Bill Text: HI SB2545 | 2010 | Regular Session | Amended
Bill Title: Intoxicating Liquor; Brewpub Manufacturing
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Passed) 2010-07-07 - (S) Became law without the Governor's signature, Act 198, 7/6/2010, (Gov. Msg. No. 690). [SB2545 Detail]
Download: Hawaii-2010-SB2545-Amended.html
THE SENATE |
S.B. NO. |
2545 |
TWENTY-FIFTH LEGISLATURE, 2010 |
S.D. 2 |
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STATE OF HAWAII |
H.D. 1 |
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PROPOSED |
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A BILL FOR AN ACT
RELATING TO INTOXICATING LIQUOR.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 281-4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) It shall be unlawful for any person
who keeps or maintains any restaurant or other premises where food, beverages,
or entertainment are provided[,] or brought in by patrons or guests,
whether for compensation or not, or to which members of the public[,] or
members of an organization[,] resort for food, refreshment, or
entertainment[,] and who is not a licensee of the commission under this
chapter, to promote, encourage, aid, or permit the consumption of liquor on the
premises, except during the hours between [which licensed premises of
dispensers are permitted to be open for the transaction of business in the
county where the premises are located.] 6:00 a.m. and 12:00 a.m. An
establishment may operate between the hours of 12:00 a.m. and 2:00 a.m. under
this subsection only if it obtains a class 17 liquor license under section
281-31(q). An establishment that operates under this subsection shall be
subject to the requirements of this chapter and the rules adopted by the liquor
commission of the county in which the establishment is located during all hours
of operation, except as otherwise provided by law."
SECTION 2. Section 281-31, Hawaii Revised Statutes, is amended to read as follows:
"§281-31 Licenses, classes. (a) Licenses may be granted by the liquor commission as provided in this section.
(b) Class 1.
Manufacturer license. A license for the manufacture of liquor shall authorize
the licensee to manufacture the liquor therein specified and to sell it at
wholesale in original packages to any person who holds a license to resell it
and to sell draught beer or wine manufactured from grapes or other fruits grown
in the [State] state in any quantity to any person for private
use and consumption. Under this license, no liquor shall be consumed on the
premises except as authorized by the commission. Of this class, there shall be
the following kinds:
(1) Beer;
(2) Wine;
(3) Alcohol; and
(4) Other specified liquor.
It shall be unlawful for any holder of a manufacturer license to have any interest whatsoever in the license or licensed premises of any other licensee. This subsection shall not prevent the holder of a manufacturer license under this chapter or under the law of another jurisdiction from maintaining any interest in the license or licensed premises of a wholesale dealer licensee under this chapter.
(c) Class 2.
Restaurant license[.]:
(1) A license under this class shall authorize the licensee to sell liquor specified in this subsection for consumption on the premises; provided that a restaurant licensee, with commission approval, may provide off-premises catering of food and liquor; provided further that the catering activity shall be directly related to the licensee's operation as a restaurant. A licensee under this class shall be issued a license according to the category of establishment the licensee owns or operates. The categories of establishment shall be as follows:
(A) A standard bar; or
(B) Premises in
which live entertainment or recorded music is provided. Facilities for dancing
by the patrons may be permitted as provided by commission rules[.]:
(2) If a licensee
under class 2 desires to change the category of establishment the licensee owns
or operates, the licensee shall apply for a new license applicable to the
category of the licensee's establishment[.]; and
(3) Of this class, there shall be the following kinds:
(A) General (includes all liquor except alcohol);
(B) Beer and wine; and
(C) Beer.
Notwithstanding section 281-57, the commission may approve at one public hearing and without notice the change to a class 2 restaurant license of a licensee holding a class 5 dispenser license who meets the requirements of a class 2 license.
(d) Class 3.
Wholesale dealer license. A license for the sale of liquor at wholesale shall
authorize the licensee to import and sell only to licensees[,] or to
others who are by law authorized to resell the liquor specified by the
license but are not by law required to hold a license[, the liquor
therein specified]; provided that [samples of liquor may be sold] a
class 3 licensee may sell samples of liquor back to the manufacturer.
Under [the license,] a class 3 license, no liquor shall be
consumed on the premises except as authorized by the commission. Of this
class, there shall be the following kinds:
(1) General (includes all liquor except alcohol);
(2) Beer and wine; and
(3) Alcohol.
