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SACRAMENTO (CBS13) – A popular downtown bar closed Wednesday after its liquor license was suspended for 10 days.
The owners of the Shady Lady said business has been great, but a paperwork mix-up led the state Alcoholic Beverage Control to prohibit the sale of booze until May 20.
One of the owners, Jason Boggs, said he’s been explaining to customer that the business wasn’t tagged for any crimes, such as selling alcohol to minors, but simply goofed when it changed from a partnership to a corporation and failed to notify state officials.
“It was our fault, we didn’t realize it was something we had to do until it was too late,” Boggs said.
ABC spokesperson John Carr said businesses must notify the commission whenever their status as a corporation changes or if a name change occurs.
State officials also put the bar and restaurant on probation for 2 years because one of the original owners plead guilty to possession of a controlled substance, Carr added.
“There are laws in the Alcoholic Beverage Control Act that the owner of a business that sells alcohol cannot be involved in a crime of moral turpitude,” he said.
The Shady Lady owners did not comment on the drug possession charge, but authorities said the alleged crime did not occur at the business.
The bar is planning to renovate the business while it’s closed.