Due to the high volume of policy changes currently underway, we are no longer updating the Licensing Policy Manual as each new policy directive is issued. This will be done once the Liquor Policy Review has concluded. For information on all policy changes since February 2014, please refer to the policy directive on the Resources page of our website. Liquor Control and Licensing Branch Licensing Policy Manual Last Update – January 2014 LCLB207 Licensing Policy Manual – Update Summary Date January 2014 December 2013 October 2013 June 2013 May 2013 April 2013 March 2013 Update Description Updated Section & Page Licensing Process Consideration of tied house circumstances Tied house exemption for small and medium volume manufacturers Section 3 3.2.5 ............................... 8 Licensing Process Applications for licence renewal received more than thirty days after expiry date Section 3 Licensing Process Consideration of tied house circumstances Section 3 3.2.5 ............................ 7-8 Liquor Service and Sales Stadiums Section 7 7.7 ................................ 14 UBrew/UVin [New section] Section 18 Liquor Service and Sales Stadiums Section 7 7.7 ................................ 14 Manufacturer Licenses Manufacturer Licence Section 17 17.2 ................................ 1 Hours of Operation Conditions for staff parties Temporary suspension of a licence for staff party Temporary suspension of a food primary licence for a special event Temporary suspension of a liquor primary licence for a special event Alternate use of food primary establishments Alternate Use for Catered Events Alternate use of liquor primary and liquor primary club licensed establishments prior to licensed hours Alternate use of liquor primary licensed and liquor primary club establishments during licensed hours Section 5 5.2.2 ............................... 7 5.2.3 ............................... 7 Catering Licences and Catering Endorsements Introduction Catering Endorsement Eligibility Examples of Businesses Ineligible for a Catering Endorsement Venue Catered Events Held On-site Section 14 14.0 ................................ 1 14.2.2 ............................. 3 14.2.9 ............................. 5 14.8.2 ........................... 13 14.8.2.1 ........................ 13 Catering Licences and Catering Endorsements Introduction Section 14 14.0 ................................ 1 Licensing Process Limitation on temporary changes to a licence Section 3 3.5.14 ........................... 33 Liquor Service and Sales Application of licence amendment policy in permanent changes to capacity Section 7 Updated with new tied house, trade practice and Update Summary Page 1 3.2.5.1 ............................ 9 3.7.5 ............................. 35 5.2.4 ............................... 7 5.2.5 ............................... 8 5.3.2 ............................... 9 5.3.3 ............................... 9 5.3.4 ............................. 10 5.3.5 ............................. 10 6.3.3 ............................... 6 Licensing Policy Manual – Update Summary February 2013 manufacturer endorsement policy. Various Catering Licences and Catering Endorsements Business Relationship with Event Host Section 14 14.4.2 ............................. 6 General Information Licence Categories Section 2 2.2 .................................. 8 Licensing Process Notice to a local government or First Nation of an application to permanently amend a liquor primary licence or manufacturer lounge or special event area endorsement Section 3 Business Ownership and Changes to a Licence Management contracts with third parties Section 4 4.5.5 ............................. 14 Hours of Operation Alternate Use for Catered Events Section 5 5.3.3 ............................... 9 Premises Application of licence amendment policy in temporary or permanent changes to capacity Section 6 Liquor Service and Sales Place of off premises sales within the licensed establishment Section 7 7.6.5 ............................. 10 Management and Control of a Licensed Establishment Full exemptions from training requirement Section 8 8.4.2 ............................. 10 Advertising and Signage Nature of the information provided Section 13 13.1.1 ............................. 1 Licensee Retail Stores Relocations Section 15 15.2.2 ............................. 2 Sections that have been rewritten: Minors Entertainment Section 10 Section 11 Sections that have been added: Catering Licenses and Catering Endorsements Licensee Retail Stores Wine Stores Section 14 Section 15 Section 16 Update Summary Page 2 3.5.1 ............................. 28 6.3.3 ............................... 6 Liquor Licensing Policy Manual Table of Contents SECTION 1: Introduction ........................................................................................................ 1 SECTION 2: General Information ........................................................................................... 1 2.0 Introduction .................................................................................................................. 1 2.1 Operating Environment ................................................................................................ 1 2.2 Licence Categories ...................................................................................................... 5 SECTION 3: Licensing Process .............................................................................................. 1 3.0 Introduction .................................................................................................................. 1 3.1 Stage 1: Application for a New Licence ........................................................................ 1 3.2 Stage 2: Applicant Eligibility Assessment ..................................................................... 4 3.3 Stage 3: Site and Community Assessment ................................................................ 12 3.4 Stage 4: Building Assessment and Issue of a Licence ............................................... 18 3.5 Licence Amendments ................................................................................................ 29 3.6 Re-Application ........................................................................................................... 33 3.7 Licence Renewals ...................................................................................................... 34 SECTION 4: Business Ownership and Changes to a Licence ............................................. 1 4.0 Introduction .................................................................................................................. 1 4.1 Change Approval Authority .......................................................................................... 1 4.2 Legal Name/Internal Ownership Changes.................................................................... 5 4.3 Change in Ownership or Sale of a Licensed Establishment ......................................... 8 4.4 Relocation of a Licensed Establishment..................................................................... 10 4.5 Valid Interest in an Establishment .............................................................................. 13 4.6. Dormant Liquor Primary Licences .............................................................................. 14 SECTION 5: Hours of Operation ............................................................................................. 1 5.0 Introduction .................................................................................................................. 1 5.1 Hours of Sale ............................................................................................................... 1 5.2 Special Events ............................................................................................................. 6 5.3 Alternate Use ............................................................................................................... 8 SECTION 6: Premises ............................................................................................................. 1 6.0 Introduction .................................................................................................................. 1 6.1 Posting of Licence and Access to Approved Plans ...................................................... 1 6.2 Structural Alterations.................................................................................................... 2 6.3 Capacity....................................................................................................................... 4 6.4 Outdoor Patios ............................................................................................................. 6 TABLE OF CONTENTS Page 1 Liquor Licensing Policy Manual 6.5 Adjoining Licensed and Unlicensed Areas ................................................................... 8 6.6 Restaurant Lounges .................................................................................................. 11 6.7 Restaurant Operating Details and Furnishings ........................................................... 12 SECTION 7: Liquor Service and Sales ................................................................................... 1 7.0 Introduction .................................................................................................................. 1 7.1 Type of Liquor Sold ...................................................................................................... 1 7.2 Ordering Liquor ............................................................................................................ 2 7.3 Pricing ......................................................................................................................... 3 7.4 Dispensers and Drink Sizes ......................................................................................... 5 7.5 Replacement of Faulty Keg or Spoiled Product by Brewer’s Agent .............................. 7 7.6 Off-Premises Sales ...................................................................................................... 8 7.7 Special Conditions ..................................................................................................... 10 7.8 Sacramental Wine ..................................................................................................... 23 SECTION 8: Management and Control of a Licensed Establishment .................................. 1 8.0 Introduction .................................................................................................................. 1 8.1 General Consumption .................................................................................................. 1 8.2 Consumption by Employees ........................................................................................ 4 8.3 Management of Patron Conduct .................................................................................. 5 8.4 Serving It Right Program .............................................................................................. 