§281-31 - Licenses, classes.

PART III. LICENSES AND PERMITS, GENERAL PROVISIONS

§281-31 Licenses, classes. (a) Licenses may be granted by the liquor commission as provided in this section.

(b) Class 1. Manufacturer license. A licensefor the manufacture of liquor shall authorize the licensee to manufacture theliquor therein specified and to sell it at wholesale in original packages toany person who holds a license to resell it and to sell draught beer or winemanufactured from grapes or other fruits grown in the State in any quantity toany person for private use and consumption. Under this license, no liquorshall be consumed on the premises except as authorized by the commission. Ofthis 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 amanufacturer license to have any interest whatsoever in the license or licensedpremises of any other licensee. This subsection shall not prevent the holderof a manufacturer license under this chapter or under the law of anotherjurisdiction from maintaining any interest in the license or licensed premisesof a wholesale dealer licensee under this chapter.

(1) A license under this class shall authorize thelicensee to sell liquor specified in this subsection for consumption on thepremises; provided that a restaurant licensee, with commission approval, mayprovide off-premises catering of food and liquor; provided further that thecatering activity shall be directly related to the licensee's operation as arestaurant. A licensee under this class shall be issued a license according tothe category of establishment the licensee owns or operates. The categories ofestablishment shall be as follows:

(A) A standard bar; or

(B) Premises in which live entertainment orrecorded music is provided. Facilities for dancing by the patrons may bepermitted as provided by commission rules.

(2) If a licensee under class 2 desires to change thecategory of establishment the licensee owns or operates, the licensee shallapply for a new license applicable to the category of the licensee'sestablishment.

(3) Of this class, there shall be the followingkinds:

(A) General (includes all liquor exceptalcohol);

(B) Beer and wine; and

Notwithstanding section 281-57, the commission mayapprove at one public hearing and without notice the change to a class 2restaurant license of a licensee holding a class 5 dispenser license who meetsthe requirements of a class 2 license.

(d) Class 3. Wholesale dealer license. Alicense for the sale of liquor at wholesale shall authorize the licensee toimport and sell only to licensees, or to others who are by law authorized toresell but are not by law required to hold a license, the liquor thereinspecified; provided that samples of liquor may be sold back to themanufacturer. Under the license, no liquor shall be consumed on the premisesexcept as authorized by the commission. Of this class, there shall be the followingkinds:

(1) General (includes all liquor except alcohol);

(2) Beer and wine; and

(3) Alcohol.

If any wholesale dealer solicits or takes any ordersin 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 thewholesale dealer holds the dealer license. Nothing in this subsection shallprevent a wholesaler from selling liquor to post exchanges, ships' servicestores, army or navy officers' clubs, or similar organizations located on armyor navy reservations, or to any vessel other than vessels performing a regularwater transportation service between any two or more ports in the State, or toaviation companies who operate an aerial transportation enterprise as a commoncarrier, under chapter 269, engaged in regular flight passenger servicesbetween any two or more airports in the State for use on aircraft, or aviationcompanies engaged in transpacific flight operations for use on aircraft outsidethe jurisdiction of the State.

(e) Class 4. Retail dealer license. Alicense to sell liquor at retail or to class 10 licenses shall authorize thelicensee to sell the liquor therein specified in their original packages. Under the license, no liquor shall be consumed on the premises except asauthorized by the commission. Of this class, there shall be the followingkinds:

(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 thelicensee to sell liquor specified in this subsection for consumption on thepremises. A licensee under this class shall be issued a license according tothe category of establishment the licensee owns or operates. The categories ofestablishments shall be as follows:

(A) A standard bar;

(B) Premises in which a person performs orentertains unclothed or in attire restricted to use by entertainers pursuant tocommission rules;

(C) Premises in which live entertainment orrecorded music is provided; provided that facilities for dancing by the patronsmay be permitted as provided by commission rules; or

(D) Premises in which employees orentertainers are compensated to sit with patrons, regardless of whether theemployees or entertainers are consuming nonalcoholic beverages while in thecompany of the patrons pursuant to commission rules.

(2) If a licensee under class 5 desires to change thecategory of establishment the licensee owns or operates, the licensee shallapply for a new license applicable to the category of the licensee'sestablishment.

