RELATING TO LIQUOR.

SB2835

THE SENATE

S.B. NO.

2835

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to liquor
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

PART I

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SECTION
1.
�
The legislature finds that some of the
requirements for a temporary liquor license in the county of Maui are oppressively
burdensome without providing any public benefit.
�
A temporary liquor
license, known as a class 10 special license, allows a nonprofit group,
political candidate, or political party to serve alcohol at a fundraising event
lasting no longer than three days.
�
Among the onerous
requirements that are only imposed
in the county of Maui
are the requirements to submit the special license application in
person and to provide a handwritten signature on the application.
�
The applicant must also obtain various
separate departmental clearances and produce detailed illustrative materials
that are duplicative of existing enforcement mechanisms.
�
In addition, if the applicant holds the
fundraising event at a location involving multiple parcels with separate tax
map key numbers, such as many golf courses, the applicant must submit a separate
application for each parcel, despite the event occurring in what is otherwise a
single location.
�
Many of these
requirements do not apply to comparable
temporary liquor
licenses in other counties.

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The
legislature believes that these requirements discourage community organizations
from hosting fundraisers, are not necessary for the effective regulation of a
temporary event, and may encourage community organizations to hold their
fundraisers without obtaining a liquor license.

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Accordingly,
the purpose of this part is to streamline the class 10 special license
application process to reduce fundraising costs in a manner that maintains public
safety and the protection of event participants.

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SECTION
2.
�
Section 281-31, Hawaii Revised
Statutes, is amended by amending subsection (j) to read as follows:

����
"
(j)
�
Class 10.
�

Special license.

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(1)
�
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; provided further that any social club granted tax‑exempt
status pursuant to section 501(c)(7) of the Internal Revenue Code of 1986, as
amended, may sell wine from the social club's inventory to the club's members
for off-premises consumption.
�
Of this class, there shall be the following kinds:

���������
(A)
�
General (includes all liquor except
alcohol);

���������
(B)
�
Beer and wine; and

���������
(C)
�
Beer.

���������
Liquor
sold under a class 10 license shall be consumed on the premises.

����
(2)
�
Notwithstanding any other section of
this chapter to the contrary, the commission shall waive any hearings, fees,
notarization of documents, submission of floor plans and other governmental
clearances, and other requirements for the issuance of a class 10 license.
�
The class 10 license granted under this
subsection for a fundraising event shall include the ability to auction off, at
a live or silent auction, liquor in sealed or covered glass, ceramic, or metal
containers or services that provide liquor.
�

No criminal history record check under section 281-53.5 or 846-2.7 or
any other section of this chapter shall be required.
�
The commission may require proof of liquor
liability insurance for the fundraising event and a current list of officers
and directors if the applicant is a nonprofit organization.

����
(3)
�
Notwithstanding any other section of
this chapter to the contrary, in any county with a population of fewer than two
hundred thousand residents but more than one hundred thousand residents, an
application for a class 10 license:

���������
(A)
�
May be submitted electronically and,
if submitted electronically, the inclusion of an electronic signature shall
satisfy any requirement for a physical, handwritten signature or other
signature;

���������
(B)
�
May include an applicant's first and
last name in satisfaction of any requirement for the submission of the
applicant's full name;

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(C)
�
May be applicable to two or more adjacent
parcels of land; provided that all parcels of land are controlled by the same
entity; and

���������
(D)
�
Shall not
be conditioned upon
the submission, approval, or completion of any visual renderings, illustrative
materials, fire-related clearances, safety inspections, or miscellaneous
inspections conducted by any other county department or agency.

���������
An
application under this subsection shall be sufficient if it satisfies all of
the requirements specified under this subsection.
�
No county or county liquor commission shall
require, request, or condition the issuance of a class 10 license upon
compliance with any other approval, clearance, inspection, certification, or
condition not expressly required by this subsection.
�
Nothing in this subsection shall be construed
to limit the authority of a county to enforce applicable fire or building codes
through independent enforcement actions.
"

PART II

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SECTION 3.
�

The legislature finds that effective educational and enforcement
programs are necessary to mitigate the significant impact that alcohol
consumption has on public health and safety.
�

The legislature also finds that the responsible management of alcohol
sales and consumption is essential to fostering a safe and healthy community
for all residents and visitors.
�
Under
current state law, county liquor commissions are authorized to use a portion of
the fines assessed against liquor licensees to fund public liquor-related
educational or enforcement programs.
�

However, the amount of funds authorized may not be sufficient to support
the educational initiatives and enforcement programs needed to reduce
alcohol-related harm.
�
The legislature
further finds that enhancing educational efforts regarding responsible
drinking, the risks associated with alcohol misuse, and the promotion of
healthy lifestyle choices is vital to ensuring a safer future for our youth and
community.

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Accordingly, the purpose of this part is to
increase the percentage of fines assessed by county liquor commissions that may
be used to fund public liquor-related educational or enforcement programs.