7 SECTION 9: Food Service ....................................................................................................... 1 9.0 Introduction .................................................................................................................. 1 9.1 General Conditions ...................................................................................................... 1 SECTION 10: Minors ............................................................................................................... 1 10.0 Introduction .................................................................................................................. 1 10.1 General Conditions ...................................................................................................... 1 10.2 Minors as Employees and Entertainers ........................................................................ 3 10.3 Minors in Licensed Establishments .............................................................................. 4 SECTION 11: Entertainment ................................................................................................... 1 11.0 Introduction .................................................................................................................. 1 11.1 General Conditions ...................................................................................................... 1 11.2 Audio, Film, Video and Television ................................................................................ 3 11.3 Contests and Tournaments .......................................................................................... 4 11.4 Gaming (gambling) ...................................................................................................... 5 11.5 Adult Entertainment ..................................................................................................... 5 11.6 Entertainment in Food Primary Establishments............................................................ 7 TABLE OF CONTENTS Page 2 Liquor Licensing Policy Manual 11.7 Entertainment in Liquor Primary Establishments ........................................................ 10 SECTION 12: Trade Practices ................................................................................................. 1 12.0 Introduction .................................................................................................................. 1 12.1 Inducements ................................................................................................................ 1 12.2 Selection of products for sale ....................................................................................... 2 12.4 Consumer Taste Trials................................................................................................. 3 12.5 Theme Night Promotions in Liquor Primary Establishments ......................................... 5 12.6 Manufacturer Hospitality, Educational Activities ........................................................... 7 12.7 Sponsorship ................................................................................................................. 9 SECTION 13: Advertising and Signage.................................................................................. 1 13.0 Introduction .................................................................................................................. 1 13.1 General Conditions ...................................................................................................... 1 SECTION 14: Catering Licences and Catering Endorsements.............................................. 1 14.0 Introduction .................................................................................................................. 1 14.1 Definitions and Interpretation ....................................................................................... 1 14.2 Eligibility....................................................................................................................... 2 14.3 Application Process and Changes to a Licence ........................................................... 5 14.4 Catering Business Requirements ................................................................................. 6 14.5 Liquor Service and Sales ............................................................................................. 8 14.6 Minors ........................................................................................................................ 10 14.7 Catering Authorization Approval Process ................................................................... 10 14.8 Catered Events .......................................................................................................... 13 14.9 Residential Events ..................................................................................................... 16 14.10 Serving Liquor at Other Events .................................................................................. 17 SECTION 15: Licensee Retail Stores ...................................................................................... 1 15.0 Introduction .................................................................................................................. 1 15.1 Licensee Retail Store (LRS) Licence ........................................................................... 1 15.2 Structural changes and relocations .............................................................................. 1 15.3 Standalone Policy ........................................................................................................ 2 15.4 Signs and advertising................................................................................................... 4 15.5 Conditions for liquor sales ............................................................................................ 5 15.6 Sale of non-liquor items ............................................................................................... 6 15.7 Licensee contests ........................................................................................................ 6 15.8 Value-Added Promotions in Licensee Retail Stores ..................................................... 7 15.9 Consumer taste trials ................................................................................................... 8 TABLE OF CONTENTS Page 3 Liquor Licensing Policy Manual 15.10 Employee tastings ....................................................................................................... 9 15.11 Temporary de-licensing ............................................................................................... 9 15.12 Appendix 1: History of the LRS model ......................................................................... 9 15.13 Appendix 2: Summary of permitted and prohibited associations for licensee retail stores upon transfer of ownership, relocation, or structural change ...................................... 12 SECTION 16: Wine Stores........................................................................................................ 1 16.0 Introduction .................................................................................................................. 1 16.1 Wine Store Licence ...................................................................................................... 1 16.2 Moratorium on new licences ........................................................................................ 1 16.3 Valid interest and management contracts with third parties ......................................... 1 16.4 Structural changes and relocations .............................................................................. 2 16.5 Standalone Policy ........................................................................................................ 2 16.6 Ownership Transfers.................................................................................................... 4 16.7 Signage and advertising .............................................................................................. 4 16.8 Conditions for wine sales ............................................................................................. 5 16.9 Sale of non-wine items................................................................................................. 7 16.10 Licensee contests ........................................................................................................ 7 16.11 Value-Added Promotions in wine stores....................................................................... 7 16.12 On-premises wine consumption ................................................................................... 8 16.13 Temporary de-licensing ............................................................................................... 9 SECTION 17: Manufacturer Licences...................................................................................... 1 17.0 Introduction .................................................................................................................. 1 17.1 Definition of “Manufacturing” ........................................................................................ 1 17.2 Manufacturer Licence .................................................................................................. 1 17.3 Additional conditions for winery licensees only............................................................. 2 17.4 Manufacturer site ......................................................................................................... 3 17.5 Manufacturers located on Agricultural Land Reserve (ALR) ......................................... 4 17.6 Liquor Distribution Branch (LDB) Manufacturer’s Agreement ...................................... 4 17.7 Manufacturer licence application process .................................................................... 4 17.8 Plans approval guidelines for manufacturer’s licences ................................................. 5 17.9 Manufacturer licence expiry and renewal ..................................................................... 6 17.10 Serving it Right requirements for manufacturers .......................................................... 6 17.11 Agent licence permissions ........................................................................................... 7 17.12 Signage ....................................................................................................................... 7 17.13 Contract Packaging (Co-Packing) ................................................................................ 7 TABLE OF CONTENTS Page 4 Liquor Licensing Policy Manual 17.14 Hours of Operation ...................................................................................................... 7 17.15 Storage of liquor by liquor manufacturers..................................................................... 