(3) Of this class, there shall be the followingkinds:

(A) General (includes all liquor exceptalcohol);

(B) Beer and wine; and

(g) Class 6. Club license. A club licenseshall be general only (but excluding alcohol) and shall authorize the licenseeto sell liquor to members of the club and to guests of the club enjoying theprivileges of membership, for consumption only on the premises kept andoperated by the club; provided that the license shall also authorize any clubmember to keep in the member's private locker on the premises a reasonablequantity of liquor, if owned by the member, for the member's own personal useand not to be sold and that may be consumed only on the premises. A clublicensee shall be authorized to host charitable functions that are open to thegeneral public only pursuant to commission rules.

The categories of establishment shall be asfollows:

(1) A standard bar; or

(2) Premises in which live entertainment or recordedmusic is provided. Facilities for dancing by the patrons may be permitted asprovided by commission rules.

(h) Class 8. Transient vessel license. Ageneral license may be granted to the owner of any vessel for the sale ofliquor (other than alcohol) on board the vessel while en route within thejurisdictional limits of the State and within any port of the State. Salesshall be made only for consumption by passengers and their guests on board thevessel. The license shall be issuable in each county where the sales are to bemade; provided that the application for the license may be made by any agentrepresenting 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 forthe sale of liquor (other than alcohol) on board the vessel while in the watersof the State; provided that sales be made only for consumption by passengers onboard while the vessel is in operation outside the port or dock of any islandof the State, unless otherwise approved by the county where the license hasbeen issued. The license shall be issuable in the county wherein the home portis situated. If, on any vessel for which no license has been obtained under thischapter, any liquor is sold or served within three miles of the shore of anyisland of the State, it shall constitute a violation of this chapter.

The categories of establishment shall be asfollows:

(1) A standard bar; or

(2) Premises in which live entertainment or recordedmusic is provided. Facilities for dancing by the patrons may be permitted asprovided by commission rules.

(j) Class 10. Special license. A speciallicense may be granted for the sale of liquor for a period not to exceed three daysand pursuant to commission rule may be approved by the administrator forfundraising events by nonprofit organizations, political candidates, andpolitical parties; provided that any registered educational or charitablenonprofit organization may sell liquors in their original packages foroff-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 shallbe consumed on the premises.

(k) Class 11. Cabaret license. A cabaretlicense shall be general only (but excluding alcohol) and shall authorize thesale of liquor for consumption on the premises. This license shall be issuedonly for premises where food is served, facilities for dancing by the patronsare provided, including a dance floor, and live or amplified recorded music orprofessional entertainment, except professional entertainment by a person whoperforms or entertains unclothed, is provided for the patrons; provided thatprofessional entertainment by persons who perform or entertain unclothed shallbe authorized by:

(1) A cabaret license for premises where professionalentertainment by persons who perform or entertain unclothed was presented on aregular and consistent basis immediately prior to June 15, 1990; or

(2) A cabaret license that, pursuant to rules adoptedby the liquor commission, permits professional entertainment by persons whoperform or entertain unclothed.

A cabaret license under paragraph (1) or (2)authorizing professional entertainment by persons who perform or entertainunclothed shall be transferable through June 30, 2000. A cabaret license underparagraph (1) or (2) authorizing professional entertainment by persons whoperform or entertain unclothed shall not be transferable after June 30, 2000,except when the transferee obtains approval from the liquor commission, andpursuant to rules adopted by the commission. Notwithstanding any rule of theliquor commission to the contrary, cabarets in resort areas may be opened forthe transaction of business until 4 a.m. throughout the entire week.

(l) Class 12. Hotel license. A license tosell liquor in a hotel shall authorize the licensee to provide entertainmentand dancing on the hotel premises and to sell all liquor, except alcohol, forconsumption on the premises; provided that a hotel licensee, with commissionapproval, may provide off-premises catering of food and liquor, if the cateringactivity 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 partiesin areas that are the property of and contiguous to the hotel, are permittedwith commission approval.

Any licensee who would otherwise fall withinthe hotel license class but holds a different class of license may be requiredto apply for a hotel license.