If any wholesale
dealer solicits or takes any orders in any county other than that where the
dealer's place of business is located, the orders may be filled only by
shipment direct from the county in which the wholesale dealer holds the dealer
license. Nothing in this subsection shall prevent a wholesaler from selling
liquor to post exchanges, ships' service stores, army or navy officers' clubs,
or similar organizations located on army or navy reservations, or to any vessel
other than vessels performing a regular water transportation service between
any two or more ports in the [State,] state, or to aviation
companies who operate an aerial transportation enterprise [as a common
carrier, under] subject to chapter 269[,] and engaged
in regular flight passenger services between any two or more airports in the [State]
state for use on aircraft, or aviation companies engaged in transpacific
flight operations for use on aircraft outside the jurisdiction of the State.
(e) Class 4.
Retail dealer license. A license to sell liquor at retail or to class 10 [licenses]
licensees shall authorize the licensee to sell the liquor therein
specified in their original packages. Under [the license,] a class 4
license, no liquor shall be consumed on the premises except as authorized
by the commission. Of this class, there shall be the following kinds:
(1) General (includes all liquor except alcohol);
(2) Beer and wine; and
(3) Alcohol.
(f) Class 5. Dispenser license.
(1) A license under this class shall authorize the licensee to sell liquor specified in this subsection for consumption on the premises. A licensee under this class shall be issued a license according to the category of establishment the licensee owns or operates. The categories of establishments shall be as follows:
(A) A standard bar;
(B) Premises in which a person performs or entertains unclothed or in attire restricted to use by entertainers pursuant to commission rules;
(C) Premises in which live entertainment or recorded music is provided; provided that facilities for dancing by the patrons may be permitted as provided by commission rules; or
(D) Premises in
which employees or entertainers are compensated to sit with patrons, regardless
of whether the employees or entertainers are consuming nonalcoholic beverages
while in the company of the patrons pursuant to commission rules[.];
(2) If a licensee
under class 5 desires to change the category of establishment the licensee owns
or operates, the licensee shall apply for a new license applicable to the
category of the licensee's establishment[.];
(3) Of this class, there shall be the following kinds:
(A) General (includes all liquor except alcohol);
(B) Beer and wine; and
(C) Beer.
(g) Class 6. Club license. A club license
shall be general only [(]but [excluding] shall exclude
alcohol[)] and shall authorize the licensee to sell liquor to members of
the club and to guests of the club enjoying the privileges of membership[,]
for consumption only on the premises kept and operated by the club; provided
that the license shall also authorize any club member to keep in the member's
private locker on the premises a reasonable quantity of liquor[, if]
owned by the member[,] for the member's own personal use and not to be
sold [and] that may be consumed only on the premises. A club licensee
shall be authorized to host charitable functions that are open to the general
public only pursuant to commission rules.
The categories of establishment shall be as follows:
(1) A standard bar; or
(2) Premises in which live entertainment or recorded music is provided. Facilities for dancing by the patrons may be permitted as provided by commission rules.
(h) Class 8.
Transient vessel license. A general license may be granted to the owner of any
vessel for the sale of liquor [(]other than alcohol[)] on board
the vessel while en route within the jurisdictional limits of the State and
within any port of the [State.] state. Sales shall be made only
for consumption by passengers and their guests on board the vessel. The
license shall be issuable in each county where the sales are to be made;
provided that the application for the license may be made by any agent
representing the owner.
(i) Class 9.
Tour or cruise vessel license. A general license may be granted to the owner
of any tour or cruise vessel for the sale of liquor [(]other than
alcohol[)] on board the vessel while in the waters of the [State;]
state; provided that sales be made only for consumption by passengers on
board while the vessel is in operation outside the port or dock of any island
of the [State,] state, unless otherwise approved by the county
where the license has been issued. The license shall be issuable in the county
[wherein] where the home port of the vessel is situated.
If, on any vessel for which no license has been obtained under this chapter,
any liquor is sold or served within three miles of the shore of any island of
the [State,] state, it shall constitute a violation of this
chapter.
The categories of establishment shall be as follows:
(1) A standard bar; or
(2) Premises in which live entertainment or recorded music is provided. Facilities for dancing by the patrons may be permitted as provided by commission rules.
(j) Class 10. Special license. A special license may be granted for the sale of liquor for a period not to exceed three days and pursuant to commission rule may be approved by the administrator for fundraising events by nonprofit organizations, political candidates, and political parties; provided that any registered educational or charitable nonprofit organization may sell liquors in their original packages for off-premises consumption. Of this class, there shall be the following kinds:
(1) General (includes all liquor except alcohol);
(2) Beer and wine; and
(3) Beer.
