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PA Bulletin, Doc. No. 15-2005

RULES AND REGULATIONS

LIQUOR CONTROL BOARD

[ 40 PA. CODE CH. 7 ]

Right to Occupy

[45 Pa.B. 6595]
[Saturday, November 14, 2015]

 The Liquor Control Board (Board), under the authority of section 207(i) of the Liquor Code (47 P. S. § 2-207(i)), amends §§ 7.2 and 7.4 (relating to transfers of ownership; and transfers of ownership and location).

Summary

 The Board's regulations require an applicant to establish its right to occupy the proposed licensed premises. While this is typically done through a lease or deed, some entities have acquired the right to occupy a premises through a contract between it and the owner of the premises. Sections 7.2 and 7.4 are amended to reflect the fact that the right to occupy may be obtained through a means other than a lease or deed.

 The principal beneficiaries will be those entities involved in the ownership and operation of hotels. Management companies typically operate a chain of hotels under a common name on behalf of different real estate holders. However, they typically occupy the premises under a management agreement with the real estate owner rather than with a deed or lease. Since §§  7.2 and 7.4 contem- plate that the licensee will have a lease or deed to the premises, the real estate owner typically applies for the license in its name and list the actual operator of the hotel as a management company.

 Allowing the management agreement to be the basis for the hotel operator's proof that it has the right to occupy the premises will allow the management company to apply for the liquor license in its own name and would be more consistent with the parties' desired business relationship.

Affected Parties

 Affected parties include future applicants for a liquor license whose right to occupy the proposed licensed premises is based on something other than a deed or lease.

Paperwork Requirements

 The final-form rulemaking will not require additional paperwork to be filed.

Fiscal Impact

 This final-form rulemaking may result in a hotel operator applying for a liquor license in its own name, rather than being listed as the management company for a different applicant. In those circumstances, there would not be a need to have a management company and the license would save itself the $350 fee that is required when a licensee uses a management company.

Effective Date

 This final-form rulemaking will become effective upon publication in the Pennsylvania Bulletin.

Public Comments

 Comments should be addressed to Rodrigo Diaz, Executive Deputy Chief Counsel, or Norina Blynn, Assistant Counsel, Office of Chief Counsel, Liquor Control Board, Room 401, Northwest Office Building, Harrisburg, PA 17124-0001.

Regulatory Review

 Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on May 5, 2015, the Board submitted a copy of the notice of proposed rulemaking, published at 45 Pa.B. 2614 (May 30, 2015), to the Independent Regulatory Review Commission (IRRC) and the Chairpersons of the House Liquor Control Committee and Senate Committee on Law and Justice for review and comment.

 Under section 5(c) of the Regulatory Review Act, the Board is required to provide IRRC and the House and Senate Committees with copies of the comments received during the public comment period, as well as other documents when requested. The Board received comments from IRRC, the response to which is set forth in a separate document.

 Under section 5.1(j.2) of the Regulatory Review Act (71 P. S. § 745.5a(j.2)), on October 7, 2015, the final-form rulemaking was deemed approved by the House and Senate Committees. Under section 5.1(e) of the Regulatory Review Act, IRRC met on October 8, 2015, and approved the final-form rulemaking.

Findings

 The Board finds that:

 (1) Public notice of intention to adopt the administrative amendments adopted by this order has been given under sections 201 and 202 of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. §§ 1201 and 1202) and the regulations thereunder, 1 Pa. Code §§ 7.1 and 7.2.

 (2) The amendments to the Board's regulations in the manner provided in this order are necessary and appropriate for the administration of the Liquor Code.

Order

 The Board, acting under the authorizing statute, orders that:

 (a) The regulations of the Board, 40 Pa. Code Chapter 7, are amended by amending §§ 7.2 and 7.4 to read as set forth at 45 Pa.B. 2614.

 (b) The Board shall certify this order and 45 Pa.B. 2614 and deposit them with the Legislative Reference Bureau as required by law.

 (c) This order shall become effective upon publication in the Pennsylvania Bulletin.

TIM HOLDEN, 
Chairperson

 (Editor's Note: For the text of the order of the Independent Regulatory Review Commission relating to this document, see 45 Pa.B. 6374 (October 24, 2015).)

 Fiscal Note: Fiscal Note 54-84 remains valid for the final adoption of the subject regulations.

[Pa.B. Doc. No. 15-2005. Filed for public inspection November 13, 2015, 9:00 a.m.]


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