Subchapter A. TRANSFER OF LICENSES

§ 7.1. Filing of applications for transfer.

 Licenses issued by the Board, under Article IV of the Liquor Code (47 P. S. § §  4-401—4-498), may be transferred in accordance with this subchapter. Applications for transfer of licenses may be filed at any time, but when filed within 30 days of the expiration date of the license term, the transfer applies to the renewal license only, except in the case of death. Applications for transfer shall be made on the regular transfer form, which shall be accompanied by the application for license and remittance of proper fees in accordance with the applicable provisions of section 614-A of The Administrative Code of 1929 (71 P. S. §  240.14A).

 Where an application is filed for transfer of a license from one person to another at the same address, a bill of sale of the business or fixtures shall be executed by the licensee and shall be exhibited to the Board or its representative. The purchase price of the business, either in the form of cash or legal obligation as security for the purchase price, shall be placed in escrow with an attorney or financial institution, to be paid to the original licensee upon the approval of the transfer by the Board. The actual transfer of ownership of the business may not pass until approval of the transfer of license has been given. The transferee shall exhibit a deed or lease for the premises, or bill of sale, or both, as the case may be. The license may not change hands until the license transfer has been approved by the Board and the original licensee may continue the operation of the business and may sell liquor or malt or brewed beverages until formal approval of the transfer is given. If the original licensee does not continue operation of the business under the license, no liquor or malt or brewed beverages may be sold and the license shall be surrendered to the Board until the transfer is approved.

 (a)  Retail liquor or retail dispenser licenses. If a retail liquor or retail dispenser licensee moves his place of business from one address to another, the new establishment must be ready for operation before the license transfer will be approved. Liquor or malt or brewed beverages may not be sold or served at the new establishment until formal approval of the transfer is given by the Board.

 (b)  Other transferable licenses. When other licenses transferable under the law are involved, and the licensee desires to move his place of business from one address to another, proper application for transfer of license shall be made, and approval of the Board obtained, before the business is operated at the new address.

 (c)  Effect of failure to achieve full compliance. If a request for the transfer of a license has received prior approval by the Board, and thereafter, a licensee is unable to achieve full compliance based on the plans submitted under prior approval, a hearing may be held.

   (1)  The hearing will take evidence to determine whether full compliance with the licensee’s plans was impossible for reasons outside the licensee’s control.

   (2)  If it was, an application for transfer to another location will be considered by the Board.

 (d)  If a prior approval for transfer was originally granted for transfer to a different municipality, the 5-year moratorium on a transfer from the municipality to which the transfer was effected is measured from the date the license becomes operational. See section 461(a) of the Liquor Code (47 P. S. §  4-461(a)).

 When a transfer involves a change of both location and ownership, the new establishment, if retail liquor or retail dispenser, shall be ready for operation before the license transfer will be approved. The new applicant shall satisfy the Board that he is the owner or lessee of the premises, the fixtures and equipment therein. Liquor or malt or brewed beverages may not be sold by the applicant until the transfer of the license has been approved. The transferor, provided his fixtures and equipment are not involved in the transfer, may continue to operate at his original place of business until notified that the transfer of the license to the applicant has been approved, at which time the license and Wholesale Purchase Permit Card, if any, shall be surrendered by the transferor to the Board.

 On the death of the licensee, the license may be transferred immediately to the surviving spouse or to the decedent’s estate upon presentation of the transfer form, application, filing fee, and short form certificate from the registrar of wills. If it is desired to transfer the license to a person designated by and acting for the administrator or executor, the transfer application and fee, with written evidence of the designation, shall be submitted by the administrator or executor. The Board shall be notified in writing within 30 days of the death of a licensee.

   The provisions of this §  7.5 amended under section 207(i) of the Liquor Code (47 P. S. §  2-207(i)).

