Section 14 - Meaning of 'supply of alcohol'

54.     This section defines for the purposes of Part 3 the 'supply of alcohol' as sale by retail or the supply by or on behalf of a club to its members (see paragraph 27 above).

Section 15 - Meaning of 'designated premises supervisor'

55.     This section defines the term 'designated premises supervisor' as the individual who is specified in a premises licence as fulfilling the role of 'premises supervisor' for those premises. A 'designated premises supervisor' is required in every case where the premises licence authorises the supply of alcohol, and no supply of alcohol may be made on the premises unless there is a designated premises supervisor in possession of a personal licence (see section 19).

Section 16 - Applicant for premises licence

56.     This section lists the categories of persons who may apply for a premises licence in respect of any premises. The principal category is anyone who carries on or proposes to carry on a business involving licensable activities on the premises. This will cover any individual (aged at least 18) or business which wishes to carry on, on a commercial basis, the sale of alcohol, the supply of alcohol by a club, or the provision of regulated entertainment (see Schedule 1) or of late night refreshment (see Schedule 2).

57.     The section also provides that the following may apply for a premises licence: a person exercising a statutory function (for example, a local authority); a person exercising any function by virtue of the Royal prerogative (for example, a body exercising functions by virtue of a royal charter); recognised clubs (see note on Part 4); charities; educational institutions; health bodies in the public and private sector; the police; and any other category of person prescribed in regulations made by the Secretary of State.

Section 17 - Application for a premises licence

58.     Subsections (1) to (3) provide that applications for a premises licence should be made, in the form prescribed in regulations made by the Secretary of State, to the relevant licensing authority, and must be accompanied by an operating schedule, a plan of the premises and (if the application proposes that the licence will authorise the supply of alcohol) a form containing the consent of the individual whom it is proposed will be specified in the licence as the designated premises supervisor.

59.     Subsection (4) provides that the operating schedule must set out various details relating to the operation of the premises when carrying on licensable activities, including the licensable activities to be carried out, the proposed hours of opening etc, the duration of the licence (if it is to have a fixed term), details about the individual (if any) who is to act as the designated premises supervisor, details of whether alcohol is to be supplied (if at all) for on-sales, off-sales or both, and a statement of how the applicant intends to promote the licensing objectives (for instance, the arrangements to be put in place to prevent crime and disorder, such as door security). The significance of the operating schedule is that if the application for the premises licence is approved, it will be incorporated into the licence itself and will set out the permitted activities and the limitations on them. As a consequence, it is the applicant who will decide, subject to the determination of applications by the authority, the nature and the extent of the activities and the conditions relating to the carrying on of the activities.

60.     Subsection (5) provides that the Secretary of State must make regulations setting out how applications are to be advertised, and specifying when interested parties and responsible authorities can make representations to the authority.

Section 18 - Determination of application for premises licence

61.     Subsections (1) and (2) provide that unless relevant representations are made in respect of an application for a premises licence, a licensing authority will be required to grant a licence in accordance with the application if it is duly made. That licence will be subject to conditions consistent with those listed by the applicant in the operating schedule, and subject to the mandatory conditions set out in sections 19, 20 and 21.

62.     Subsection (3), together with subsections (6) to (8), provides that where relevant representations are made, licensing authorities are required to hold a hearing. In order for representations to be 'relevant' they must have been made by an interested party or a responsible authority (see the definitions in section 13, paragraph 53 above) and they must relate to the likely effect of the grant of the licence on the promotion of the licensing objectives. Representation relating to the identity of the premises supervisor may only be made by the police (see subsections (6)(c) and (9)) and must meet the requirements of subsection (9)(b). If the representations are made by an interested party there is a further requirement that the licensing authority does not consider them to be frivolous or vexatious. If it does the authority is to explain its decision to the person who made the representations.

63.     The need for a hearing can be dispensed with by agreement of the authority, the applicant for the licence and all of the parties who have made relevant representations.