8 17.16 Minors in manufacturer premises ................................................................................. 8 17.17 Sampling...................................................................................................................... 8 17.18 Sale of liquor ................................................................................................................ 9 17.19 Pricing ......................................................................................................................... 9 17.20 Endorsements............................................................................................................ 10 17.21 Manufacturer tied house requirements ....................................................................... 15 17.22 Manufacturer trade practices requirements ................................................................ 15 17.23 Manufacturer contests and tournaments .................................................................... 15 17.24 Manufacturer inspection requirements ....................................................................... 15 SECTION 18: UBrew/UVin ........................................................................................................ 1 18.0 Introduction .................................................................................................................. 1 18.1 Definitions and Interpretation ....................................................................................... 1 18.2 Application Process and Changes to a Licence ........................................................... 1 18.3 Business Requirements ............................................................................................... 3 18.4 Advertising ................................................................................................................... 4 18.5. Relationships with Liquor Manufacturers and Agents ................................................... 6 18.6 Minors .......................................................................................................................... 7 18.7 Production Requirements ............................................................................................ 7 Policies by Applicable Licence Category ............................................................................... 1 14BIndex ......................................................................................................................................... 1 TABLE OF CONTENTS Page 5 Liquor Licensing Policy Manual SECTION 1: Introduction Purpose and Format of this Manual This manual replaces the previous version issued in May 2003, and the Liquor Licensing Operating Manual that was originally compiled and printed in 1997. The Liquor Licensing Policy Manual is intended as a reference guide and repository for all licensing policies. It is specifically written for the staff of the Liquor Control and Licensing Branch; however, external regulatory and enforcement agencies and the licensees of licensed establishments may also find this manual a useful source of information. The manual is divided into broad chapters, such as General Information, Licensing Process, Business Ownership and Changes to a Licence, and so on, that mirror the chapters of the former Liquor Licensing Operating Manual. Each chapter is then divided into sections according to more discrete topics that fall within the chapter headings. With the exception of this chapter and chapter 2, the information in each section is further divided into three recurring segments. The first, Policy Rationale, gives a general overview of the policies pertaining to the topic and explains why the policies are in effect. The second, Policies, clearly articulates precise, numbered policy statements and gives statutory references for each. Although it is usually quite clear from the content of the policy statements themselves, readers can refer to the table of policies by applicable licence category in the appendix if unclear about which licence categories a particular policy is meant to apply. The table provides a cross-reference of the numbered policies with all applicable licence categories. For ease of reference back to the full text of the policies and associated rationale, the 1st number in the policy refers to the chapter in which the policy can be found, the 2nd refers to the section within the chapter, and the 3rd is the number sequence within that section in which the policy is listed. The Effect of Policies The Liquor Control and Licensing Act and Regulations give the general manager of the Liquor Control and Licensing Branch a great deal of discretionary decision-making power. This discretion allows the general manager to consider unique circumstances that may arise in individual cases. But the concept of administrative fairness limits the exercise of this discretion within certain boundaries. In all instances, the general manager must apply the principles of the Act and regulations and, in doing so, act consistently with the statutory mandate and objectives within them. Therefore, the policies in this manual are the mechanisms through which the branch intends to bring about consistent and principled practice, and a common understanding of purpose. Ultimately, these are the mechanisms through which administrative fairness is assured. Within this broader context, policy statements in this manual should be understood as the way the branch interprets the legal requirements and obligations in the Act and regulations. Of course, in being only interpretations of the law, they do not have any legal effect in the absence of the statutory sources from which they are derived. Additionally, these policies should be understood as directions to staff that communicate expectations about the way branch business should be conducted. They are not directions to licensees who are also bound by the legal requirements and obligations in the Act and regulations, and by the terms and conditions of their licences. Nevertheless, the policies articulated in this manual may be helpful to licensees and other interested parties who wish to know how branch policies may be applied in their circumstances. Mandatory or Discretionary? The language used in this manual contains clear signposts that guide staff through a complex mix of mandatory and discretionary policies, practices and decision steps. Words such as “must”, “shall”, “will”, SECTION 1 - INTRODUCTION Page 1 Liquor Licensing Policy Manual “required” or “requirement” indicate that an action or step is mandatory. This means that the general manager has no choice but to take the step or reach the decision specified in the legislation. On the other hand, words such as “may”, “can”, or “might” indicate that the general manager does have a choice or can exercise some discretion in making a decision. Use of the word “should” indicates an action or step that is neither mandatory nor discretionary; it recommends a preferred course of action. Input Every effort has been made to ensure this manual is complete; however, input from you is essential in tailoring it to your needs. Are there areas that need more detail? Are there areas where less depth is needed? Are there errors or omissions? Please provide feedback on these and any other areas of concern to: Policy, Planning and Communications Division Liquor Control and Licensing Branch PO Box 9292, Stn Prov Govt Victoria, B.C. V8W 9J8 Phone: (250) 952-5787 Email: [email protected] H SECTION 1 - INTRODUCTION Page 2 Liquor Licensing Policy Manual SECTION 2: General Information 2.0 Introduction Although this chapter contains “general information” as the title suggests, the topics discussed here are of great importance. They form the framework within which liquor licensing functions are performed by staff in the Liquor Control and Licensing Branch. Unlike the chapters that follow, this one is written in narrative form and does not contain any discrete policy statements. This does not mean that the material has no policy ramifications. Indeed, because they provide a framework for branch functions and, more importantly, for the liquor licensing system as a whole, these topics are the context within which all branch policy is conceived. The topics in this chapter are organized under the headings: Operating Environment, and Licence Categories 2.1 Operating Environment Introduction The application of the policies and practices detailed in this manual are best understood in light of the context or “operating environment” in which staff of the Liquor Control and Licensing Branch do their work. Many different factors contribute to the current operating environment, including the history of liquor regulation in British Columbia, the scope or statutory framework of the Liquor Control and Licensing Act and Regulations, and the relationship the branch has with a range of different stakeholder groups. Below, the current operating environment is described under the following headings: Branch Organization and Function Client Groups Operating Assumptions, and Operating Principles Branch Organization and Function Until 1973, the Liquor Control Board (followed briefly by the Liquor Administration Branch from 1973 to 1976) was responsible for all aspects of liquor control and licensing, including distribution and sales. In response to concerns that the sales and distribution functions of the branch diminished, and sometimes conflicted with, the control and licensing functions, the Liquor Control and Licensing Branch and the Liquor Distribution Branch were established as two separate organizations in December of 1976. The Liquor Control and Licensing Branch is currently divided into four arms: Licensing and Local Government Liaison; Management Services; Compliance and Enforcement; and Policy, Planning and Communications. Staff in the Licensing and Local Government Liaison; Policy, Planning and Communications; and Management Services Divisions are located in Victoria. The Compliance and Enforcement Division maintains a small staff in Victoria, and has eleven field offices throughout the province reporting through three regional managers, one in Surrey, one in Vancouver and one in Victoria. As in any organization with a complex mandate and a broad range of duties and responsibilities, some of the tasks performed by branch staff are not so easily isolated or categorized. Nevertheless, seven distinct functions can be identified as being the major focus of branch efforts. These include: Issuing, renewing and transferring licences for the manufacture and resale of liquor SECTION 2 – GENERAL INFORMATION Page 1 Liquor Licensing Policy Manual regulating and monitoring product advertising administering regulatory exemptions for medicinal, toilet, confectionery, culinary, cleaning or disinfecting products containing alcohol inspecting and educating licensees to ensure they comply with the law maintaining public relations with law enforcement, local government and other regulatory agencies taking appropriate enforcement actions for contravention of the Liquor Control and Licensing Act and Regulations, and liaising with stakeholders to develop more effective policies and legislation. These things the branch does in pursuit of a vision that reflects on the broader interests of communities and all people in the province, building the conditions under which there are: Safer and healthier communities where businesses and individuals manufacture, sell, serve and promote alcohol responsibly. 