 If one or more partners voluntarily retire, an application for correction of license shall be executed and filed by all the partners, including the retiring partner. In the case of death of a partner, the application for correction of license shall be executed and filed by the surviving partners, and by the administrator or executor of the estate of the deceased partner, if any, and be accompanied by a short form certificate from the registrar of wills. If there is no administrator or executor, the application for correction of license shall be executed and filed by the surviving partners together with documentary evidence of the death of the deceased partner. These requirements also apply if the license is held jointly by husband and wife. Applications for correction of a license under this section shall be accompanied by the proper fee in accordance with the applicable provisions of section 614-A of The Administrative Code of 1929 (71 P. S. §  240.14A).

 (a)  Immediately upon the approval of a transfer of license, the Board will authorize the transferee to engage in lawful activity permitted by the license for a period of 30 days. The authorization will be in writing.

 (b)  During the interim, the original license and Wholesale Purchase Permit Cards shall be returned to the Board.

 Applicants for new licenses or for transfer of location of existing licenses shall submit floor plans with the application depicting all areas to be licensed. Floor plans are required for existing structures, as well as for structures proposed for construction and are to depict room dimensions. Floor plans shall be reproduced on paper and are not to exceed 8 1/2 by 11 inches. A separate floor plan is required for each floor used in conjunction with the licensed business.

   The provisions of this §  7.8 adopted January 19, 2001, effective January 20, 2001, 31 Pa.B. 430.

 Applicants for new licenses or for transfer of location of existing licenses shall submit site plans when the structure the applicant intends to occupy has not been constructed at the time the application is filed with the Board. Site plans shall be reproduced on paper in an 8 1/2 by 11-inch format and shall depict the location of the proposed licensed premises in relation to identifiable property lines or easily identifiable landmarks or reference points with measurements to the property lines, landmarks or reference points.

   The provisions of this §  7.9 adopted January 19, 2001, effective January 20, 2001, 31 Pa.B. 430.

 (a)  When a license application for transfer is pending and the transferor has an outstanding license suspension imposed by the Office of Administrative Law Judge that has not yet been served and cannot be served because the premises is not in operation, the transferee shall either serve the suspension upon the approval of the transfer, or request that the suspension be converted to a fine to be paid by the transferee upon the approval of the transfer.

 (b)  If the transferee prefers to pay a fine in lieu of serving a suspension, it shall make a request to the Office of Chief Counsel that a fine be set by the Board.

 (c)  For purposes of making a determination as to the amount of the fine, the transferee’s request to the Office of Chief Counsel shall include the following:

   (1)  A letter requesting that a fine be set in lieu of the suspension.

   (2)  A statement that the transferor cannot serve the suspension because the premises is not in operation.

   (3)  The transferor’s Federal tax return for its last year of operation, showing the licensed business’s profit or loss.

   (4)  The number of days the transferor was open in its last year of operation.

   (5)  A copy of the administrative law judge’s adjudication and order that resulted in the suspension. This document is obtainable from the Office of Administrative Law Judge.

 (d)  The fine will be calculated by application of the following formula: Gross earnings of the transferor divided by 365 (or the number of days in operation in the transferor’s last year of operation) multiplied by .50. The resulting figure is the amount of the fine per day of suspension, subject to the following exceptions:

   (1)  If the amount is less than $100 per day, a fine of $100 per day will be set.

   (2)  If the suspension was issued for a citation that required a minimum fine amount of $1,000 per day, a minimum fine of $1,000 per day will be set.

 (e)  The Board may set a fine in the absence of one or more of the documents described in subsection (c)(1)—(5). The Office of Chief Counsel may request additional financial documents.

 (f)  The Board will act on the request by accepting the request and setting the amount of the fine, or rejecting the request, or making a counteroffer and informing the transferee of its decision in writing.

 (g)  If the transferee rejects the Board’s decision, the original suspension will remain in effect, to be served by the transferee if the transfer is approved.

 (h)  If after the Board approves a conversion to a fine, the transfer application is denied, the Board’s decision regarding the suspension conversion to a fine is rendered a nullity and the unserved suspension remains in effect for the transferor.

   The provisions of this §  7.10 adopted November 12, 2004, effective November 13, 2004, 34 Pa.B. 6139.

   This section cited in 40 Pa. Code §  15.62 (relating to suspensions and revocations).