If the licensee applies for a change ofclassification prior to July 30, 1992, the licensee shall not be subject to therequirements of sections 281-52, 281-54, and 281-57 through 281‑59.

Any licensee holding a class 12 license onMay 1, 2007, and who would otherwise come within this class of license mayapply to the liquor commission in which the licensee is seeking a change inliquor license for a change to a class 15 license; provided that the licenseeshall not be subject to the requirements of section 281-54 and sections 281-57to 281-60.

If a licensee holding a class 12 license onMay 1, 2007, applies for a change to a class 15 license, the respectiveliquor commission shall hold a public hearing upon notice, and upon the day ofhearing, or any adjournment thereof, the liquor commission shall consider theapplication, accept all written or oral testimony for or against theapplication, and render its decision granting or refusing the application. Ifthe application is denied, the class 12 license shall continue in effect inaccordance with law.

(m) Class 13. Caterer license. A generallicense may be granted to any applicant who serves food as part of theiroperation for the sale of liquor (other than alcohol) while performing foodcatering functions off the premises.

No catering service for the sale of liquorshall be performed off the licensee's premises, unless prior written notice ofthe service has been delivered to the office of the liquor commission of thecounty concerned. The notice shall state the date, time, and location of theproposed event and shall include a written statement signed by the owner orrepresentative of the property that the function will be subject to the liquorlaws and to inspection by investigators.

(n) Class 14. Brewpub license. A brewpublicensee:

(1) Shall manufacture not more than ten thousandbarrels of malt beverages on the licensee's premises during the license year;

(2) May sell malt beverages manufactured on thelicensee's premises for consumption on the premises;

(3) May sell malt beverages manufactured by thelicensee in brewery-sealed packages to class 3 wholesale dealer licenseespursuant to conditions imposed by the county by ordinance or rule;

(4) May sell intoxicating liquor, purchased from aclass 1 manufacturer licensee, or a class 3 wholesale dealer licensee, toconsumers for consumption on the licensee's premises. The categories ofestablishments shall be as follows:

(A) A standard bar; or

(B) Premises in which live entertainment orrecorded music is provided. Facilities for dancing by the patrons may bepermitted as provided by commission rules;

(5) May sell malt beverages manufactured on thelicensee's premises to consumers in brewery-sealed kegs and growlers foroff-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 thelicensee's premises to consumers, in recyclable containers that may be providedby the licensee or by the consumer, not to exceed one gallon per container,which are securely sealed on the licensee's premises, for off-premisesconsumption;

(7) Shall comply with all regulations pertaining toclass 4 retail dealer licensees when engaging in the retail sale of maltbeverages; and

(8) May sell malt beverages manufactured on thelicensee's premises in brewery-sealed containers directly to class 2 restaurantlicensees, class 3 wholesale dealer licensees, class 4 retail dealer licensees,class 5 dispenser licensees, class 6 club licensees, class 8 transient vessellicensees, class 9 tour or cruise vessel licensees, class 10 special licensees,class 11 cabaret licensees, class 12 hotel licensees, class 13 catererlicensees, and class 15 condominium hotel licensees, pursuant to conditionsimposed by county regulations governing class 1 manufacturer licensees andclass 3 wholesale dealer licensees.

(o) Class 15. Condominium hotel license. Alicense to sell liquor in a condominium hotel shall authorize the licensee toprovide entertainment and dancing on the condominium hotel premises and to sellall liquor, except alcohol, for consumption on the premises; provided that acondominium hotel licensee, with commission approval, may provide off-premisescatering; provided further that the catering activity is directly related tothe 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 privateparties in areas that are the property of and contiguous to the condominiumhotel, are permitted with commission approval.

A condominium hotel licensee shall not sellliquor in the manner authorized by a class 4 retail [dealer] license.

Any licensee who would otherwise fall withinthe condominium hotel license class but holds a different class of license maybe required to apply for a condominium hotel license.