64.     Subsection (4) provides that when a hearing is held (or dispensed with as indicated above), the licensing authority must, if it considers it necessary for the promotion of the licensing objectives, attach conditions to any licence granted, rule out any of the licensable activities applied for, refuse to specify a premises supervisor, or reject the application. For example, a licensing authority might decide to remove the playing of amplified recorded music after 11pm from the scope of the licence applied for by a tenant of a pub in the middle of a quiet residential area, or it might prohibit the admittance of under-18s to premises where adult entertainment is provided. If the authority takes the view that none of the foregoing steps is required to promote the licensing objectives it must grant the licence in the terms sought by the applicant.

65.     Subsection (10) provides that a licensing authority may, within the same licence, impose different conditions on different parts of the premises, or impose different conditions in relation to different licensable activities.

Section 19 - Mandatory conditions where licence authorises supply of alcohol

66.     By virtue of this section some conditions are mandatory in respect of premises licences. The licensing authority will be required to attach to any premises licence authorising the supply of alcohol the conditions that at any time when such supplies under the premises licence are made

• there must be a 'designated premises supervisor' who is the holder of a valid personal licence, and

• every supply of alcohol under the premises licence must be made by a personal licence holder (although not necessarily by the designated premises supervisor) or an individual authorised by a personal licence holder.

Section 20 - Mandatory condition: exhibition of films

67.     Where a premises licence authorises the exhibition of a film this section makes it mandatory for a condition to be included in the premises licence requiring the admission of children to films to be restricted in accordance with recommendations given either by a body designated under section 4 of the Video Recordings Act 1984 or by the licensing authority itself. When the Act was passed the only body designated under section 4 of the Video Recordings Act 1984 was the British Board of Film Classification.

Section 21 - Mandatory condition: door supervision

68.     This section applies where the provision of door supervision is a requirement of the premises licence. It requires the licence to provide that anyone carrying out such a security function must be licensed by the Security Industry Authority established under the Private Security Industry Act 2001. Subsection (2) specifies some exceptions to this requirement (e.g. theatres). The provisions of the Private Security Industry Act 2001 are amended by paragraph 118 of Schedule 6 to the Act.

Section 22 - Prohibited conditions: plays

69.     Under this section, in the case of any premises licence authorising the performance of a play (see Schedule 1), licensing authorities will not be able to attach conditions relating to the nature of the play performed or the manner of its performance, unless they are justified as a matter of public safety. This section reproduces for England and Wales the effect of section 1(2) of the Theatres Act 1968.

Section 23 - Grant or rejection of application

70.     A licensing authority which grants or refuses a premises licence is required through this section to notify its decision to the applicant, to any person who made relevant representations and to the chief officer of police for the relevant area. If the application is granted, the licensing authority must also notify those parties of any steps it took in response to relevant representations and its reasons for taking or not taking the steps available. It must issue the licence and a summary of it to the applicant. If the application is rejected, the licensing authority must notify those parties of the reasons for its decision.

Section 24 - Form of licence and summary

71.     This section makes provision for a premises licence and the summary of it to be in a form prescribed in regulations made by the Secretary of State. Subsection (2) lists the basic requirements which those regulations must include as to the information to be included in a premises licence. Under section 57, the summary must be displayed prominently at the relevant premises.

Section 25 - Theft, loss, etc. of premises licence or summary

72.     Subsection (1) provides that a premises licence holder may apply to the licensing authority for a copy of the premises licence if it has been lost, stolen, damaged or destroyed. Subsection (3) provides that if the licensing authority is satisfied of the veracity of such an application, it must then issue a certified copy of the licence. Where a licence has been lost or stolen, there is an additional requirement that the licence holder must have reported this to the police. A fee may be prescribed for the issue of replacement documents. Subsection (5) provides that the provisions in the Act will apply to the issued copy of the premises licence as they applied to the original licence. This section applies in relation to the summary of the licence as it applies to the licence.