1 F Client Groups An important aspect of the branch’s operating environment is the relationship the branch has with a wide range of client groups. Identifying the customer of a public program can be difficult, since the intended beneficiaries of the service are often not the ones with whom the program has most direct contact. For the Liquor Control and Licensing Branch, the direct customers or clients – that is, those who utilize, most directly, the services offered by the branch – primarily include licence applicants, licensees, and liquor manufacturers and their agents. On the other hand, their indirect clients – or those who do not utilize the branch’s services but are helped indirectly by its activities – include individuals, their communities, and the general public. The latter are, of course, the intended beneficiaries of liquor regulation by government. Operating Assumptions Another important aspect of the branch’s operating environment is the set of beliefs or operating assumptions upon which its functions are based. Often, a program’s operating assumptions are only implicitly understood, but they form the reference points by which program participants carry out their duties. The beliefs or assumptions underlying different actions are usually based on facts, experience, observation, or an application of the rules that govern the program. These assumptions differ from the organization’s operating philosophy or principles (discussed under the next heading) to the extent that they do not, in themselves, form the fundamental rationale by which decisions are made. Rather, they are part of the fact pattern and organizational wisdom that builds over time and contributes to the policies, procedures and practices of the organization. A list of operating assumptions employed by the Liquor Control and Licensing Branch are outlined below. While not an exhaustive list, they include the more influential ones for liquor licensing operations. 1. While moderate alcohol consumption may have some modest health benefits, long term excessive drinking has adverse health effects. 2. Alcohol is a drug that, if taken in sufficient quantities, will affect short-term mental judgment and physical dexterity. 1 The Branch Service Plan is a useful source of more information about the branch mission, mandate and strategic goals being employed in pursuit of this vision. SECTION 2 – GENERAL INFORMATION Page 2 Liquor Licensing Policy Manual 3. Although generally seen as a pleasant complement or accompaniment to social occasions, alcohol has addictive properties and can lead to socially unacceptable behaviour when abused. 4. Minors should be protected from the negative effects of alcohol consumption. 5. Neighbourhoods and communities are impacted by the sale and manufacture of liquor and their opinions are considered in licensing decisions falling within the statutory framework set down by government. 6. Control of the number and location of liquor primary licensed establishments prevents a proliferation of licensed establishments that may lead to the sale of liquor to minors and intoxicated persons, overcrowding, or other actions that may be harmful to the community. 7. It is in the best interests of the liquor and hospitality industries to encourage responsible drinking behaviours that contribute to the well being of their customers and the public. 8. Licence holders are responsible for designing their operations and conducting their business in such a way as to realize the outcomes and principles articulated in liquor licensing statutes and regulations. Operating Principles: Liquor Primary and Liquor Primary Club Licences The last, but probably the most important elements of the branch’s operating environment are the fundamental principles guiding the regulation of liquor in British Columbia. Under the Liquor Control and Licensing Act and Regulations, the general manager has a great deal of discretion. Although there are some specific requirements about how that discretion is to be exercised, little is codified in the statute. The general manager is required to use good judgment in the “public interest”. The operating principles that guide the general manager’s decisions – and, by implication, branch practices, are, therefore, an expression of how the public interest is interpreted for branch purposes. They are as follows: Public Safety It is in the public interest to safeguard individuals and communities from the harm caused by: the inappropriate or reckless sale and/or manufacture of alcohol which might arise in instances of destructive competition 2 , and the abuse of alcohol and other irresponsible drinking behaviour. F F Regard for Community Standards It is in the public interest to have regard for: the impacts of alcohol sales and manufacture, and the extent to which these impacts are understood and supported by individuals and their communities. The first of these principles, public safety, is aimed at two types of failure in the private market place associated with liquor sales: destructive competition and externalities. Destructive competition is described by economists as a situation that occurs when competition is so intense that participants in an 2 Destructive competition occurs when competition is so severe that participants in the industry may be induced to act improperly or even illegally in order to gain a competitive advantage. Such competition can arise when the economic viability of establishments is threatened by oversupply. Considerations of economic viability of existing establishments is a relevant factor in considering new liquor primary licence applications if based on the legitimate public interest of the social and economic benefits when the community as a whole derives from having a substance, such as alcohol, regulated and controlled. Economic viability of existing establishments is not relevant if considered for the benefit of those existing establishments. [Reference: Coxson Holdings Ltd. d.b.a. Toro’s Neighbourhood Pub v Deputy Minister of Labour and Consumer Services and General Manage Liquor Control and Licensing Branch, BCSC No. S4640 Duncan Registry.] SECTION 2 – GENERAL INFORMATION Page 3 Liquor Licensing Policy Manual industry may be induced to act improperly or even illegally in order to gain a competitive advantage. For example, without regulation, industry participants may operate at a loss for long periods. In the context of liquor regulation, these are the conditions that may lead to the sale of liquor to minors and intoxicated persons, overcrowding, or other actions that could be harmful to the community. The other type of market failure the public safety principle is intended to address is what economists refer to as the problem of externalities or “spill-over effects”. This problem is typically characterized by a situation in which the costs are borne by others who are not part of the exchange between supplier and purchaser. 3 Again, in the context of liquor regulation, it is often the individuals and communities beyond the place where liquor is bought and consumed who suffer the consequences when alcohol is abused. For example, abuse of alcohol can lead to increased domestic violence and automobile accidents in which the victims are generally third parties. F F The second of the two operating principles, regard for community standards, addresses the need to somehow find a balance between competing interests and recognize that different communities have different requirements and standards. The rules that make up the liquor licensing system must, therefore, be tempered by a capacity to take the circumstances of the individual case into consideration. Factors considered when making liquor regulation decisions should include the impacts of alcohol manufacture and sales, risks and benefits to all clients and stakeholders, and the extent to which individuals and communities accept those risks and benefits. Operating Principles: Licensee Retail Store, Wine Store, Food Primary, Catering, UBrew/UVin and Manufacturer Licences Amendments to the Act which came into force in 2002 added sections 11.1 and 11.2 which changed the role of local and First Nations governments in the general manager’s decisions whether to issue a licence of a prescribed category. The licence categories prescribed in the regulation are liquor primary and liquor primary club licences. As discussed above, the interpretation of “public interest” in liquor primary and liquor primary club applications comprises two elements: public safety and regard for community standards. Public safety issues include concerns about service to minors, over-consumption, over-service and illicit liquor. Regard for community standards encompasses issues related to the impact of a liquor outlet on the local community including effects on other nearby businesses and public institutions, and the preferences of local residents regarding the presence of liquor establishments in their neighbourhood. Other types of liquor establishment which involve no on site consumption or on site consumption only as an ancillary activity involve different considerations which impact on the public interest. These other types of liquor outlets have a lower impact on a community. For these outlets, the legislature determined that local government or First Nation input would be limited to matters related to community standards and would be expressed through zoning bylaws. A local government or First Nation may restrict the locations of non-prescribed licensed establishments by adopting zoning bylaws which do not allow for that type of business in a particular location. They do not, however, have the authority to approve the location of a particular licensed establishment. This authority remains with the general manager. Since the zoning bylaws deal with the community standards aspect of the public interest, the general manager must only consider the public interest in relation to public safety concerns. The general manager’s consideration of the public interest as it relates to non-prescribed licensed establishments (LRSs, wine stores, food primaries, catering businesses, UBrews/UVins and These circumstances are sometimes referred to as “the tragedy of the commons” after the story often told to illustrate the problem. The story is about an English village common area used for sheep grazing by all the village shepherds. Since no single villager owned the property and no one took responsibility for it, the land was eventually over-grazed and destroyed ... thus the term “tragedy of the commons” describing a condition in which someone or something is harmed through the lack of personal cost or consequence to the direct users of a resource or commodity. 