[Under this
license, the liquor therein specified] Liquor sold under a class 10
license shall be consumed on the premises.
(k) Class 11.
Cabaret license. A cabaret license shall be general only [(]but [excluding]
shall exclude alcohol[)] and shall authorize the sale of liquor
for consumption on the premises. This license shall be issued only for
premises where food is served, facilities for dancing by the patrons including
a dance floor are provided, [including a dance floor,] and live or
amplified recorded music or professional entertainment[,] except
professional entertainment by a person who performs or entertains unclothed[,]
is provided for the patrons; provided that professional entertainment by
persons who perform or entertain unclothed shall be authorized by:
(1) A cabaret license for premises where professional entertainment by persons who perform or entertain unclothed was presented on a regular and consistent basis immediately prior to June 15, 1990; or
(2) A cabaret license that, pursuant to rules adopted by the liquor commission, permits professional entertainment by persons who perform or entertain unclothed.
A cabaret
license under paragraph (1) or (2) authorizing professional entertainment by
persons who perform or entertain unclothed shall be transferable through June
30, 2000. A cabaret license under paragraph (1) or (2) authorizing
professional entertainment by persons who perform or entertain unclothed shall
not be transferable after June 30, 2000, except [when the transferee obtains]
upon approval [from] by the liquor commission[,]
and pursuant to rules adopted by the commission. Notwithstanding any rule of
the liquor commission to the contrary, cabarets in resort areas may be opened
for the transaction of business until [4] 4:00 a.m. throughout
the entire week.
(l) Class 12.
Hotel license. A license to sell liquor in a hotel shall authorize the
licensee to provide entertainment and dancing on the hotel premises and to sell
all liquor[,] except alcohol[,] for consumption on the premises;
provided that a hotel licensee, with commission approval, may provide off‑premises
catering of food and liquor[,] if the catering activity is directly
related to the licensee's food service.
Procedures such
as room service, self-service [(]no‑host[),] minibars or
similar service in guest rooms, and service at parties in areas that are the
property of and contiguous to the hotel[,] are permitted with commission
approval.
Any licensee who would otherwise fall within the hotel license class but holds a different class of license may be required to apply for a hotel license.
If the licensee applies for a change of classification prior to July 30, 1992, the licensee shall not be subject to the requirements of sections 281-52, 281-54, and 281-57 through 281‑59.
Any licensee
holding a class 12 license on May 1, 2007[, and] who would
otherwise [come within this class of] qualify for a class 15
license may apply to the liquor commission of the county in which the
licensee is seeking a change in liquor license for a change to a class 15
license; provided that the licensee shall not be subject to the requirements of
section 281-54 and sections 281-57 to 281-60.
If a licensee
holding a class 12 license on May 1, 2007[,] applies for a change
to a class 15 license, the respective liquor commission shall hold a public
hearing upon notice[, and upon]. On the day of hearing[,]
or any adjournment thereof, the liquor commission shall consider the
application, accept all written or oral testimony for or against the
application, and render its decision granting or refusing the application. If
the application is denied, the class 12 license shall continue in effect in
accordance with law.
(m) Class 13.
Caterer license. A general license may be granted to any applicant who serves
food as part of their operation for the sale of liquor [(]other than
alcohol[)] while performing food catering functions off the premises.
No catering
service for the sale of liquor shall be performed off the licensee's premises[,]
unless prior written notice of the service has been delivered to the office of
the liquor commission of the county concerned. The notice shall state the
date, time, and location of the proposed event and shall include a written
statement signed by the owner or representative of the property that the function
will be subject to the liquor laws and to inspection by investigators.
