Tougher alcohol purchase rules on hold to consider ‘toasting’

Hawaii County Council members postponed a bill Wednesday that would strengthen restrictions on the purchase of alcohol after discussing whether certain ceremonial activities should be exempt.

Hilo Councilwoman Sue Lee Loy initially proposed changing the county code to specifically ban use of county funds to supply alcohol for “social or entertainment purposes.”

But some testifiers involved in the county’s sister city relationships and other council members expressed support for continuing to allow such purchases when toasting dignitaries.

Hilo Councilman Aaron Chung said that’s expected of county officials when visiting sister cities in Japan.

“It’s really hard, I think, to explain to people, ‘Sorry, this is a nonalcoholic event because we can’t spend money on alcohol. There will be no toasting except with water,’” he said.

Lee Loy offered an amendment during the Finance Committee meeting that would still allow alcohol purchases for sister city activities and visiting dignitaries, but later postponed both versions to consider other changes. She said she would bring another proposal at the next committee meeting Jan. 24.

Currently, the code leaves such purchases to the discretion of the mayor or council chairperson. Mayor Harry Kim, who says he doesn’t drink, and Council Chairwoman Valerie Poindexter issued their own policies prohibiting or further restricting alcohol purchases.

Because of the new policies, Chung said he was using between $300 and $700 of his own money to buy wine for an upcoming celebration of the county’s sister city relationship with Shibukawa, Japan.

Lee Loy said she wanted to amend the code since policies can be easily changed.

“That’s what I’m trying to get to,” she said, “a stable framework the public can trust.”

The proposal is in response to former Mayor Billy Kenoi’s use of a county purchasing card for what state prosecutors called “exorbitant amounts of alcohol.” Kenoi was charged with theft and other charges that mainly related to large liquor and beer purchases with county funds.

Kenoi, who authorized his own alcohol purchases, maintained they were for legitimate county business and within his discretion as mayor. He was found not guilty.

Bonnie Nims, the county’s legislative auditor, noted council members could use their own money to purchase alcohol during sister city trips. She said she recommended during an audit of the county’s pCard policies that the council amend the code to ban all alcohol purchases.

“Whenever you have exemptions, people find wiggle room,” Nims said.

The audit came in response to local newspaper reports of Kenoi using his pCard at a Honolulu hostess bar.

Maui and Kauai counties prohibit public funds from being used to purchase alcohol.

Since taking office last month, Kim issued a new policy for the administration prohibiting alcohol purchases. The only exemption is for the Police Department, which uses alcohol for training new officers when and how to issue sobriety tests. Deputy Finance Director Deanna Sako told the council the alcohol is consumed by volunteers, not the recruits.

Poindexter said she issued a memo to the legislative branch, which includes the council and its staff, last month saying she will not authorize any purchase of alcohol with county funds.

But she said after the meeting that she also is considering providing an exemption for sister city celebrations with a dollar limit. Poindexter said she will meet with Nims to discuss the idea and whether it’s appropriate.

Email Tom Callis at tcallis@hawaiitribune-herald.com.