3 SECTION 2 – GENERAL INFORMATION Page 4 Liquor Licensing Policy Manual manufacturers) encompasses only issues of public safety which may include issues related to service to minors, over-consumption, over-service and illicit liquor. In assessing these concerns the general manager may consider: submissions from local government and First Nations, local residents or businesses related solely to public safety, evidence of community controversy about the licence application related solely to public safety; the applicant’s compliance history; any changes in circumstances as a licensing application progresses which affect public safety issues; any other information the general manager considers relevant to public safety. The general manager’s consideration of the public interest as it relates to non-prescribed licensed establishments does not encompass matters related to community standards, such as: information about other businesses or social or recreational facilities or public buildings close to the proposed location; information about the economic impact on competitors and business neighbours; parking, loading facilities at a premise, impact on property rights, etc. (which are all dealt with by the local government or First Nation by zoning bylaws). local government or First Nation comments respecting community standards in relation to particular licence applications. 2.2 Licence Categories Background The current licensing system is established by the Liquor Control and Licensing Act and its accompanying regulations. Some of the policy statements in the manual come directly from the Act or regulation. Others are policies established under the authority given to the general manager in the Act, or are based on the branch’s interpretation of the licensing provisions in the Act and regulations. The history of liquor regulation in British Columbia shows that the different categories of liquor licence have evolved largely in response to changing public attitudes toward liquor and to changing socioeconomic circumstances in British Columbia. Initially, only hotels and private clubs were licensed to sell liquor. Over time, however, communities have come to view liquor service as acceptable in a much broader range of settings. For eighty years, the liquor licensing system was structured largely around the primary operating purpose of licensed establishments — beginning, as it did, with the licensing of hotels and private clubs in 1921. With this focus, licence classes had to be carefully categorized and defined in terms of the character of the establishments as much as the character of liquor service or sales. In 2002, the focus of liquor licensing shifted principally to the nature of liquor service and sales; determined, for the most part, by whether liquor consumption is on or off the premises, and whether or not it accompanies food. Primary operating purpose is still a consideration, to the extent that a licence to sell liquor will only be granted if the establishment is in the business of “food or beverage service, entertainment or hospitality” as required by the Liquor Control and Licensing Act and the Liquor Control and Licensing Regulation. It is also a consideration in granting a licence to provide services to people making their own liquor in UBrews and UVins, and in granting a licence to manufacture liquor in wineries, distilleries, and breweries. The categories of licence are, however, defined more by the nature of the industry — that is, the larger focus of the activity — rather than the discrete characteristics of the establishments being licensed. A general description of each of the licence categories follows. More information can be found under specific topic headings in later chapters of this manual. Details about the UBrew/UVin, manufacturers, SECTION 2 – GENERAL INFORMATION Page 5 Liquor Licensing Policy Manual and some special licence topics4 are provided in other manuals or information materials maintained by the Liquor Control and Licensing Branch. Liquor Primary Licence The liquor primary licence is the broadest category of licence administered by the branch since establishments operating under this licence may be anything from a standalone bar, hotel or resort to a military mess or cultural centre 5 . The nature of the liquor service in liquor primary establishments is set out in sections 8 and 9 of the regulations. A liquor primary establishment must be primarily in the business of “beverage service, entertainment or hospitality”. They must offer food and non-alcoholic beverages in addition to their liquor service, but food service in the range generally offered by a restaurant is not expected. Under section 8(2) of the regulations, restaurants and take-away food outlets are specifically ineligible for a liquor primary licence. Youth-oriented businesses, motor vehicles, and video games arcades are also not eligible for liquor primary licences. F F The terms and conditions of the liquor primary licence, and any endorsements that may be applied to the licence, emphasize public safety and good relationships with the community in which the establishment is located. For this reason, local government or First Nations input is an important aspect of the liquor primary licensing process. Their input is sought during the application process particularly on issues relating to the establishment’s location, size, impact on the neighbourhood and surrounding community, and the views of nearby residents. It is also required if the licensee later applies to relocate the establishment, amend the licence to extend the hours of liquor service, increase the person capacity, or add a patio. Liquor Primary Club Licence There is one sub-category of the liquor primary licence — the “liquor primary club licence” 6 . Section 1 of the Act defines a club as an organization incorporated under the laws of British Columbia that has been in continuous operation for at least one year immediately prior to application for a liquor licence. A club must have at least 50 members who pay annual membership fees of at least $10.00. The main focus of a club must be social, athletic, recreational, fraternal, benevolent or patriotic in nature, but this does not preclude profit-making. A club has its own facilities and does not sublet food or liquor service. Under section 52 of the Regulations, liquor may only be served to club members and invited guests. Guests must be registered along with the accompanying club member. F F Veterans’ clubs are eligible for liquor primary club licences. These currently include the following organizations: the Royal Canadian Legion Army, Navy and Air Force Veterans in Canada War Amputations of Canada The Royal Canadian Air Force Association a chartered branch of any of the organizations listed above British Ex-Servicemen’s Association of Vancouver, and The Royal Canadian Naval Association. 4 Information about Special Occasion Licences can be found in the Special Occasion Licence Policy Manual. Under section 1 of the Liquor Control and Licensing Act, an establishment is defined as a “place or premises that may comply with the requirements of this Act and the regulations …”. The Liquor Control and Licensing Branch has interpreted this section to mean that an establishment must be a physical structure, not just an open space or unbounded piece of property on which a person proposes to serve liquor. 6 Some “special conditions” apply to specific types of liquor primary establishments, including motor vessels, stadiums, concert halls, golf courses, and clubs. Clubs are, however, distinct in being separately defined and categorized in the Act and regulations as a separate sub-category of the liquor primary licence. Since most polices that apply to liquor primary establishments also apply to liquor primary club establishments, the term “liquor primary” also refers to “liquor primary club” throughout this manual unless otherwise specified. 5 SECTION 2 – GENERAL INFORMATION Page 6 Liquor Licensing Policy Manual Under section 29 of the Act, a chartered branch of a veterans’ club is not entitled to apply for, obtain or hold a liquor licence while it is not in good standing with the central organization. Food Primary Licence Section 11 of the Liquor Control and Licensing Regulations requires that the emphasis of a food primary licensed establishment be the service of food 7 . Liquor may not be served unless the establishment is open for the service of a variety of menu items, including both appetizers and entrees or some equivalent. Restaurants can remain open 24 hours a day but, subject to the hours endorsed on the licence, liquor service may only be available between the hours of 9:00 and 4:00 a.m. Under section 53(3) of the Regulations, the input of local government or First Nations is required if the establishment intends to provide liquor service after 12:00 midnight. Their input is also required when patron participation entertainment is proposed. F F As of December 2002, restaurants — with a capacity of 50 persons or more — may apply to have a lounge area in which patrons can obtain liquor service. The customer may or may not order food after being served liquor in a restaurant lounge, but food service must nevertheless be available to customers in the lounge. There are set limits on the seating capacity in these areas. They may be up to 20% of the person capacity of the interior areas of the restaurant to which the principal food primary licence applies, or up to 40 persons, whichever is the lesser. In some instances, a restaurant may have more than one lounge area, one inside and one outside on a patio. If both lounge areas are in use at one time, however, the total number of persons occupying these areas must not exceed the capacity limits fixed in the regulations. In order to qualify for and maintain a food primary licence, a restaurant must have the features that distinguish it as an establishment primarily in the business of food service. General characteristics that distinguish a food primary establishment include: kitchen equipment suitable for preparation of menu items tables, chairs, counters and/or stools, and lighting adequate for dining adequate supply of flatware, china and other table accessories menu containing a varied selection of food items, including both appetizers and entrees or a similar range of offerings games or entertainment accompany or complement dining advertisements refer to the establishment as a place for dining hours of operation are in keeping with the dining habits of the clientele expected, and financial records, staff complement, and the receipts showing ratio of food sales to liquor sales are typical of an establishment in which the major focus is food service. The capacity to manage and control the licensed area is an important consideration in granting a liquor licence. Largely because of the complications in meeting this and other licensing requirements, some eating establishments have been identified as generally not eligible for food primary licences, including: mall “food fairs”, as the dining space is not defined or controlled by any single food outlet restaurants primarily oriented to take-out service stand-alone banquet rooms without fully equipped kitchens, such as a banquet room that is not an extension of a licensed restaurant, and mobile food providers, such as hot dog vendors. 