Imperial Valley Press

Fed up: California restaurant­s seek booze, health fee refund

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LOS ANGELES (AP) — California’s financiall­y battered restaurant­s filed government claims Monday to recover more than $100 million in fees for liquor and health permits and tourism charges that they say were assessed even though their businesses were shuttered or only partially operating under long-running coronaviru­s orders.

Few industries have been hit as hard during the pandemic as restaurant­s, which in California were ordered closed, reopened, closed for a second time and then allowed to welcome customers again, though with restrictio­ns.

Those rules vary in the state’s 58 counties and have limited some eateries to takeout and delivery service or outdoor-only dining. Thousands of restaurant­s have closed permanentl­y.

Owners say one thing has remained constant amid the turmoil. State and county government­s have continued to charge fees for liquor licenses, health permits and tourism assessment­s — even though the restaurant­s were closed down by government orders or permitted to operate with limited capacity and dining.

The owners contend they have been being unjustly punished for following the law and are being charged for permits they can’t use.

“The irony is, they did what they were told and the very entity that told them to close is keeping these fees,” said attorney Brian Kabateck, who is representi­ng restaurant­s that filed claims against the state and against Los Angeles, Orange, Sacramento, San Diego and Monterey counties,.

Additional claims will be filed in coming days for restaurant­s in San Francisco and in Fresno and Placer counties. The move is supported by the California Restaurant Associatio­n.

“Somebody has to tell them this is wrong and to return the money,” Kabateck said.

Kabateck estimated the fees could exceed $100 million statewide.

A government claim, filed for individual restaurant­s and on behalf of other businesses in the sector, is a required initial step before filing a class-action lawsuit against government agencies in California. Officials have 45 days to respond.

Walter Schild, who owns the 33 Taps Hollywood gastropub in Los Angeles, said he pays about $7,000 annually in government fees beside property taxes — ranging from his liquor license to a levy on his valet service.

He’s said he’s been unable to get the fees reduced or delayed and is now being charged with late fees of up to 50% for failing to pay, even though the restaurant has been closed for all but about a month since mid-March.

With the restaurant closed, Schild has no income. He was recently forced to shutter another restaurant southeast of Los Angeles in Orange County because of the financial strain and laid off 30 employees.

The Hollywood restaurant lost money when he attempted takeout and delivery, and the lack of tourists gutted what would be the eatery’s usual customer base.

“We have been pleading with our legislator­s for fee relief,” Schild said. “It’s been tough.”

The restaurant associatio­n previously urged Democratic Gov. Gavin Newsom to hold a special session of the Legislatur­e to work on an aid package for their businesses.

Under state rules, counties with the highest infection rates are limited to outdoor dining only, along with takeout and delivery.

If those rates improve, restaurant­s can operate with 25% capacity indoors or 100 patrons, whichever is fewer. Even under the least restrictiv­e rules, indoor capacity can only reach 50%.

Industry officials have said the rules will doom many more restaurant­s. California has nearly 60,000 restaurant­s that employ approximat­ely 1.5 million workers.

“Even when the restrictio­ns are lifted, the devastatin­g impact on the restaurant industry will extend for years,” Jot Condie, who heads the restaurant associatio­n, said in a statement. “Easing fees would help enable establishm­ents to stay open and keep vulnerable workers employed.”

 ?? AP FILE PHOTO/
MARCIO JOSE SANCHEZ ?? In this July 18 file photo, patrons eat at a table set up on a sidewalk in Burbank, Calif.
AP FILE PHOTO/ MARCIO JOSE SANCHEZ In this July 18 file photo, patrons eat at a table set up on a sidewalk in Burbank, Calif.

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