Section 26 - Period of validity of premises licence

73.     This section makes provision that, unless it has been granted only for a limited period, the premises licence will last until it is surrendered or revoked. Subsection (2) provides that if a premises licence is suspended, it will not have effect during periods of suspension.

Section 27 - Death, incapacity, insolvency etc of licence holder

74.     This section provides that a premises licence will lapse if the holder dies, becomes mentally incapable or insolvent, in the case of a company is dissolved, or in the case of a club ceases to be a recognised club. Insolvency, is relevant to individuals or companies and is widely defined to include, among other things, voluntary arrangements, bankruptcy, administration and administrative receivership. Subsection (2) provides that the lapse of a licence is subject to the possibility of it being reinstated under section 47 or 50.

Section 28 - Surrender of premises licence

75.     This section provides that a licence holder may voluntarily surrender a premises licence by returning it to the licensing authority accompanied by a notice of surrender. If it is impractical to return the licence (e.g. where it has been lost), a statement to that effect must be sent with the notice of surrender. A premises licence ceases to have effect when the authority receives the notice of surrender. Subsection (4) makes reference to the fact that, in certain circumstances, surrendered licences can be reinstated (see section 50).

Section 29 - Application for a provisional statement where premises being built, etc.

76.     Subsections (1) and (2) provide that in relation to premises which are being or are about to be constructed, extended or altered for use for licensable activities a person interested in the premises (in the case of an individual there is the requirement that the person is 18 or over) may apply to the licensing authority for a 'provisional statement'. A provisional statement is a statement issued by the authority in accordance with section 31 (see paragraph 78 below). Subsection (4) provides that any such application may be required to be in a form prescribed by the Secretary of State and accompanied by a fee. Subsection (6) provides that the application must also be accompanied by a schedule of works, which sets out details of the premises concerned, of the licensable activities intended to be carried on there and of the planned construction or alteration works (with plans). The effect of the section is to establish a mechanism whereby those engaged in or about to engage in construction or development work at premises to be used for licensable activities, or already used for those activities, can obtain a certain degree of assurance about their potential trading conditions. By obtaining a provisional statement they can receive, at an early stage, a statement describing the likely effect of the intended licensable activities on the licensing objectives and an indication of the prospects of any future application for a premises licence.

Section 30 - Advertisement of application for provisional statement

77.     This section provides that regulations must require applications for provisional statements to be advertised in the prescribed manner to give responsible authorities and interested parties, including local residents, the opportunity to make representations about the application. Those regulations may also require any such advertisement to contain a statement, in wording set by the regulations, to make it clear that people will be precluded from subsequently objecting to the grant of a premises licence for the premises concerned if they could have made the same objection when the provisional statement was sought.

Section 31 - Determination of application for provisional statement

78.     Subsections (1) and (2) provide that unless relevant representations are made in respect of an application for a provisional statement, a licensing authority will be required to issue a provisional statement stating that no relevant representations have been made.

79.     Subsection (3), together with subsections (6) and (7), provide that where relevant representations are made licensing authorities are required to hold a hearing. In order for representations to be 'relevant' they must have been made by an interested party or a responsible authority (see the definitions in section 13) and they must relate to the likely effect on the licensing objectives if a premises licence were to be granted in the form sought if the premises were constructed or altered in the way proposed in the schedule of works (see section 29). If the representations are made by an interested party there is a further requirement that the licensing authority does not consider them to be frivolous or vexatious. If it does, the authority is to explain its decision to the person who made the representations. The need for a hearing can be dispensed with by agreement of the authority, the applicant for the provisional statement and all of the parties who have made relevant representations.

80.     When a hearing is held (or dispensed with as indicated above), the licensing authority must decide whether, if the premises were constructed or altered in the way proposed in the schedule of works and if a premises licence was sought for those premises, it would consider it necessary for the promotion of the licensing objectives to attach conditions to the licence, to rule out any of the licensable activities applied for, to refuse to accept the person specified as premises supervisor, or to reject the application. The licensing authority must then notify its decision (together with its reasons for considering that it would be necessary to impose any condition or restriction in respect of a premises licence or reject an application for a premises licence) to the applicant, the police and any person who has made relevant representations about the application.