(p) Class 16. Winery license. A winerylicensee:

(1) Shall manufacture not more than ten thousandbarrels of wine on the licensee's premises during the license year;

(2) May sell wine manufactured on the licensee'spremises for consumption on the premises;

(3) May sell wine manufactured by the licensee inwinery-sealed packages to class 3 wholesale dealer licensees pursuant toconditions imposed by the county by ordinance or rule;

(4) May sell wine manufactured on the licensee'spremises to consumers in winery-sealed kegs and magnums for off-premisesconsumption; provided that for purposes of this paragraph, "magnum"means a glass container, not to exceed one half-gallon, which may be securelysealed;

(5) May sell wine manufactured on the licensee'spremises to consumers, in recyclable containers that may be provided by thelicensee or by the consumer, not to exceed one gallon per container, which aresecurely sealed on the licensee's premises, for off-premises consumption;

(6) Shall comply with all rules pertaining to class 4retail dealer licensees when engaging in the retail sale of wine; and

(7) May sell wine manufactured on the licensee'spremises in winery-sealed containers directly to class 2 restaurant licensees,class 3 wholesale dealer licensees, class 4 retail dealer licensees, class 5dispenser licensees, class 6 club licensees, class 8 transient vessellicensees, class 9 tour or cruise vessel licensees, class 10 special licensees,class 11 cabaret licensees, class 12 hotel licensees, class 13 catererlicensees, class 14 brewpub licensees, and class 15 condominium hotellicensees, pursuant to conditions imposed by county planning and public worksdepartments and rules governing class 3 wholesale dealer licensees.

(q) Restaurants, retailers, dispensers, clubs,cabarets, hotels, caterers, brewpubs, and condominium hotels licensed underclass 2, class 4, class 5, class 6, class 11, class 12, class 13, class 14, andclass 15 shall maintain at all times liquor liability insurance coverage in anamount of $1,000,000. Proof of coverage shall be kept on the premises andshall be made available for inspection by the commission at any time during thelicensee's regular business hours. In the event of a licensee's failure toobtain or maintain the required coverage, the commission shall refuse to issueor renew a license, or shall suspend or terminate the license as appropriate. No license shall be granted, reinstated, or renewed until after the requiredinsurance coverage is obtained.

(r) It shall be unlawful for any retaillicensee, except a class 10 licensee, to purchase, acquire, or sell liquor fromany person other than a wholesaler licensed pursuant to this chapter, except asotherwise provided in this section.

(s) Any provision to the contrarynotwithstanding, at the discretion of the county liquor commission, permissionmay be granted to a bona fide hotel, restaurant, or club licensed under class2, class 6, class 11, class 12, class 14, class 15, or class 16 to allow apatron to remove from the licensed premises any portion of wine that waspurchased for consumption with a meal; provided that it is recorked or resealedin its original container. This subsection applies only to a valid holder of aclass 2, class 6, class 11, class 12, class 14, class 15, or class 16 licenseengaged in meal service.

(t) Sections 281-57 to 281-60 shall not applyto classes 8 through 10 and 13. [L Sp 1933, c 40, §11; RL 1935, §2580; am L1935, c 105, §§6 to 8; am L 1937, c 211, §6; am L 1939, c 71, §§1, 2 and c 205,pt of §1; RL 1945, §7232; am L 1947, c 148, §1; am L 1955, c 263, §2; RL 1955,§159-30; am L 1961, c 89, §1 and c 90, §1; am L 1965, c 181, §1; am L 1967, c 172,§1; HRS §281-31; am L 1969, c 133, §1 and c 198, §1; am L 1970, c 5, §2; am L1976, c 87, §2; am L 1978, c 25, §1; am L 1980, c 199, §2; am L 1981, c 60, §1;am L 1982, c 183, §1; am L 1983, c 292, §1; am L 1984, c 269, §1; gen ch 1985;am L 1988, c 383, §3; am L 1990, c 171, §9; am L 1991, c 196, §1; am L 1994, c174, §2; am L 1995, c 38, §2; am L 1996, c 55, §1; am L 1997, c 57, §2; am L1998, c 75, §2; am L 1999, c 69, §1; am L 2001, c 55, §11; am L 2002, c 16, §12and c 49, §2; am L 2004, c 200, §1; am L 2005, c 145, §1; am L 2007, c 53, §§3,7; am L 2008, c 163, §1 and c 168, §5; am L 2009, c 177, §1 and c 184, §6]

Revision Note

"May 1, 2007," substituted for "the effectivedate of this Act".

Case Notes

Cited: 35 H. 788, 790.