California Code of Regulations › Title 4 - Business Regulations › Division 1 - Department of Alcoholic Beverage Control › Article 11 - Applications and Licenses › Section 57.7 - Qualifications of Bona Fide Public Eating Place Lessee

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Any
				bona fide public eating place licensee who elects to sublet the sale and
				service of meals, as provided for in Section
				23787, shall within fifteen (15)
				days of such subletting notify the department in writing and request the
				department to make a determination of the lessee's, or proposed lessee's,
				qualifications. Within thirty (30) days of such subletting, the licensee shall
				furnish the department with a copy of the agreement between the licensee and
				lessee, and shall produce the lessee at a district office of the department to
				have the lessee's fingerprints taken and to file an application for
				qualification as lessee. The lessee shall furnish information to the department
				necessary to establish whether he has the qualifications required of a holder
				of an alcoholic beverage license.
(b) Upon completion of its investigation
				pursuant to paragraph (a) of this rule, the department shall serve either
				Notice of Qualification of Lessee or Notice of Disqualification of Lessee on
				the lessee, and a copy of such notice shall be mailed to the licensee. Within
				fifteen (15) days after service of Notice of Disqualification of Lessee, the
				lessee may petition the department for hearing thereon. The Notice of
				Disqualification of Lessee shall advise the lessee of his right to a hearing as
				provided in Chapter 5 (commencing with Section
				11500) of Part 1, Division 3 of
				Title 2 of the Government Code, and upon petition for hearing the reasons set
				forth in the Notice of Disqualification of Lessee shall become the "Statement
				of Issues" as that term is used in Section
				11504 of
				the Government Code, and all provisions of said Section
				11504 applicable to "Statement of
				Issues" shall be applicable to said notice. In addition, all other provisions
				of Chapter 5 (commencing with Section
				11500) of Part 1, Division 3 of
				Title 2 of the Government Code, applicable to "Statement of Issues" and
				proceedings initiated thereby, shall be applicable to the Notice of
				Disqualification of Lessee and proceedings initiated by the filing of petition
				for hearing thereon.
(c) When the
				department determines that a lessee is disqualified and that determination
				becomes final as provided for by law, the department shall notify the licensee
				in writing that he has 60 days in which to rescind or otherwise terminate the
				agreement and resume, or sublet to a qualified person, the sales and service of
				meals as required by Section
				23038. The department may extend
				the above period for good cause. Failure to rescind the agreement within the
				prescribed period may be cause for disciplinary action by the department for
				the purpose of suspending or revoking the license. In any such disciplinary
				action, any findings of fact previously adopted by the department in connection
				with the lessee's qualifications shall be presumptive proof as to the issue of
				the lessee's qualifications.
(d) A
				licensee who has sublet the sale and service of meals as provided for in
				Section 23787 remains responsible for
				keeping the premises in compliance with Section
				23038 and may not exercise the
				privileges of the license unless the premises are equipped with suitable
				kitchen facilities, maintained in a sanitary condition, and regularly and in a
				bona fide manner used and kept open for the serving of meals to guests for
				compensation.
(e) A licensee who
				has sublet the sale and service of the meals required by Section
				23038 shall not also employ the
				lessee or his employees or agents to manage or direct the alcoholic beverage
				licensed business.
(f) Each license
				is issued to a specific person, and the privileges of such license are to be
				exercised by said person. A licensee who has sublet the sale and service of the
				meals required by Section
				23038 shall not permit the lessee
				to participate or share in revenues resulting from the exercise of privileges
				granted by the license.
1. New section
				  filed 7-12-72; designated effective 8-14-72 (Register 72, No. 29).
Note: Authority cited: Sections
					 23038,
					 23300,
					 23787
					 and
					 24040,
					 Business and Professions Code.