Section 32 - Restriction on making representations following provisional statement

81.     By virtue of this section, in cases where a premises licence is later sought for premises in relation to which a provisional statement has been issued, interested parties and responsible authorities will not be able to make representations on such applications in respect of matters upon which representations could have been made by them when the provisional statement was applied for. Subsection (3) provides that this restriction will not apply if a person who wishes to make those representations has a reasonable excuse for not having made those representations at the time of the application for the provisional statement, or if there has been a material change in the circumstances relating to those premises or the vicinity of those premises since that time. For example, a person may have been confined to hospital during the period in which representations could have been made in circumstances where arrangements could not have been put in place for representations to be made.

Section 33 - Notification of change of name or address.

82.     This section places a duty on the holder of a premises licence to notify the licensing authority of any change of name or address of the premises licence holder or of the designated premises supervisor (unless the designated premises supervisor has already done so in accordance with subsection (4)). Such notification of a change of the licence holder's name or address or that of the designated premises supervisor must be accompanied by the licence (unless that is impracticable, when a statement must be provided) and by any fee that may have been prescribed. Notification of a change of the designated premises supervisor's name or address may be made by the designated premises supervisor under subsection (4) (in which case he must notify the licence holder). Failure to provide the required notifications is an offence.

Section 34 - Application to vary premises licence

Section 35 - Determination of application under section 34 and

Section 36 - Supplementary provision about determinations under section 35

83.     Under these sections a premises licence holder can apply, in the prescribed form and manner, to vary that licence in any way, other than to change the designated premises supervisor (for which there is a separate procedure (see section 37)), to extend the time for which the licence has effect (if it is time limited) or to vary substantially the premises to which it relates. In general the ability to apply for a variation of a premises licence under these sections will concern variation of the conditions attaching to the licence or of the authorised licensable activities. Any such application may be subject to a fee and is subject to regulations under section 17 relating to advertising requirements. The application must also be accompanied by the premises licence (unless that is impracticable when a statement explaining why must be provided).

84.     By virtue of section 35, the authority must make the variation as applied for, subject to the mandatory conditions, unless relevant representations are made, in which case a hearing must be held. In order for representations to be 'relevant' they must have been made by an interested party or a responsible authority (see the definitions in section 13) and they must relate to the likely effect on the promotion of the licensing objectives if the application were to be granted. If the representations are made by an interested party there is a further requirement that the licensing authority does not consider them to be frivolous or vexatious. If it thinks they are, it must explain its decision to the person who made the representations. The need for a hearing can be dispensed with by agreement of the authority, the applicant for the variation and all of the parties who have made relevant representations.

85.     In any case where relevant representations have been made, subsection (3) of section 35 provides that the licensing authority must, if it considers it necessary for the promotion of the licensing objectives (see section 4), modify the conditions of the licence or reject the application for variation (in whole or in part). If the licensing authority does not consider it necessary to modify the licence or reject the application it will grant the variation in the terms sought. The authority must notify its decision to the applicant, the police and any person who has made relevant representations, and must give reasons for its decision. A variation of a premises licence may impose different conditions on different parts of the premises, or impose different conditions in relation to different licensable activities. The provisions in these sections follow closely the procedure to apply in respect of an original application for a premises licence (see paragraph 58 above).

Section 37 - Application to vary licence to specify individual as premises supervisor

86.     Subsections (1) to (3) provide that a premises licence holder can apply to name a person in the licence as the premises supervisor or substitute a different person for the person currently named. Any such application may be required to be in a form prescribed by the Secretary of State and to be accompanied by a fee. The application must also be accompanied by a form of consent given by the proposed new premises supervisor, and by the premises licence or the relevant part of the licence or a statement as to why the licence or part cannot be submitted. Subsection (4) provides that the applicant must notify the police and the existing designated premises supervisor, if there is one, of the application. Subsections (5) and (6) provide that the chief officer of police can object to the variation if he believes there are exceptional circumstances whereby the grant of the application to specify a new premises supervisor would undermine the crime prevention objective, and if so he must provide reasons for his decision within 14 days.

