Maui Liquor Commission Violated Sunshine Act, Appeals Court Rules

KAHULUI—The Intermediate Court of Appeals unanimously concluded Maui’s Liquor Control Commission violated the Sunshine Act when it attempted to change its rules in 2017 when it purported to allow 24 hour a day liquor sales and removed the cap on hostess bars.

The Committee for Responsible Liquor Control and Kihei resident Madge Schaefer filed suit against Maui’s Liquor Commission and the Liquor Department in response to the lack of notice provided the public for the changes to the rules. The lawsuit also challenged the Department’s change in policy requiring onerous background checks for non-profits to hold one day fundraising events, according to a press release from Maui based attorney Lance D. Collins.

While the litigation was pending, the Commission repealed the rule changes while keeping several others. Former Circuit Court Judge Rhonda Loo ruled the case was moot and dismissed it. The Plaintiffs thereafter appealed Judge Loo’s ruling to the Intermediate Court of Appeals.

In reversing Judge Loo, the appeals court ruled Monday the Liquor Commission’s public notice of the rule changes did not comply with the plain language of the Sunshine Act nor with the Hawai’i Administrative Procedures Act requirements for giving the public notice of the proposed rule changes. Because the legislature subsequently amended the law in 2018 regarding one day fundraising events prohibiting the Commission from implementing its onerous policy, the appeals court ruled that issue was now moot.

“The Sunshine Act was enacted to protect the public’s right to know how the formation and conduct of public policy occurs. Without this important information, democracy is turned into a caricature of its great purpose,” said Collins.