(n) Class 14. Brewpub license. A brewpub licensee:
(1) Shall manufacture
not more than [ten] thirty thousand barrels of malt beverages on
the licensee's premises during the license year;
(2) May sell malt beverages manufactured on the licensee's premises for consumption on the premises;
(3) May sell malt beverages manufactured by the licensee in brewery-sealed packages to class 3 wholesale dealer licensees pursuant to conditions imposed by the county by ordinance or rule;
(4) May sell
intoxicating liquor[,] purchased from a class 1 manufacturer licensee[,]
or a class 3 wholesale dealer licensee[,] to consumers for consumption
on the licensee's premises. The categories of establishments shall be as
follows:
(A) A standard bar; or
(B) Premises in which live entertainment or recorded music is provided. Facilities for dancing by the patrons may be permitted as provided by commission rules;
(5) May sell malt beverages manufactured on the licensee's premises to consumers in brewery-sealed kegs and growlers for off-premises consumption; provided that for purposes of this paragraph, "growler" means a glass container, not to exceed one half-gallon, which shall be securely sealed;
(6) May sell malt
beverages manufactured on the licensee's premises [to consumers,] in
recyclable containers [that may be] provided by the licensee or by the
consumer[, not to] which do not exceed one gallon per container[,
which] and are securely sealed on the licensee's premises[,] to
consumers for off-premises consumption;
(7) Shall comply with all regulations pertaining to class 4 retail dealer licensees when engaging in the retail sale of malt beverages; and
(8) May sell malt beverages manufactured on the
licensee's premises in brewery-sealed containers directly to class 2 restaurant
licensees, class 3 wholesale dealer licensees, class 4 retail dealer licensees,
class 5 dispenser licensees, class 6 club licensees, class 8 transient vessel
licensees, class 9 tour or cruise vessel licensees, class 10 special licensees,
class 11 cabaret licensees, class 12 hotel licensees, class 13 caterer
licensees, and class 15 condominium hotel licensees[,] pursuant to
conditions imposed by county regulations governing class 1 manufacturer
licensees and class 3 wholesale dealer licensees.
(o) Class 15.
Condominium hotel license. A license to sell liquor in a condominium hotel
shall authorize the licensee to provide entertainment and dancing on the
condominium hotel premises and to sell all liquor[,] except alcohol[,]
for consumption on the premises; provided that a condominium hotel licensee,
with commission approval, may provide off-premises catering; provided further
that the catering activity is directly related to the licensee's operation as a
condominium hotel.
Procedures such
as room service, self-service [(]no‑host[),] minibars or
similar service in apartments, and service at private parties in areas that are
the property of and contiguous to the condominium hotel[,] are permitted
with commission approval.
A condominium
hotel licensee shall not sell liquor in the manner authorized by a class 4
retail [[]dealer[]] license.
Any licensee who would otherwise [fall
within] meet the criteria for the condominium hotel license class but holds a different class of license
may be required to apply for a condominium hotel license.
(p) Class 16. Winery license. A winery licensee:
(1) Shall manufacture not more than ten thousand barrels of wine on the licensee's premises during the license year;
(2) May sell wine manufactured on the licensee's premises for consumption on the premises;
(3) May sell wine manufactured by the licensee in winery-sealed packages to class 3 wholesale dealer licensees pursuant to conditions imposed by the county by ordinance or rule;
(4) May sell wine manufactured on the licensee's
premises [to consumers] in winery-sealed kegs and magnums to
consumers for off-premises consumption; provided that for purposes of this
paragraph, "magnum" means a glass container[,] not to exceed
one half-gallon, which may be securely sealed;
(5) May sell wine manufactured on the licensee's
premises [to consumers,] in recyclable containers [that may be]
provided by the licensee or by the consumer[, not to] which do not
exceed one gallon per container[, which] and are securely sealed
on the licensee's premises[,] to consumers for off-premises
consumption;
(6) Shall comply with all rules pertaining to class 4 retail dealer licensees when engaging in the retail sale of wine; and
(7) May sell wine manufactured on the licensee's
premises in winery-sealed containers directly to class 2 restaurant licensees,
class 3 wholesale dealer licensees, class 4 retail dealer licensees, class 5
dispenser licensees, class 6 club licensees, class 8 transient vessel
licensees, class 9 tour or cruise vessel licensees, class 10 special licensees,
class 11 cabaret licensees, class 12 hotel licensees, class 13 caterer
licensees, class 14 brewpub licensees, and class 15 condominium hotel licensees[,]
pursuant to conditions imposed by county planning and public works departments
and rules governing class 3 wholesale dealer licensees.
(q) Class 17. Bring-your-own-beverage establishments.
A license of this class shall authorize the licensee to permit the consumption on the premises between the hours of 12:00 a.m. and 2:00 a.m. of liquor specified in this subsection brought in by patrons or guests. A licensee of this class shall be issued a license according to the kind of liquor permitted for consumption.
Of this class, there shall be the following kinds:
(A) General (includes all liquor except alcohol);
(B) Beer and wine; and
(C) Beer.
A licensee under this class shall be subject to all requirements of this chapter and of the rules adopted by the liquor commission of the county in which the establishment is located. If a licensee under this class desires to change the category of establishment the licensee owns or operates, the licensee shall apply for a new license applicable to the category of the licensee's establishment.
