An association that represents more than 100 bar owners says it is concerned that a proposed rule before the Honolulu Liquor Commission would give the city panel unlimited power and discretion to punish a liquor license holder.

The commission, however, argues that the rule would allow the panel greater flexibility to help a licensee or applicant and isn't intended to be punitive or be used to penalize a business.

The rule is one of 20 proposed amendments and new rules that will be discussed at a public hearing at 4 p.m. Tuesday at the commission office. The proposals are intended to address concerns of the commission, liquor industry and public by strengthening and clarifying existing rules, according to a public hearing notice.

Bill Comerford, spokesman for the Hawai'i Bar Owners Association, said he believes one of the rules, if approved, would be too broad and could wind up being used arbitrarily against an establishment. The new rule would authorize the five-member commission to "place restrictions or conditions on a license to protect the health, safety and welfare of the public."

Comerford said the rule does not set criteria for what could be considered a health and safety issue, nor does it specify the kind of sanctions that could be levied against a licensee. He said he believes the punishment could run the gamut, from fines, limits on operating hours, to license revocation.

"It's an attempt by them to be able to limit licensees for whatever reason they feel necessary," Comerford said. "For any excuse, they can choose what they want to do in the restrictions."

MORE FLEXIBILITY CITED

Comerford is a partner with E & J Lounge Operating Co., which operates Kelley O'Neil's, O'Toole's Irish Pub and the Irish Rose Saloon. The Hawai'i Bar Owners Association represents 105 establishments, he said.

Anna Hirai, assistant administrator for the Liquor Commission, disagreed with Comerford and said the rule is intended to give the panel greater flexibility during the licensing process that should benefit the applicant.

"Sometimes, it comes down to approve or deny and this gives them the ability to have some middle ground if there are some concerns from the community," Hirai said.

For example, she said, an applicant who wants an "entertainment category" license could face stiff opposition in some neighborhoods because the license would permit live entertainment until 2 a.m. Under the proposed rule, the license could be granted with special conditions, such as limitations on hours, that aren't currently allowed.

The rule also will allow the commission more options when a license holder is found in violation of liquor laws.

"It gives the commission something between imposing a fine or suspension or revocation," Hirai said. "Since both of those processes would be conditions or restrictions imposed at a hearing, we feel that the licensee or applicant will be afforded due process."

BASED ON MAUI RULE

The proposal is patterned after a Maui Liquor Control Commission rule, which Hirai said seems to be working. She added that all of the proposed amendments were reviewed by a city attorney and the state Small Business Regulatory Review Board.

Still, Comerford said he believes that if the rule is implemented, it would be another blow to bar owners and businesses that are struggling to survive. He said many bars and pubs already are suffering because of the statewide smoking ban that went into effect in November 2006.

He said sales at his bars have dropped 15 percent to 20 percent since then.

Comerford said another restrictive rule could lead bar owners to leave the business or discourage people from starting their own establishment. He said liquor laws already are difficult to comply with.

"It's not to say there's a problem with the Liquor Commission right now. But if in the future there was some Liquor Commission that says, 'I'm on my own agenda and I'm going to do as I please,' they'll rule against you on their own prejudices," Comerford said. "It's just one more barrier to doing business because it's open to interpretation."