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June 16, 2009

Liquor license suspension over for Alibi’s

One co-owner, Tom Gesualdo, said they decided to settle with the state to avoid what appears to be increased sanctions for bars that appeal the administrative law judge’s decision.

By Michael Schaffer - Managing editor

The seven day liquor license suspension the state imposed against Alibi's in Centerville for violating Iowa's Smokefree Air Act is over, having concluded June 7. The owners also paid a $1,000 penalty, besides losing up to $4,000 in business during the seven days the state suspended the bar’s license to sell alcohol.

Tom Gesualdo, who co-owns the bar with Terry Stober, said they decided to close the bar during the seven day suspension because a large majority of their revenue comes from liquor sales. Besides the monetary loss, he also said he could permanently lose some customers who decide to go elsewhere.

"It's not fair. There's nothing fair about this thing," Gesualdo said. "People need to get out there and vote and get rid of these idiots, is what we need to do."

The Smokefree Air Act was designed to curtail indoor smoking, with exceptions made for casinos, veterans' homes, correctional facilities and fairgrounds. However, since the law was passed, very few if any businesses other than bars or restaurants have been cited for violating the law.

A document found at the state's Alcoholic Beverages Division Web site list 72 total referred businesses in various stages of the Smokefree Air Act process. A cursory glance of the names involved appear to involve only bars, restaurants or veteran's organizations.

Gesualdo said bars that have appealed state imposed sanctions for violating the act have ended up worse for wear. He said one bar in Burlington ended up losing its liquor license for one year, which has led Gesualdo to believe the state is using liquor licenses as leverage against bars.

"Look at what it cost everybody else who complained — a 30 day suspension," Gesualdo said.

The same document shows nine businesses cited for violating the act that settled with the state and did not appeal received a seven day suspension and a $1,000 fine. Lynn Walding, state of Iowa Alcoholic Beverages Division administrator issued final orders suspending the liquor license for Fro's in Wilton for 30 days and revoking Otis Campbell's license in West Burlington after they both appealed the administrative law judge's proposed decision.

Currently, there are seven administrative law judge's proposed decisions on appeal to Walding, including Gordie's Bar & Grill in Centerville and two in Ottumwa. The sanctions the judge has proposed for those seven range from a liquor license revocation for the Veteran's of Foreign Wars in Ottumwa to a 21 day suspension for Otter Limits in Des Moines.

Bob Brammer, spokesman for the attorney general's office, said bars are required to follow the law and are where most of the violations come from.

"So liquor enforcement is one appropriate means since they are obligated to follow the law," Brammer said. "They have a specific sanction that could possibly hang over their heads if they are permitting violations."

Brammer said no state agencies are specifically targeting bars for Smokefree Air Act violations.

"Not us. We get involved in enforcement in certain levels if there needs to be an action brought up," Brammer said.

Matt Gannon, assistant attorney general, said the Smokefree Air Act prohibits smoking in "public places and enclosed areas within places of employment and a number of outdoor areas. As a general proposition, businesses that are located indoors are covered by the Smokefree Air Act."

He said sanctions against businesses other than bars include civil penalties.

"Most businesses in the state are subject to some form of license or permit," he said. "It's not just a liquor license it is subject to a penalty."

Gannon said he didn't know of any cases involving businesses other than bars cited for violating the Smokefree Air Act.

Walding said the law allows for injunctions against businesses not exempt from the act to curtail the activity. He said the law allows for civil penalties, where the first violation is $100, the second is $200, the third is $300 and each day is a separate violation.

Walding said his department has been asked to investigate other businesses besides bars for violating Iowa's Smokefree Air Act

"And we refer complaints to the Attorney General's Office and it's up to them to what to do with it," Walding said.

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This week the Iowegian wants readers to think about the recent decision by the Centerville Municipal Waterworks Board of Directors to increase the fee for late payment of water bills. In a story published in Wednesday's Ad Express, board members announced a 10 percent late fee after two days late, a $50 red tag fee for accounts unpaid after seven days late and a $25 shut off fee, water service terminated after two weeks late. The board said the decision to increase the fees associated with late payment is to encourage customers to pay their bills on time. So, the question this week is, "Are these fees too much to ask for?"

A. Yes, they are.
B. No, they are not.
C. I'm not affected so I don't care.
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