These SLO County businesses broke COVID rules, ABC says. Could they lose alcohol licenses?
Two San Luis Obispo County businesses violated COVID-19 rules by allowing alcohol consumption on site in January, according to the California Department of Alcoholic Beverage Control, potentially putting them in danger of losing their alcohol licenses.
The state agency cited the local businesses as part of a statewide effort encouraging compliance of COVID-19 public health guidelines.
“Onsite operations” violations of public health orders were reported at Santa Maria Brewing Co. locations in Atascadero and Nipomo on Jan. 21, and at Iron Oaks Winery in Paso Robles on Jan. 22, according to the ABC.
Alcoholic Beverage Control citations occur after an agent visits a site and finds the establishment isn’t compliant with state public health orders at the time of the monitoring, ABC spokesman John Carr said.
When the violations at the San Luis Obispo County businesses were reported, a statewide stay-at-home order was in effect, requiring wineries to be closed and restaurants to offer takeout only. Santa Maria Brewing and Iron Oaks Winery were cited for “allowing alcohol consumption on the premises when the health orders at the time that the violations occurred did not allow for ‘on-site consumption,’ ” Carr said.
Carr said violations for both indoor and outdoor dining were noticed at both Santa Maria Brewing locations.
The ABC agents “did not physically write a criminal citation at the time they visited,” Carr added, but forwarded their findings to the San Luis Obispo County District’s Attorney’s Office in the form of complaints. That might result in the businesses being prosecuted on misdemeanor charges of violating emergency health orders, he added.
Eric Dobroth, San Luis Obispo County assistant district attorney, told The Tribune via email on Monday that the District Attorney’s Office has not yet “received any referrals for violation of the public health order from ABC” related to the SLO County allegations.”
Carr said that the reports were being sent to the District Attorney’s Office this week.
The stay-at-home order was lifted Jan. 25, a few days after the citations were issued. However, San Luis Obispo County remains in the purple tier of COVID-19 restrictions under California’s Blueprint for a Safer Economy, meaning restaurants, wineries and breweries are only allowed to now operate outdoors.
On Sunday, the restaurant and brewery’s Atascadero location announced a Super Bowl celebration, urging people to “Come in” and “Grab your spot for the game!”
Will Alcohol Beverage Control can revoke business licenses?
In addition to putting a business on probation, ABC has the power to suspend or revoke an alcohol license — a potentially devastating blow for any establishment serving wine or beer.
As of this week, no alcohol licenses have been suspended or revoked for the businesses cited in San Luis Obispo County, Carr said.
ABC prefers voluntary compliance over enforcement action, but it “will take enforcement action for egregious violations, and for businesses that refuse to comply with state health orders,” Carr said.
ABC penalties are decided separately from any criminal prosecution, Carr said, and range broadly in their severity. Probation means that a business could face additional disciplinary actions for repeat violations after an initial violation and sanction occurs.
Penalties depend on the track record of the business, and whether there have been multiple violations of the law, Carr added.
“Internally, ABC decides if it should move forward with an accusation,” Carr said. “There isn’t a set time on this decision, but the decision is made by ABC, not someone else.”
Could SLO County district attorney prosecute local businesses?
Dobroth said that it would seem logical for ABC to “exhaust administrative sanctions before referring a case for criminal prosecution.”
“I am not suggesting that a license should necessarily be suspended or revoked, but that the licensing agency has that degree of power, which far surpasses a criminal prosecution,” Dobroth said. “Incremental sanctions by ABC could include fines, restrictions on the license or even a brief suspension.”
Suspension of an alcohol license is “a significant sanction for a business whose life-blood may very well depend on alcohol sales — whereas a criminal prosecution provides for a $1,000 maximum fine,” Dobroth said.
In a December 2020 statement, county District Attorney Dan Dow said his office won’t criminalize businesses that bend the rules.
“Families and businesses in our county are struggling to keep their head above water and survive financially,” Dow wrote. “There is no sense in labeling a business owner or a business as a criminal for choosing to keep their business open in a manner that adequately protects their customers — who, by the way, are not being forced to enter their business.”
Santa Maria Brewing, Iron Oak Winery react to citation threats
Byron Moles, president of Santa Maria Brewing Co., said that his business had not received any written citation from ABC. The Santa Maria-based business has three locations, the two in SLO County and one in Santa Maria.
“We haven’t received anything from (the agency) but a phone call last month as a warning,” Moles said.
But ABC officials say an agent doesn’t necessarily provide a written document to the owner. Carr noted that “the agent may write up a report and forward the report to the local DA and the DA can determine whether to prosecute based on the agent’s report.”
“None of this is constitutional,” Moles said. “They are destroying the industry in California. So wrong. At this point we are just trying to not go out of business.”
Moles said he is aware of the county district attorney’s general position on prosecuting businesses that violate coronavirus-related regulations, so “we will pray it works out.”
Doug Burkett, owner of Iron Oaks Winery, said he had a “pleasant conversation” with ABC on Tuesday and plans to adhere to state’s purple tier guidelines.
“I had bills and the rest and government stimulus wasn’t going to save my business,” Burkett said. “I didn’t get a (Paycheck Protection Program) loan either.”
Burkett said that ABC informed him that he’ll need to comply with current coronavirus regulations, noting that he’s serving wine and food outdoors.
“We’ll just keep moving forward,” Burkett said. “I don’t think ABC was trying to ding us or anything and it was a good discussion.”
SLO County supervisors weigh in on warnings
Two San Luis Obispo County supervisors sent a letter dated Feb. 3 to California Gov. Gavin Newsom, saying that the ABC is issuing “official warnings to many SLO businesses” and urging Newsom to “safeguard their livelihoods as well as the thousands of jobs they create.”
Supervisors Debbie Arnold and John Peschong cited data from the California Restaurant Association, projecting an estimated 30% of California’s restaurants are at risk of closing permanently.
Arnold and Peschong also encouraged the governor to ensure that any actions against businesses based on “publicly available, scientific evidence that is consistently applied.”
“There is very little evidence that in-person service at these businesses is a significant contributor to the spread of COVID-19,” the letter states. “Indeed, the Superior Court in Los Angeles County issued an injunction overturning the ban on outdoor eating for being arbitrary and not based on scientific evidence. The Governor’s Health Secretary also conceded there is no empirical basis for the ban.”
“To take administrative action against licensees now will only further damage the industry and destroy the jobs of 1.4 million Californians,” the supervisors added. “These businesses and their employees have already suffered greatly as a result of COVID-19 restrictions and have worked to preserve their livelihoods while safely protecting their community.”
This story was originally published February 10, 2021 at 5:00 AM with the headline "These SLO County businesses broke COVID rules, ABC says. Could they lose alcohol licenses?."
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