Pennsylvania Code & Bulletin
COMMONWEALTH OF PENNSYLVANIA

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40 Pa. Code § 7.10. Conversion of suspension to fine.

§ 7.10. Conversion of suspension to fine.

 (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 instead 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 instead 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 0.50. The resulting figure is the amount of the fine per day of suspension, subject to the following exceptions:

   (1)  If the suspension was issued for a citation for which the minimum fine, if a fine had been imposed, is $50, a minimum fine of $1,000 per day will be set.

   (2)  If the suspension was issued for a citation for which the minimum fine, if a fine had been imposed, is $1,000, a minimum fine of $3,000 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.

Authority

   The provisions of this §  7.10 amended under section 207(i) of the Liquor Code (47 P. S. §  2-207(i)).

Source

   The provisions of this §  7.10 adopted November 12, 2004, effective November 13, 2004, 34 Pa.B. 6139; amended August 14, 2015, effective August 15, 2015, 45 Pa.B. 4761. Immediately preceding text appears at serial pages (307817) to (307818).

Cross References

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



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