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Citzenship not questioned when owning business

By JON ERICSON, Courier Staff Writer

CEDAR FALLS --- While employment in Iowa requires proof of citizenship, opening a business in the state has no such safeguards.

Last week immigration agents served a warrant at Julio's Mexican Restaurant and Cantina and arrested 12 people for illegal immigration issues. Two of them, Juan Lopez and Martha Lopez-Angel, were part owners of the restaurant.

Lopez has been charged with failing to leave the United States following a criminal order. Martha Lopez-Angel was charged with inducing an alien to enter or reside in the United States illegally.

Opening a restaurant in Iowa requires a number of governmental forms be completed for licenses or permits. None will identify an applicant as an illegal immigrant.

The application for sales tax and corporate income taxes for Iowa businesses requires the applicants to give a Social Security number, but does not ask about residency or immigration status. An Iowa Department of Revenue spokesperson said the state doesn't check the Social Security numbers with the federal government.

"With all of the applications we receive and the number of Social Security numbers we would deal with, there is no way we could verify each one with the Social Security Administration," said Renee Mulvey.

In the Julio's case, immigration agents allegedly found copies of fraudulent Social Security cards and resident alien cards at the restaurant. In some cases the numbers on the cards were issued to different people, and one belonged to a deceased person.

No proof of citizenship is required to obtain a liquor license in Iowa. Business owners do not need to be United States residents to obtain such a license.

Iowa Alcoholic Beverages Division Director Lynn Walding said the state recognizes the global marketplace and allows foreign nationals to hold licenses in the state. However, a noncitizen cannot obtain a liquor license listed solely in their name. Instead, the business must be incorporated. Walding said that provision helps the division if it needs to contact the owner.

While citizenship is not necessary for a liquor license, a clean record is. Any proprietor can be fined or even lose the liquor license if they commit a crime, regardless of whether the crime is directly related to the sale of alcohol.

On the Julio's liquor license, Lopez is listed as well as co-owner Julio Zalapa, who is a U.S. citizen.

Lopez was the lone signee of Julio's articles of incorporation.

Citizenship is also not necessary for forming a corporation in Iowa. There is no requirement for proof of citizenship or submitting a Social Security number in the application for incorporation.

The federal I-9 form, which proves legal work status, is required for employment in the United States. But no such form exists for the business owner.

Tim Counts, a spokesperson for Immigration and Customs Enforcement, said he doesn't know of any federal documents required for business owners that would prove citizenship or legal alien status. If the business owner were considered an employee of the corporation, he would then have to submit identification as any employee would through the I-9 form.

Contact Jon Ericson at (319) 291-1402 or jonathan.ericson@wcfcourier.com.