Moved by
Baroness Neville-Rolfe
89B: After Clause 42, insert the following new Clause—
“Market rent option: procedure
(1) The Pubs Code may—
(a) make provision about the procedure to be followed in connection with an offer of a market rent option (referred to in this Part as “the market rent option procedure”);
(b) confer functions on the Adjudicator in connection with that procedure.
(2) Provision made under subsection (1) may, in particular—
(a) make provision for the tied pub tenant to give notice to the pub-owning business that the tenant—
(i) considers that circumstances are such that the pub-owning business is required to offer the tenant a market rent option, and
(ii) wishes to receive such an offer;
(b) require the appointment of a person (referred to in this Part as an “independent assessor”) to determine the market rent of the premises concerned in a case where the pub-owning business and the tied pub tenant cannot agree on that market rent;
(c) require that appointment to be made by the pub-owning business and the tied pub tenant acting jointly or (where they cannot agree on a person to appoint) by the Adjudicator;
(d) require the Adjudicator to set criteria which a person must satisfy in order to be appointed as an independent assessor;
(e) specify that the determination of the market rent by the independent assessor must be conducted in accordance with provisions of documents specified in the Pubs Code;
(f) where any document is specified for the purposes of paragraph (e), refer to the provisions of the document as amended from time to time.
(3) The Pubs Code may make provision for—
(a) the tenancy or licence under which the tied pub is occupied, and
(b) any other contractual agreement entered into by the tied pub tenant with the pub-owning business in connection with the tenancy or licence,
as they are in force when a notice is given by virtue of subsection (2)(a), to continue to have effect until such time as the market rent option procedure has come to an end (regardless of whether any of the agreements would or could otherwise cease to have effect before that time).
(4) The Pubs Code may, for the purposes of subsection (3), specify the circumstances in which the market rent option procedure is to be treated as having come to an end.”
89C: After Clause 42, insert the following new Clause—
“Market rent option: disputes
(1) The Secretary of State may by regulations confer functions on the Adjudicator in connection with the resolution of disputes relating to the offer of a market rent option.
(2) The regulations may, in particular, make provision concerning the resolution of disputes about whether—
(a) circumstances are such that a pub-owning business is required to offer a tied pub tenant a market rent option;
(b) a proposed tenancy or licence is MRO-compliant;
(c) a determination of the market rent of a tenancy or licence made by an independent assessor has been made in accordance with the Pubs Code;
(d) any other requirement of the market rent option procedure has been complied with.
(3) The regulations may, in particular, confer on the Adjudicator the function of determining the market rent of a tenancy or licence in such circumstances as may be specified in the regulations.
(4) Nothing in sections 45 to 49 applies in relation to provision made by virtue of section (Pubs Code: market rent option) or (Market rent option: procedure) but the regulations may include provision which is similar to that contained in or made under those sections.”