Section 38 - Circumstances in which section 37 application given interim effect

87.     An application to vary a premises licence so as to name a different premises supervisor may be given immediate effect (that is, from the time that the application is received by the licensing authority) if the premises licence holder requests it at the time he makes an application under section 37. This section enables the holder of a premises licence to continue the supply of alcohol if, for example, the existing premises supervisor is suddenly indisposed or unable to work. If the application is rejected, the licence reverts to the form it took before the application was made.

Section 39 - Determination of section 37 application

88.     By virtue of this section the relevant licensing authority must grant the application to vary the designated premises supervisor except where the chief officer of police for the area gives notice that to do so would undermine the crime prevention objective, in which case a hearing must be held. The need for a hearing can be dispensed with by agreement of the authority, the applicant for the variation and the police.

89.     In any case where the police have given notice of objection under section 37 (5), the licensing authority must, if it considers it necessary for the promotion of the licensing objectives (see section 4), reject the application for this variation. In any other case the variation must be granted.

90.     The authority must notify its decision to the applicant, the police and the proposed new designated premises supervisor, and must give reasons for its decision.

Section 40 - Duty of applicant following determination under section 39

91.     If an application to vary the designated premises supervisor is granted, by virtue of this section the premises licence holder must notify the person (if any) who is being replaced as such supervisor. Failure to do so will be an offence.

Section 41 - Request to be removed as designated premises supervisor

92.     A person who wishes to cease acting as designated premises supervisor may give notice under this section. If this person is also the premises licence holder, his notice must be accompanied by the premises licence (unless that is impracticable when he must give a statement of reason as to why this is the case). If he is not the premises licence holder, he must provide the licence holder with a copy of the notice and notify the licence holder that he must send the premises licence to the relevant authority. Failure by the licence holder to submit the licence will be an offence. An effect of this section is that whenever a person stops acting as a designated premises supervisor, the licensing authority will be informed of it and can make the appropriate change in the licensing register. By virtue of subsections (7) and (8) the designated premises supervisor will cease to be such either at the time the licensing authority receives an application or the time specified in the notice if that is later.

Section 42 - Application for transfer of premises licence

93.     Subsections (1) and (2) set out those people or bodies who may apply for the transfer of a premises licence. These are the same as the people and bodies who may apply to be granted a premises licence under section 16. Any such application may be required to be in a form prescribed by the Secretary of State and to be accompanied by a fee. The application must also be accompanied by the premises licence (unless that is impracticable and then the applicant must state the reasons why this is the case). Subsection (5) provides that the applicant must notify the application to the chief officer of police for the area. The police can object to the transfer if they believe there are exceptional circumstances whereby the grant of the application would undermine the crime prevention objective, and if so they must notify the licensing authority and provide reasons for the objection within 14 days.

Section 43 - Circumstances in which transfer application given interim effect

94.     By virtue of this section a person applying for the transfer of a premises licence may request that it be given immediate effect (that is, that it takes effect from the time that the application is received by the licensing authority). Such an application generally requires the consent of the holder of the premises licence. But no consent is required if the applicant can show that he has taken all reasonable steps to obtain that consent and that he is in a position to use the premises straightaway for the licensable activities authorised by the licence. An authority must provide reasons for any decision to refuse to exempt an applicant from the requirement for consent. The effect of this section is to allow licensable activities to be carried on, at the premises, without interruption, pending the determination of an application for a transfer. The section allows for the possibility of a transfer being given interim effect even where the transferor has not given consent because in some circumstances he may be indisposed or unable to give consent, or a conflict may exist between the existing licence holder and others which does not concern the carrying on of the licensable activities for the purposes of the Act. If the application is rejected, the applicant ceases to be treated as the holder of the licence under this section and the licence reverts to the person who held it before the application was made.