rule 1.10 STIPULATION. Any of the foregoing procedures may be modified or waived by stipulation of the parties and informal disposition may be made of any contested case by stipulation, agreed settlement, consent order or default. Judicial review shall be as provided by law. Rule 1.11 OFFER TO SETTLE. A licensee and the Department may enter into a written agreement as to the disposition of the case. a. The licensee and the Department may enter into an agreement that upon entering an admission to the violation charged, the Department will take certain actions or adopt certain positions, which may include the dismissal of other charges, and /or the Effective August 18, 2006 7 recommending or not opposing of specific penalties on the charge to which the admission was entered. b. If the licensee and the Department enter into such an agreement, then the agreement shall be submitted to the Liquor Control Adjudication Board at its regularly scheduled meeting for which the matter is scheduled for a hearing. c. At the hearing on the matter, the Liquor Control Adjudication Board shall, by vote of a majority of the members to which the Board is entitled, take action to accept or reject the agreement. 1. If the Board accepts the agreement, it shall impose the penalty stated in the agreement. 2. If the Board rejects the agreement, then it may, with the consensus of all parties, hear the case on that day or schedule the matter for a hearing on the merits at its next regularly scheduled meeting. 3. If the Board rejects the agreement, evidence of an admission to a violation or of an offer to admit to a violation charged is not admissible against the licensee. 4. Notwithstanding the acceptance by the Board of such an agreement, the Board shall not make any finding of the violation without making such inquiry as shall satisfy the Board that there is a factual basis for the agreement. Rule 1.12 STIPULATED PENALTY. A licensee who is cited by the department as having violated any of the rules herein provided may waive the right to a hearing and appeal pursuant to the provisions contained herein, admit to the charge (Alternative IV, Stipulated Penalty) prior to the hearing and shall pay the penalty as herein stated. Effective August 18, 2006 8 a. For the first violation of any one of the rules herein provided, the licensee shall pay a penalty of one hundred dollars ($100.00) to the department at the time that the licensee admits to the charge. M For the second violation of the same rule within three years of the initial violation, the licensee shall pay a penalty of two hundred $200.00) to the department at the time that the licensee admits to the charge. c. Any subsequent violations of the same rule shall be processed in accordance to Rule 1.8. d. A licensee may waive the right to a hearing and appeal pursuant to this rule for the following violations: 1. Rule 3 -2 -D.1 Failure to obtain an Alteration Permit requiring a building permit, provided that this shall not apply to an alteration permit which is associated with an Increase in Premises. 2. Rule 3 -2 -D.2 Failure to obtain an Entertainment Permit by a holder of a Class 1, 3 or 4 liquor license. 3. Rule 3 -2 -D.5 Failure to Obtain an Outside Storage Permit. 4. Rule 3 -2 -D.8 Failure to obtain an Entertainment Permit by a Person Less than 21 years of Age. S. Rule 3- 2 -D.10 Failure to obtain a Private Host Permit. 6. Rule 3- 2 -D.11 Failure to obtain a Product Tasting Permit. 7. Rule 3- 2 -D.12 Failure to obtain a Teen Event Permit. Effective August 18, 2006 B. Rule 3 -6 Failure to submit an Initial or Final report of Gross Liquor Sales. 9. Rule 4 -6 -B Failure to Notify the Commission of the election of officers and directors of a corporate license. 10. Rule 5 -3 Failure to Post the Annual List of Employees with Liquor Cards. 11. Rule 5 -10 Failure to Possess Liquor Laws. 12. Rule 5 -11 Failure to provide Notice of Temporary Closing. 13. Rule 5 -14 Failure to obtain approval of Change of Trade Name. PART II. GENERAL PROVISIONS Rule 2.1 METHODS WHEREBY PUBLIC MAY OBTAIN INFORMATION. The public may obtain information as to matters within the jurisdiction of this Board by inquiring at: a. The Office of the Lieutenant Governor of the State of Hawaii where there are on file all rules of the Board; or b. The Office of the Clerk of the County of Hawaii where there are on file all roles of the Board; or C. The main Office of the Department of Liquor Control. All rules, orders or opinions of the Board are on file and available for public inspection at said office. d. Pursuant to Chapter 92F, Hawaii Revised Statutes, any person may, inspect public records and such inquiry may be made in person at said office[s] during the business hours or by submitting a request for 'information in writing or by telephone to the department. Requests for copies of records shall be Effective August 18, 2006 10 distributed in a timely manner and upon payment of the fixed cost as provided by law. Rule 2.2 ADOPTION, AMENDMENT OR REPEAL OF RULES. a. Any interested person may petition the Board requesting the adoption, amendment or repeal of any rule of the Board. b. The petition shall be submitted in twelve (12) copies and shall include: 1. A statement of the nature of the petitioner's interest. 2. A draft or the substance of the proposed rule or amendment or a designation of the provisions sought to be repealed. 