7 The definition of an establishment as a physical structure is also important in the licensing of food primary licensed establishments (see footnote on previous page). SECTION 2 – GENERAL INFORMATION Page 7 Liquor Licensing Policy Manual Licensee Retail Store Licence A licensee retail store (LRS) licence is issued to the owners of stores selling liquor for consumption off the premises. Details on the LRS licence are provided in section 15. Wine Store Licence There are several different types of wine stores, designed to promote the BC wine industry. Details on wine store licences are provided in section 16. Catering Licence A catering licence enables catering companies to provide a full range of food and beverage services to their local, out of province, or international clients. Licensed caterers can purchase, transport, and sell liquor, and may maintain a liquor inventory. Revised February 2013 When a caterer provides the liquor at a catered event, the host of the catered event is not required to obtain a special occasion licence. Catered events encompass a wider range of business events than are currently eligible under the special occasion licence program. These differences reflect the fact that caterers will have an ongoing licence, be knowledgeable about the process and event terms and conditions, and have experience running responsible events. As well, catered events, by their nature, have different characteristics than some special occasion licensed events: a different clientele and a stronger food component. A Caterer must obtain Branch approval prior to each catered event, and in some cases may also require local government approval. Notice of all catered events must be provided to local police. Caterers may also serve liquor at residential events. UBrew/UVin Licence The UBrew/UVin licence is issued to establishments providing supplies, facilities, and/or services to people making their own wine, beer, cider, or wine coolers. The Liquor Control and Licensing Act and regulations set out a range of terms and conditions pertaining to this licence, including: the respective roles of UBrew and UVin licensees and their customers; how the customer’s ingredients and product are to be stored on the premises; and special record keeping and reporting requirements. These terms and conditions are designed to ensure that UBrew and UVin licensees, their staff, and their customers do not become manufacturers or vendors of liquor. Rather, licensees only supply ingredients and/or assist customers through the fermentation or brewing process, so long as the end product is for the customer’s own private use. Manufacturer Licence Wineries, breweries, and distilleries that produce or manufacture liquor for sale and, typically, for consumption off the premises, are required to have a manufacturer licence. A licensed manufacturer may also operate a tasting room at the manufacturing site where product samples may be offered to the public. In addition to operating a retail store and tasting room, manufacturers can apply for endorsements to operate a lounge and/or separate areas designated for special events, picnics and tours which permits consumption of liquor on site. SECTION 2 – GENERAL INFORMATION Page 8 Liquor Licensing Policy Manual SECTION 3: Licensing Process 3.0 Introduction During the licensing process, information is gathered about both applicants and their proposed licensed establishments to determine whether they meet liquor licensing criteria. The process also allows applicants to understand and make certain commitments about the terms and conditions by which they may be licensed. For new liquor primary applications — and for certain types of endorsements or amendments to existing licences — the licensing process also contains a public input phase. There are four distinct stages in the licensing process for liquor primary applications, and three for food primary, UBrew/UVin, agent, manufacturer, and catering applications. Additionally, processes have been established for licence amendments, re-applying to license an establishment on a site that was previously refused, and annual renewals. This chapter contains a section on the policies for each of the stages of licensing and for the amendment, re-application, and renewal processes, organized under the following headings: Stage 1: Application for a New Licence Stage 2: Applicant Eligibility Assessment Stage 3: Site and Community Assessment (Liquor Primary, Manufacturer Lounge, and Special Event Endorsement Areas) Stage 4: Building Assessment and Issue of a Licence Licensing Approval Process Flowcharts (Liquor Primary and Food Primary) Licence Amendments Re-Application, and Licence Renewals. LCLB policy sets limits on the time that applicants may take to move liquor licence applications through the licensing process. This ensures that applications make reasonable progress through the steps of the licensing process so that establishments become licensed in a timely manner. Setting time limits also has the effect of reducing uncertainty in the marketplace when many licence applicants are vying for establishment locations and seeking local government zoning or other approvals. For information on the licensing process specific to catering licences, see section 14.3. For information on the licensing process specific to UBrew/UVin licences, see section 18.2.2. 3.1 Stage 1: Application for a New Licence Policy Rationale Preparing a complete application for a new licence is the first step in the licensing process. 1 The documentation provided at this early stage is the foundation upon which the entire licensing process is based. F F For the most part, the information the applicant must submit at the time of application is for the purposes of assessing whether the basic criteria for licensing are met. 2 Other information is acquired in order to meet the administrative needs of processing the licence application, in particular, the requirements for a complete application. F 1 2 F A brief overview of the steps in the licensing process can be found in the introduction to this chapter. See next section, Stage 2: Applicant Eligibility Assessment, for a discussion of these requirements. SECTION 3 – LICENSING PROCESS Page 1 Liquor Licensing Policy Manual Policies 3.1.1 Assessment of primary operating purpose in a liquor primary licence application Upon receipt of an application for a liquor primary licence, licensing staff will determine whether the business carried on in the proposed licensed establishment is beverage service, entertainment or hospitality. An application from the following establishments will be returned to the applicant as not eligible for a liquor primary licence: A facility not primarily engaged in beverage service, entertainment or hospitality; A facility frequented predominantly by or directed at minors and other young persons; A restaurant; A take-away service; A motor vehicle; and A video games arcade. [Liquor Control and Licensing Regulations, section 8(1)] 3.1.2. Assessment of primary operating purpose in a food primary licence application Upon receipt of an application for a food primary licence, licensing staff will determine whether the business carried on in the proposed licensed establishment is primarily food service during all hours of its operation. Since effective management and control of the proposed licensed area cannot be assured, applications from the following establishments are not eligible for a food primary licence: Mall “food fairs”, or establishments where the dining space is not defined or controlled by any single food outlet; Restaurants primarily oriented to take-out service; Stand-alone banquet rooms without fully equipped kitchens, including banquet rooms that are not an extension of a licensed food primary establishment; and Mobile food providers, including hot dog and other street vendors offering food service. [Liquor Control and Licensing Regulations, section 11(1), Liquor Control and Licensing Branch Policy] 3.1.3. Complete application An application will be recognized as complete only when all required documentation is received. Section 15(1) of the Liquor Control and Licensing Act states that “an application for a new licence or a renewal, transfer or amendment of a licence must be in the form approved by the general manager and must be accompanied by the prescribed fee.” Application fees are prescribed in schedule 1 of the regulations. [Liquor Control and Licensing Act, section 15(1), Liquor Control and Licensing Regulations, Schedule 1] 3.1.4. Incomplete application If an application is found to be incomplete, contains documents that are incomplete or unacceptable, or both, the applicant will be notified of the documents required to complete the application. Applications will not be processed until all documentation has been: Received in LCLB Headquarters; and Found to be satisfactorily completed. [Liquor Control and Licensing Act, section 15(1), Liquor Control and Licensing Branch Policy] 3.1.5. Criminal record search requirements For the purposes of policy 3.1.3, a Personal History Summary and Consent for Criminal Record Search form and the RCMP’s Consent for Disclosure of Criminal Record Information form are required SECTION 3 – LICENSING PROCESS Page 2 Liquor Licensing Policy Manual documents for all individuals except individuals holding less than 10% voting shares or holding only nonvoting shares in the applicant company. Individuals holding less than 10% voting shares or holding only non-voting shares in the applicant company are required to provide only their full legal name and date of birth at the time of application. However, the general manager may, at any time, require any and all shareholders to undergo a criminal record check. An application may not be considered complete until the required information is received from all individuals. Where convictions or discharges are indicated, or where the branch receives information regarding the same, a verifiable record from the appropriate police authority is required unless the general manager indicates that a statutory declaration is sufficient. A decision maker will generally not consider an application until all required records of criminal conviction have been received and reviewed. [Liquor Control and Licensing Act, section 16(2), Liquor Control and Licensing Branch Policy] 3.1.6. 