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SECTION 4.
�

Section 281-17, Hawaii Revised Statutes, is amended by amending
subsection (a) to read as follows:

����
"(a)
�

The liquor commission, within its own county, shall have the
jurisdiction, power, authority, and discretion, subject only to this chapter:

����
(1)
�
To grant, refuse, suspend, and revoke
any license for the manufacture, importation, and sale of liquors;

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(2)
�
To take appropriate action against a
person who, directly or indirectly, manufactures, sells, or purchases any
liquor without being authorized pursuant to this chapter; provided that in
counties that have established by charter a liquor control adjudication board,
the board shall have the jurisdiction, power, authority, and discretion to hear
and determine administrative complaints of the director regarding violations of
the liquor laws of the State or of the rules of the liquor commission, and
impose penalties for violations thereof as may be provided by law;

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(3)
�
To control, supervise, and regulate the
manufacture, importation, and sale of liquors by investigation, enforcement,
and education; provided that any educational program shall be limited to the
commission staff, commissioners, liquor control adjudication board members, and
licensees and their employees, and shall be financed through the money
collected from the assessment of fines against licensees; provided that fine
moneys, not to exceed [
ten
]
twenty
per cent a year of fines
accumulated, may be used to fund public liquor-related educational or
enforcement programs;

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(4)
�
From time to time to make, amend, and
repeal rules, not inconsistent with this chapter, as in the judgment of the
commission are deemed appropriate for carrying out this chapter and for the
efficient administration thereof, and the proper conduct of the business of all
licensees, including every matter or thing required to be done or [
which
]

that
may be done with the approval or consent, by order, under the
direction or supervision of, or as prescribed by the commission; which rules,
when adopted as provided in chapter 91 shall have the force and effect of law;

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(5)
�
Subject to chapter 76, to appoint and
remove an administrator, who may also be appointed an investigator and who
shall be responsible for the operations and activities of the staff.
�
The administrator may hire and remove hearing
officers, investigators, and clerical or other assistants as its business may
from time to time require, prescribe their duties and fix their compensation,
and engage the services of experts and persons engaged in the practice of a
profession, if deemed expedient.
�
Every
investigator, within the scope of the investigator's duties, shall have the
powers of a police officer;

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(6)
�
To limit the number of licenses of any
class or kind within the county, or the number of licenses of any class or kind
to do business in any given locality, when in the judgment of the commission [
such
]

the
limitations are in the public interest;

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(7)
�
To prescribe the nature of the proof to
be furnished, the notices to be given, and the conditions to be met or observed
in case of the issuance of a duplicate license in place of one alleged to have
been lost or destroyed, including a requirement of any indemnity deemed
appropriate to the case;

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(8)
�
To fix the hours between which licensed
premises of any class or classes may regularly be open for the transaction of
business, which shall be uniform throughout the county as to each class
respectively;

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(9)
�
To prescribe all forms to be used for
the purposes of this chapter not otherwise provided for in this chapter, and
the character and manner of keeping of books, records, and accounts to be kept
by licensees in any matter pertaining to their business;

���
(10)
�
To investigate violations of this
chapter and, notwithstanding any law to the contrary, violations of the
applicable department of health's allowable noise levels, through its
investigators or otherwise, to include covert operations, and to report violations
to the prosecuting officer for prosecution where appropriate.
�
Investigations of violations of
chapter 244D shall be referred to the director of taxation to hear and
determine complaints against any licensee;

���
(11)
�
To prescribe, by rule, the terms,
conditions, and circumstances under which persons or any class of persons may
be employed by holders of licenses;

���
(12)
�
To prescribe, by rule, the term of any
license or solicitor's and representative's permit authorized by this chapter,
the annual or prorated amount, the manner of payment of fees for the licenses
and permits, and the amount of filing fees;

���
(13)
�
To prescribe, by rule, regulations on
dancing in licensed premises; and

���
(14)
�
To prescribe, by rule, the
circumstances and penalty for the unauthorized manufacturing or selling of any
liquor."

PART III

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SECTION 5.
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Statutory material to be repealed is bracketed and stricken.
�
New statutory material is underscored.

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SECTION
6.
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This Act shall take effect upon its
approval.

INTRODUCED
BY:

_____________________________

Report Title:

Intoxicating
Liquor; Liquor License; Class 10 Special License; Liquor Commission; Fines; Educational
and Enforcement Programs

Description:

In
counties of fewer than 200,000 residents, but more than 100,000 residents, exempts
the 3-day temporary liquor licenses for
fundraising events, known as
class 10 special licenses, from any requirement to obtain fire-related
clearances.
�
Allows applications for
class 10 special licenses to be submitted electronically and for a single
application to apply any fundraising event that spans multiple parcels of land
owned by the same entity.
�
Increases the percentage of fines
assessed by all county liquor commissions that may be used to fund public
liquor-related educational or enforcement programs.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.