Section 7.31. Surrender of licenses in certain cases

(a) A licensee whose licensed establishment is not in operation for 15-consecutive days shall return his license and, if a liquor licensee, his Wholesale Purchase Permit Cards, to the Board not later than the expiration of the 15-day period. The return of the license and card will not invalidate the license, which will be held in safekeeping for the benefit of the licensee and be available for his use when operations are resumed at the licensed premises, or for transfer.

(b) If the license is returned because the licensee no longer has a lease for the licensed premises, or removes therefrom, or is dispossessed by legal process, the license will be invalidated as to the premises for which issued but will not be invalidated generally nor cancelled, and will be held in safekeeping for the benefit of the licensee for transfer only.

(c) If the license and Wholesale Liquor Purchase Permit Cards are not surrendered and returned voluntarily by the licensee, authorized representatives of the Board will lift and return the license and card to the Board.

(d) A license surrendered to the Board, or a renewal thereof in possession of the Board, will not be held for the benefit of the licensee for a period exceeding 3 years from the date of surrender, or with regard to club licenses, for a period exceeding 2 years from the date of surrender, except as set forth in this section. Unless an application for transfer or request for reissue of the license from safekeeping is pending, failure of the licensee to reactivate the license and resume operation of the licensed business or to effect a transfer of the license within the 3-year or 2-year period shall result in revocation of the license. The Board will extend the period for an additional year if, at the end of the 3-year period, the licensed premises are unavailable due to fire, flood or other similar natural disaster. The safekeeping period for licenses other than club licenses may also be extended by the Board for successive 1 year periods upon a licensee’s written request and payment of the fee, as provided in section 474.1 of the Liquor Code (47 P. S. § 4-474.1), unless the license or licensee no longer meets the requirements of the Liquor Code or this title.

(e) To have a license reissued from safekeeping:

(1) An application for return of license shall be filed by the licensee.

(2) A fee of $50 shall accompany the application for return of license.

(3) When a background investigation is conducted to obtain or verify information regarding a reissuance of license from safekeeping, an additional fee of $100, for a total fee of $150, will be assessed.

The provisions of this § 7.31 adopted June 26, 1952; amended through October 30, 1968; amended July 8, 1977, effective July 9, 1977, 7 Pa.B. 1890; amended June 18, 1982, effective July 1, 1982, 12 Pa.B. 1860; amended March 12, 1993, effective March 13, 1993, 23 Pa.B. 1145; amended August 29, 1997, effective August 30, 1997, 27 Pa.B. 4432; amended November 12, 2004, effective November 13, 2004, 34 Pa.B. 6139; amended May 16, 2008, effective May 17, 2008, 38 Pa.B. 2250. Immediately preceding text appears at serial pages (307822) and (312243).

Notation

Authority

The provisions of this § 7.31 amended under section 207(i) of the Liquor Code (47 P. S. § 2-207(i)).

Notes of Decisions

Display

If you do not have a license to display, you have neither the privileges nor restrictions as a licensee who is operating under a liquor license. If you have neither the restrictions nor privileges, you cannot be charged with a violation of the Liquor Code. State Police v. D’Angio, Inc., t/a/d/b/a Sammy’s Hide-A-Way, 666 A.2d 1114 (Pa. Cmwlth. 1995); appeal denied 676 A.2d 1200 (Pa. 1966).

License

Licensee whose licensed establishment was not in operation for 15-consecutive days because of remodeling was obligated to return his liquor license to the LCB for safekeeping not later than the expiration of the 15 day period and placement of a license in safekeeping does not prevent expiration. Liquor Control Board v. Wayside Bar, Inc., 547 A.2d 1309 (Pa. Cmwlth. 1988).

Different rules for license reinstatement applicable to club and nonclub licenses which required club licenses to be revoked after the expiration of a 2-year safekeeping period, but which allowed nonclub licenses to be held in safekeeping indefinitely, were rationally based given the many real distinctions between club and nonclub licenses and not special legislation or violative of equal protection. Liquor Control Board v. SPA Athletic Club, 485 A.2d 732 (Pa. 1984).

The distinction between club licenses and other liquor licenses as apparent from 47 P. S. § 4-474 and 40 Pa. Code § 7.31 constitutes a violation of the constitutional prohibition against special class legislation in that a ‘‘relevant’’ distinction between the classes does not exist. In re George Pepperman Post No. 36 Serviceman’s Club, Inc., 73 Pa.D. & C.2d 524, 530 (1976).

Safekeeping

Once a liquor license is in safekeeping, operations under the license have ceased. By providing that the license ‘‘will be held in safekeeping for the benefit of the licensee and be available for his use when operations are resumed at the licensed premises, or for transfer,’’ shows that under this regulation, a license is not subject to being cited under the Liquor Code. By stating that the license is only available for use when operations are resumed, that language conversely indicates that when the license is held in safekeeping, the operations for which a liquor license is issued have, for intents and purposes, ceased. Because it only is available for use and not in use, operator is not subject to being charged with any violation of the Liquor Code. State Police v. D’Angio, Inc., t/a/d/b/a Sammy’s Hide-A-Way, 666 A.2d 1114 (Pa. Cmwlth. 1995).