45-Day Retention Period for Incomplete Applications An incomplete application package will be held for a maximum of forty-five (45) calendar days to await receipt of any outstanding application documentation. If still incomplete after the 45-day period, the application may be terminated. This time period may be extended at the discretion of the licensing staff. The application fee is non-refundable. [Liquor Control and Licensing Branch Policy] 3.1.7. False information in an application If an applicant appears to have: Failed to disclose a material fact; Provided a false statement; or Provided a misleading statement in an application, the general manager will consider the facts and decide if the application should be terminated. [Liquor Control and Licensing Act, section 15(2)] 3.1.8. Written acknowledgment of complete application Complete applications will be acknowledged in writing, only after being satisfied that all documents have been properly completed and are acceptable. Although an acknowledgment letter may be issued on a later date, it will include the date and time that the application was accepted as complete. [Liquor Control and Licensing Act, section 15(1), Liquor Control and Licensing Branch Policy] 3.1.9. Written acknowledgment of name and sign approval Name and sign approval will be acknowledged in writing, only after being satisfied that the proposed establishment name and sign sketch are acceptable 3 . The acknowledgement will form part of the written acknowledgement of a complete application. F F [Liquor Control and Licensing Act, sections 45(2), 49 (3), and 51.1; Liquor Control and Licensing Branch Policy] 3 See chapter on Advertising and Signage for policies governing names and signs. SECTION 3 – LICENSING PROCESS Page 3 Liquor Licensing Policy Manual 3.2 Stage 2: Applicant Eligibility Assessment Policy Rationale Once all the necessary documentation has been received and the application is considered to be “complete” 4 , applications are screened to ensure the applicant meets the basic eligibility requirements. The first of these is an assessment of applicant 5 suitability — that is, a determination of whether the applicant is a “fit and proper person”. In assessing applicant suitability, the general manager is looking for anything that might indicate the person may fail to comply with the terms and conditions of a liquor licence. F F F F Under certain circumstances, such as if the licensee does not reside in British Columbia or will not be present to manage the establishment on a day to day basis, the licensee may engage another party to operate or manage the establishment. The licensee may choose to engage a resident manager or third party operator to run the business. Although neither of these management arrangements removes legal liability from the licensee, a third party operator or resident manager is subject to the same “fit and proper” criteria as mentioned above. Next, there is a determination of whether the applicant meets the residency and age requirements. The purpose of the residency requirement is to ensure that the person responsible for the operation of the licensed establishment is physically present to oversee its operation. Another consideration is whether the applicant meets the requirements of business ownership and valid property interest. Finally, the applicant eligibility assessment involves a determination of whether the applicant has any connection or agreement (referred to as a “tied house”) with a liquor manufacturer or their agent or the owner of a UBrew/UVin. Policies 3.2.1. Criteria for applicant eligibility In determining whether a licence should be issued, renewed or transferred, consideration shall be given to whether the criteria for applicant eligibility have been met. The applicant eligibility criteria include the following factors: Applicant suitability; Residency and age requirements; Business ownership and valid property interest; and The existence of an unlawful connection or agreement with a liquor manufacturer or a UBrew/UVin licensee. [Liquor Control and Licensing Act, sections 16(1) through (5), and 18] 3.2.2. Consideration of applicant suitability In assessing whether an applicant is a fit and proper person who is suitable to hold a liquor licence, the general manager must consider convictions under the laws of Canada or a province or the bylaws of a municipality or regional district in British Columbia. In practice, this entails a criminal records check and consideration of any records showing that the applicant has previously not complied with the requirements of the Liquor Control and Licensing Act or the Regulations. 4 See previous section in this chapter, 3.1 Application for a New Licence, regarding complete applications. The applicant includes: sole proprietors, all partners in a partnership (including silent partners), all executive officers and directors of a public corporation or society, anyone with a 10% or greater interest in a private corporation or a private holding company, the resident manager or third party operating a business, the branch president and resident agent/manager under a liquor primary club licence, the manager for a governmentowned establishment, all trustees, including those acting on behalf of a minor, if the minor holds a 10% or greater interest in the business to be licensed, and executors or administrators appointed when a licensee dies. 5 SECTION 3 – LICENSING PROCESS Page 4 Liquor Licensing Policy Manual The general manager may also consider: Administrative penalties levied against the person under a law of Canada or a province; The financial integrity of the person; and Any other factors the general manager believes are relevant to the consideration. Examples of the “other factors” that the general manager may consider include, but are not limited to: a. Any previous or pending charges under the laws of Canada or any province or the bylaws of a municipality or regional district in British Columbia; b. Any previous or pending charges and also any previous discharges or convictions under the laws of any foreign country, or the laws or bylaws of any foreign provincial, state or local government, c. Convictions or charges that involve, but are not limited to, the abuse of alcohol or other addictive substances; d. Driving infractions where there is an indication that an abuse of alcohol was a factor; e. Flagrant disregard or persistent infractions of local bylaws that suggest that the individual is unlikely to be sensitive to local concerns or ensure their establishment meets local government requirements; f. A poor enforcement record with regards to a licensed establishment, in particular when the compliance history leads the general manager to believe that the individual may not operate the establishment in a manner consistent with the public interest; g. Failure to provide documents requested by the branch in a timely manner, failure to fully cooperate during the course of enquiries, or failure to disclose a relevant fact on an application, h. Whether the person is of good reputation and character or has a history of behaviour that would render him or her unsuitable to hold a licence; i. Whether the person is involved in criminal activities or associated 6 with someone involved in criminal activities; j. Whether the person is a member of, or associated with a member of, an organized crime group, k. The source of the applicant or licensee’s funding for the business and whether that funding is connected to, or associated in any way with, a criminal source; l. Whether all funding sources for the business can be confirmed as legitimate; m. Information that the person might not observe the terms and conditions of a liquor licence or operate the establishment in a manner consistent with the responsibilities described in the branch’s Responsible Beverage Service Program; n. The individual has demonstrated a disregard for, or lack of awareness of, the legal and social responsibilities of a licensee, including but not limited to areas such as employment and tax law, o. The individual has been involved in selling liquor without a licence; p. The applicant is not at arm’s length from the licensee of a problematic establishment; q. The proposed location of the establishment has been problematic for previous licensees; and F 6 F “associate” in relation to a licensee, responsible person, approval holder or applicant for a licence or an approval, means (a) any person that has a financial interest in the licensee, applicant, approval holder or responsible person (b) any person that has a financial interest in the licensee’s, applicant’s or approval holder’s business (c) any person that has a financial interest in the premises to which the licence or application relates (d) if the licensee, applicant, approval holder or responsible person has a financial interest in another business or premises, any other person with a financial interest in that business or premises (e) if the licensee, applicant, approval holder or responsible person is an individual, who is (i) the spouse of the individual (ii) any relative of the individual or the spouse referred to in subparagraph (i) (iii) any corporation if the individual has a financial interest in the corporation, or is a director or officer of the corporation (iv) any other officers, directors or persons with a financial interest in the corporation referred to in subparagraph (iii) (v) any other corporation that has a financial interest in the corporation referred to in subparagraph (iii), the other corporation’s officers and directors and any person that has a financial interest in the other corporation (f) if the licensee, applicant, approval holder or responsible person is a corporation, any other corporation that has a financial interest in the corporation, the other corporation’s officers and directors and any person that has a financial interest in the other corporation SECTION 3 – LICENSING PROCESS Page 5 Liquor Licensing Policy Manual r. The general manager has concerns about the individual’s financial integrity or lack of experience in the industry. In general, the information required for a suitability decision is available to licensing staff through the routine processing of an individual’s application. However, on those occasions when licensing staff learn that factors g through q above may be present, they will bring the case to the attention of their supervisor for referral to the manager of investigations for a more comprehensive investigation or background check. [Liquor Control and Licensing Act, section 16(2)(a) and (b)] 3.2.3. Consideration of residency and age requirements Minors (under the age of 19 years) are not eligible to apply for or hold a liquor licence in British Columbia. In assessing whether an applicant is eligible for a liquor licence, licensing staff will give consideration to whether the applicant is: A person who is a resident of British Columbia, or a Canadian citizen or a landed immigrant7; or A partnership, of which each member is a resident of British Columbia, or a Canadian citizen, or a landed immigrant; or A corporation whose agent or manager selected by the corporation to carry on its business in the licensed establishment is a resident of British Columbia, or a Canadian citizen or a landed immigrant. The requirement for residency is generally considered to be satisfied if an individual maintains a residence, with a mailing address, in British Columbia during the time of application and for as long as the individual holds the licence. [Liquor Control and Licensing Act, section 