3. An explicit statement of the reasons in support of the proposed rule, amendment or repeal. C. The Board shall within ninet days after the submission of the petition either deny the petition in writing, stating its reasons for such denial, or initiate proceedings in accordance with Chapter 91 -3 for the adoption, amendment or repeal of the rule, as the case may be. d. PROCEDURES. Prior to the adoption, amendment or repeal of the rule and regulations of the Board, the Board shall: 1. Give at least 30 days notice for a public hearing. Such notice shall include a statement of the substance of the proposed rule, and the date, time and place of the hearings. The notice, together with the proposed rule for adoption; amendment or repeal, shall be mailed to all licensees and to all persons who have made a timely written request of the agency for advance notice of its rulemaking proceedings, and shall be published at least once in a newspaper of general circulation in Effective August 18, 2006 11 the county in both East and West Hawaii. 2. Afford all interested persons opportunity to submit data, views or arguments, orally or in writing. The agency may make its decision at the public hearing or announce then the date as to when it intends to make a decision. Upon the adoption, amendment or repeal of a rule, the Board shall, if requested to do so by an interested person, issue a concise statement of the principal reasons for and against its determination. 3. The Board may change a rule between the original proposed as presented at a public hearing and as finally adopted, provided such changes shall not be so substantial as to affect the rights of the licensees and the general public. 4. A rule which has been adopted, amended or repealed, upon the approval of the mayor of the county, shall become effective ten days after the filing with the county clerk. Rule 2.3 DECLARATORY RULING BY THE BOARD. a. Any interested person may petition the Board for a declaratory order as to the applicability of any statute, ordinance or any rule or order by the Board. b. The petition shall be submitted in twelve (12) copies and shall contain: 1. The name, address and telephone number of the petitioner. 2. A statement of the nature of the petitioner's interest, including reasons for the submission of the petition. 3. A designation of the specific provision, rule or order in question. Effective August 18, 2006 12 4. A complete state of facts. 5. A statement of the position or contention of the petitioner. 6. A memorandum of authorities, containing a full discussion of the reasons, including any legal authorities, in support of such position or contention. c. Any petition which does not conform to the foregoing requirements may be rejected. d. The Board may for good cause refuse to issue a declaratory ruling. Without limiting the generality of the foregoing, the Board may so refuse where: 1. The question is speculative or purely hypothetical and does not involve existing facts, or facts which can reasonable be expected to exist in the near future. 2. The petitioner's interest is not of the type which .would give the petitioner standing to maintain an action if the petitioner were to seek judicial relief. 3. The issuance of the declaratory ruling may adversely affect the interests of the State or County, the department or any of their officers or employees in any litigation which is pending or may be reasonable be expected to arise. 4. The matter is not within the .jurisdiction of the Board. e. Where any question of law is involved, the Board may refer the matter to the Corporation Counsel. The Board may also obtain the assistance of other agencies where necessary or desirable. f. Upon the disposition of the petition, the petitioner shall be informed in writing thereof by the Board. Effective August 18, 2006 13 g. Orders disposing of petitions shall have the same status as other Board orders. Orders shall be applicable only to the fact situation alleged in the petition or set forth in the order. They shall not be applicable to different fact situations or where additional facts not considered in the order exist. PART III. SEVERABILITY RULE 3.1 SEVERABILITY. If any provision of these Rules and Regulations or the application thereof to any person or circumstances is held invalid by a court of competent jurisdiction, such invalidity shall not affect other provisions or applications of the Rules and Regulations which can be given effect without the invalid provision or application, and to this end, the provisions of these Rules and Regulations are declared to be severable. Effective August 18, 2006 14 ALTERNATIVE IV. STIPULATED PENALTY PURSUANT TO RULE 1.12 OF THE RULES AND REGULATIONS OF THE LIQUOR CONTROL ADJUDICATION BOARD I acknowledge receipt of this Notice of Complaint and Accusation and do hereby admit to the allegation therein and stipulate that disciplinary action may be taken on this Complaint and Accusation according to law, without my presence. The undersigned informs the Liquor Control Adjudication Board of the selection to waive its right to a hearing and to be subject to penalties pursuant to Rule 1.12. Dated Violation: ❑ First Offense $100 ❑ Second Offense $200 Licensee dba By Title Effective August 18, 2006 15 LIQUOR CONTROL 7WEPARTMENT OF LIQUOR CONTROL COUNTY :, HAWAI#I, STATE ;, t Hearing - Hawaii • HawaiiWest Today. May 14, 2006 Dates and Places of Public Hearings: June (F '; Room, Liquor Control, 75-5722 a Place, LiquorJune 22, 2006, 12:00 Noon, Meeting Room, Department of Control,Lagoon Suite 1- Hilo, Hawaili. 4=71�, Deput nsel Date: _6 F- 0':� - 04 Ow r