Usually a chairperson would be an elected councillor but Wanganui's council "decided to go with an independent commissioner".
Mr Hylton has also been appointed as a "list member" of the licensing committee the neighbouring Rangitikei District Council has set up.
The Wanganui commissioner's role is only part-time so he is going to use his extensive knowledge of local authority affairs and work as a consultant.
Five others have been selected to serve on the DLC, largely to give it some flexibility.
"If it's a contested application then that will be heard by myself as commissioner and two other committee members. Of those five people I pick two of them to sit with me on a hearing, bearing in mind not everyone will always be available or there may be a conflict of interest," Mr Hylton said.
If an application for a licence or manager's certificate is uncontested, then he will be able to decide on that.
Pay scales set by the Minister of Justice means he will be paid $624 per day (or $78 per hour for part days) while committee members will receive $408 per day (or $51 per hour for part days).
The new Act retains many elements of the previous legislation, but it has given councils much broader scope and power.
The DLC will handle all liquor licences and if any of its decisions are appealed then they would be heard by the Alcohol Regulatory and Licensing Authority in Wellington.
There were four types of licence that the committee can consider and that is broadly the same as under the previous Act. These include on-premises licences, off-licences, club licences and special licences.
But from today the law on the type of stores eligible for an off-licence changes, to strengthen the current approach that dairies and convenience stores are not eligible. And while grocery stores can apply for a licence, the licensing authority will consider such things as sales revenue, the range of goods sold in that store, its size, layout and appearance.
A key element the licensing authority must consider when granting a licence is what impact it may have on the "good order" of the locality. These cover such things as future noise levels, nuisance and vandalism.
Other major changes promoted with the new act will see a widening of the definition of "public place" which would affect future liquor bans. This would include carparks and school grounds.
"The new law was drafted to essentially give local authorities more power in decision-making especially around licensing," Mr Hylton said.
"Council has set its own liquor policy so that will have a big impact on what the committee ultimately decides what the conditions will be for those licences in place in Wanganui," he said.
From today new licence applications will be reported back to the commissioner and the committee by the Wanganui licensing inspector (employed by the council), the police and the Medical Officer of Health.
"And then there's people with an interest greater than the public who can put in submissions as well, along with the licences applicant themselves."
Licences currently in place in Wanganui will roll over until they come up for renewal. New licences will have a year and then they are renewed. Existing licences, after they have an initial renewal, will run for three years.
"But the thing is the new conditions covered in the legislation will take effect every time those licences come up for renewal. That includes temporary licences and managers' licences."
Any application is open to appeal to the Licensing Commission and even then a decision made by that body would be open to appeal in the High Court.
"But certainly the new Act does give the public greater ability to make their own submissions to an application and appeal," he said.
Mr Hylton said just where licences can be operated is something that would be covered by council under its own liquor policy "but that's something council needs to resolve".