[(q)] (r)
Restaurants, retailers, dispensers, clubs, cabarets, hotels, caterers,
brewpubs, and condominium hotels licensed under class 2, class 4, class 5,
class 6, class 11, class 12, class 13, class 14, and class 15 shall maintain at
all times liquor liability insurance coverage in an amount of $1,000,000.
Proof of coverage shall be kept on the premises and shall be made available for
inspection by the commission at any time during the licensee's regular business
hours. In the event of a licensee's failure to obtain or maintain the required
coverage, the commission shall refuse to issue or renew a license[,] or
shall suspend or terminate the license as appropriate. No license shall be
granted, reinstated, or renewed until after the required insurance coverage is
obtained.
[(r)] (s)
It shall be unlawful for any retail licensee[,] except a class 10
licensee[,] to purchase, acquire[,] liquor from, or sell
liquor [from] to any person other than a wholesaler licensed
pursuant to this chapter, except as otherwise provided in this section.
[(s)] (t)
Any provision to the contrary notwithstanding, at the discretion of the county
liquor commission, permission may be granted to a bona fide hotel, restaurant,
or club licensed under class 2, class 6, class 11, class 12, class 14, class
15, [or] class 16, or class 17 to allow a patron to remove from
the licensed premises any portion of wine that was purchased or brought onto
the premises by a patron for consumption with a meal; provided that it is
recorked or resealed in its original container. This subsection applies only
to a valid holder of a class 2, class 6, class 11, class 12, class 14, class
15, [or] class 16, or class 17 license engaged in meal service.
[(t)] (u)
Sections 281-57 to 281-60 shall not apply to classes 8 [through], 9,
10 and 13."
SECTION 3. Section 281-45, Hawaii Revised Statutes, is amended to read as follows:
"§281-45 No license issued, when. No license shall be issued under this chapter:
(1) To any minor or to any person who has been
convicted of a felony and not pardoned [(except], or to any other
person not deemed by the commission to be a fit and proper person to have a
license; provided that the commission may grant a license under this chapter
to a corporation that has been convicted of a felony where the commission finds
that the [organization's] corporation's officers and shareholders
of twenty-five per cent or more of outstanding stock are fit and proper persons
to have a license[), or to any other person not deemed by the commission to
be a fit and proper person to have a license];
(2) To a corporation the officers and directors of which, or any of them, would be disqualified under paragraph (1) from obtaining the license individually, or a stockholder of which, owning or controlling twenty-five per cent or more of the outstanding capital stock, or to a general partnership, limited partnership, limited liability partnership, or limited liability company whose partner or member holding twenty-five per cent or more interest of which, or any of them would be disqualified under paragraph (1) from obtaining the license individually;
(3) Unless the applicant for a license or a renewal of a license, or in the case of a transfer of a license, both the transferor and the transferee, present to the issuing agency a signed certificate from the director of taxation and from the Internal Revenue Service showing that the applicant or the transferor and transferee do not owe the state or federal governments any delinquent taxes, penalties, or interest; or that the applicant, or in the case of a transfer of a license, the transferor or transferee, has entered into an installment plan agreement with the department of taxation and the Internal Revenue Service for the payment of delinquent taxes in installments and that the applicant is or the transferor or transferee is, in the case of a transfer of a license, complying with the installment plan agreement; or
(4) To an applicant for a class 2, class 4, class 5,
class 6, class 11, class 12, class 13, class 14, [or] class 15, or
class 17 license unless the applicant for issuance of a license or renewal
of a license, or in the case of a transfer of a license, both the transferor
and the transferee, present to the issuing agency proof of liquor liability
insurance coverage in an amount of $1,000,000; or
(5) To any applicant who has had any liquor license revoked less than two years previous to the date of the application for any like or other license under this chapter."
SECTION 4. Section 281-61, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:
"(c) The commission or board shall deny
renewal of a class 2, class 4, class 5, class 6, class 11, class 12, class 13,
class 14, [or] class 15, or class 17 license if the applicant for
renewal fails to present proof of the liquor liability insurance required by
section [281-31(q).] 281-31(r)."
SECTION 5. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 7. This Act shall take effect on July 1, 2020.
Report Title:
Intoxicating Liquor; BYOB Establishments; Brewpub Manufacturing
Description:
Restricts to 6:00 a.m. to 12:00 a.m., BYOB liquor consumption on premises not licensed by a liquor commission. Establishes a class 17 license for BYOB establishments operating between 12:00 a.m. and 2:00 a.m. Increases limit on on-premises brewpub licensee manufacturing from 10,000 to 30,000 barrels. Effective July 1, 2020. (PROPOSED SB2545 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.