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Lindsey: Counsel, would you please give us the recommendation? <br /> Schoen: Yes, Mr. Chair. This is the same Licensee that we just discussed. The date <br /> of the issuance of the license was January 8, 2016. The Department is recommending <br /> a $2,000 fine and that they pay the percentage fee of$1,860 that still remains <br /> outstanding. The fine represents the apparent disregard of the applicable laws and <br /> rules. We are asking that they pay the $3,860 within 30 days receipt of written Decision <br /> and Order. Failure to pay that will subject them to additional separate penalties <br /> including an Order to Show Cause to show fitness to hold a liquor license. <br /> Lindsey: Chair will now entertain a discussion. <br /> Fuke: I was surprised because their total gross sales were over $2 million. Is that <br /> correct? <br /> Takase: No, that must be a typo. <br /> Schoen: $212,581 from July 2016 through December 2016. <br /> Fuke: I'm looking at the October 14, 2016 letter. It says the TFGS, Total Final Gross <br /> Sales, prior license year was $202 million? <br /> Takase: No, that's for all the Licensees. Their total gross sales for the year were <br /> $235,000. <br /> Fuke: Of the $202 million? <br /> Takase: Yes. If you look at this formula, that's how we calculate their percentage fees <br /> due. "EE" is the Departments expenditures. We take that minus out the basic fees <br /> we've collected in the year and the carry-over we had. We minus that from our <br /> expenditures and divide our expenditures by the total gross sales. It gives each <br /> Licensee a percentage total. Last year, the percentage fee worked out to .0079 <br /> percent, under one percent. Based on their reported sales of$235,000, their share is <br /> $1,860 for the year and that's how we generate our funds. <br /> Lindsey: Are there any more questions? <br /> R. Smith: Renee, I had a question. It seems like this is a problem Licensee at <br /> numerous locations. Is this an indication that they're going out of business? <br /> Takase: They're doing a good business; I don't know that they're going out. They have <br /> poor management, but it's really poor ownership. We have been dealing with the owner <br /> and every time we've notified him he says he's going to take care of it but there's no <br /> follow though. That's the reason for such a high fine. We've given him lots of chances. <br /> We need to get his attention. <br /> APRIL 20, 2017— LIQUOR ADJUDICATION BOARD MINUTES 23 <br />