§ 57.7. Qualifications of Bona Fide Public Eating Place Lessee.

(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.

HISTORY

1. New section filed 7-12-72; designated effective 8-14-72 (Register 72, No. 29).

Note

Note: Authority cited: Sections 23038, 23300, 23787 and 24040, Business and Professions Code.