2020-02-20 Liquor Adjudication Board Minutes

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Smith: Any opposition? There was no opposition by the Board Members. Smith: Hearing none, the motion carried unanimously. Thank you very much. The motion was carried unanimously. Smith: Mr. Gonzalez, please provide the Department's recommendation for penalty in the case. Gonzalez: The Department is recommending a $1,000 fine. The rationale for the recommendation is that the Licensee has a prior violation from 2019 for unlicensed liquor where they were fined $1,000. They have a record. Additionally, as of January 1, 2020, the premises has closed for business. They were evicted by their landlord. They've had issues in the past and the Department has been working with them as they were trying to get up to date with their State tax clearances, and also for money owing to their suppliers and wholesalers. We're not asking for the $2,000 fine at this point, because of the $2,791.68 that was due on November 15th, they paid $500 towards that on January 13, 2020. They still owe us $2,291.68 to date. The Department has prioritized getting the percentage fee paid to it higher than collecting the fine. Also, making sure that once they pay us our percentage fee, they actually pay the debts they owe to the other businesses and their suppliers. That's also in the rationale for the $1,000 fine. The Licensee is no longer operating; they're closed. I'm open to any other questions. Taniguchi: What happens, do they still have to follow the rest of the rules? What happens to the inventory, and does that have to be reported? Gonzalez: Yes, and as part of the closing, they have to submit documents, meaning the inventory and what's happening to it. Then, they have to submit other closing documents like the sales up to the point of closing so that we can calculate what they owe as well. Taniguchi: So, in the event that these amounts aren't paid, does that exclude the Licensee from coming back to apply for another license? Gonzalez: It will definitely factor into a Liquor Commission's decision on whether the individual is fit to have a license. It also has an impact on the current liquor license that hasn't been exactly cancelled yet. The license can't be sold or transferred because there are pending violations on it. It cannot be transferred until all of these matters with the Department are cleared up. There has been one inquiry from someone for the space, saying they wanted to take over the space and open a restaurant in there. We had to notify them that the space won't come with the liquor license until certain matters are taken care of. Taniguchi: Thank you. Smith: I had a question. I think it's admirable that you try to make sure that this company that's gone out of business pays its vendors and everything. How do you encourage them to do that? FEBRUARY 20, 2020 -LIQUOR ADJUDICATION BOARD MINUTES 18