16(5)] 3.2.4. Consideration of business ownership and valid property interest In assessing whether an applicant is eligible for a liquor licence, licensing staff will give consideration to whether the applicant is the owner of the business carried on at the establishment to which the licence relates, and whether the applicant : Is the owner of the establishment (i.e. property and building(s) to which the licence relates; or Is the lessee of the establishment under a lease that does not expire for at least twelve (12) months from the date the licence is issued; or In respect of the initial application for a new licence or transfer of an existing licence, holds an assignment or offer of lease pertaining to the property and buildings (the assignment or offer of lease is acceptable documentation at the initial application stage; however, a licence will not be issued or transferred until the applicant has a fully executed lease or title document that covers a 12 month period from the final date of issue or transfer); or In respect of a purchase in progress, possesses an offer or option to purchase the establishment (the offer or option to purchase is acceptable documentation at the initial application stage; however, a licence will not be issued or transferred until the applicant has a fully executed title document); or In respect of the renewal of a licence, has provided evidence that the licensee is the lessee of the establishment under a lease of a duration that is satisfactory to the general manager; or 7 A landed immigrant is a person lawfully admitted to Canada under the Immigration and Refugee Protection Act for permanent residence SECTION 3 – LICENSING PROCESS Page 6 Liquor Licensing Policy Manual In respect of the issue of licence for a motor vessel, has docking privileges for a period not less than twelve (12) months; or In respect of the renewal of a licence for a motor vessel, has provided evidence of docking privileges of a duration that is satisfactory to the general manager. [Liquor Control and Licensing Act, sections 16(1)(b) and (c), and 16(3); Liquor Control and Licensing Act Regulations, sections 4(1) and 4(2); Liquor Control and Licensing Branch Policy] 3.2.5. Consideration of tied house circumstances A tied house is an establishment that has an association, financial or otherwise, with a licensed liquor manufacturer or agent that is likely to lead to its products being favoured for sale. A tied house relationship between a manufacturer/agent and a licensed establishment exists where they are associated in one of the following ways: Where the manufacturer/agent has any amount of ownership interest in the licensed establishment (LP, FP, LRS, business location of a caterer, or wine store); OR Where the manufacturer/agent operates the establishment under a third party operator agreement; OR Where the manufacturer/agent has an immediate family member who either owns the establishment or is the third party operator of the licensed establishment. Immediate family members include spouses, parents, siblings and children only. Any other family members are not considered immediate family and are not considered a tie. An employee of a licensed establishment or manufacturer/agent (e.g. a resident manager, a marketing representative of a manufacturer) is not considered to be in a tied house relationship with that licensee or manufacturer. Ubrew/UVin licensees are not permitted to have an association with any other licensed establishment or any manufacturer/agent, unless the relationship was grandfathered under the Liquor Control and Licensing Act [s. 18(1.3)(a)]. Revised October 2013 In assessing whether an applicant is eligible for a liquor licence, licensing staff will give consideration to whether the applicant has any connection or agreement with a licensed liquor manufacturer, agent or a UBrew/UVin licensee. This includes circumstances in which: A person has agreed or arranged with another to sell the liquor of a manufacturer to the exclusion of the liquor of another manufacturer; A liquor manufacturer or the manufacturer's agent, or a person who is so associated with, connected with or financially interested in them, is likely to promote the sale of liquor for that manufacturer or agent; A person applying for or holding a UBrew or UVin licence is associated with, connected with or financially interested in a person holding a liquor primary, food primary, licensee retail store, wine store, catering, or manufacturers licence; or A person applying for or holding a liquor primary, food primary, licensee retail store, wine store catering, or manufacturer’s licence is associated with, connected with or financially interested in a person holding a UBrew or UVin licence. Where an association, connection, or financial interest exists between a manufacturer and an establishment not operated in conjunction with and at the same site as the manufacturer, the manufacturer and the licensee of the establishment must disclose the relationship to the general manager. Upon receipt of a statement disclosing the relationship between a manufacturer or agent and a licensed establishment, the general manager will: SECTION 3 – LICENSING PROCESS Page 7 Liquor Licensing Policy Manual Revised October 2013 Assess the nature of the relationship;and Make a determination about whether the licensee is likely to promote the sale of the manufacturer’s or agent’s liquor products. If the general manager determines that the manufacturer or agent has an ownership interest in the licensed establishment or is likely to promote the sale of the manufacturer’s or agent’s liquor products, the general manager shall not permit the manufacturer’s or agent’s product to be purchased and sold by that licensed establishment. In general, product exclusivity is not permitted and products must be made as widely available as possible to all licensees, taking into account the reasonable constraints of production volumes and delivery costs. The general principle is that manufacturers may not provide a particular liquor product exclusively to one or a limited number of other establishments to which they are not tied. Revised January 2014 Manufacturers may provide certain customers with private label products, but in order to prevent this practice from becoming a mechanism to provide certain preferred customers with a price discount, manufacturers are required to make a reasonable quantity of comparable product at comparable prices available to all licensees. Limited run specialty products may be produced either on the initiative of the manufacturer or at the request of a licensee, and may be made available only to particular licensees without offering a comparable product. Such products must be genuinely special products not normally produced by the manufacturer. Because these specialty products are produced by exception they are exempted from the requirement to offer a comparable product to other licensees. There are certain circumstances under which tied house arrangements are permitted. Where a tied house relationship is permitted, the establishment may sell the products of the associated manufacturer. These are described in the following sections. [Liquor Control and Licensing Act, section 18; Liquor Control and Licensing Regulation, section 50] 3.2.5.1 Tied house exemption for small and medium volume manufacturers Small and medium volume liquor manufacturers may apply to have a tied house association with up to three licensed establishments (per manufacturer’s licence) located away from the manufacturing site where that manufacturer’s liquor may be sold. The associated off-site establishments may be any type of establishment licensed under section 12 of the Act (including a food primary, liquor primary, retail store, or business location of a caterer). To qualify for this exemption, manufacturer annual production volumes under a British Columbia manufacturer’s licence must not exceed: 100,000L for a distillery; 750,000L for a winery; and 300,000 hectolitres for a brewery. In addition, the manufacturer must either: have an ownership interest in the licensed establishment, operate the establishment under a third party operator agreement, or have a relationship with the licensed establishment, through a family member who either owns the establishment or is the third party operator of the establishment. Manufacturers will report production volumes as part of the application process. Manufacturers who qualify for off-site establishments under these limits but expand future production beyond these limits SECTION 3 – LICENSING PROCESS Page 8 Liquor Licensing Policy Manual will no longer be eligible to apply for additional new off-site tied house establishments but may keep any off-site tied house establishments that were previously approved. Where a tied house exemption has been approved, the licensee’s business relationship with the associated manufacturer is also exempted from the inducement restrictions of the Act. The licensee may promote the sale of the associated manufacturer’s liquor and may enter into business agreements with that manufacturer that are not otherwise permitted (for details, see section 12.1.1). All off-site licensed establishments where the manufacturer’s liquor may be sold are required to sell a range of products from a variety of manufacturers that are not associated with or connected with each other. Revised January 2014 A manufacturer in a tied house relationship with an off-site licensed establishment may not provide a particular liquor product exclusively to that establishment or other tied establishments unless otherwise approved by the General Manager. Generally speaking, the exclusive sale of a product to a tied establishment will only be permitted in situations where the product is produced in such small quantities that it is not reasonable to make it available for purchase by other licensees (for more detail on exclusivity, please refer to s. 3.2.5). For requirements for caterers please see section 14.4.10. [Liquor Control and Licensing Act, sections 18 and 45, Liquor Control and Licensing Regulation sections 50(2)(e) and (g) and 50(2.1)] 3.2.5.2 Tied house exemption for on-site manufacturers’ establishments All manufacturers are eligible for an exemption to the tied house prohibition to allow them to have any type and any number of on-site licensed establishments, where their liquor may be sold. Product produced on-site from the manufacturer may be sold at any of these establishments, provided all the establishments are owned and operated by the exact same licensee as the manufacturer and are located at the same site as the manufacturing facility. [Liquor Control and Licensing Act, section 18(3) and (4), Liquor Control and Licensing Regulation, section 50(2)(e), (f) and (g)] 3.2.5.3 Tied house exemption for winery-operated wine stores Licensees who hold a wine store licence and a winery licence are exempt from the tied house prohibition for those wine stores owned by the manufacturer but located away from the manufacturing site. They may only sell the wine manufactured by the commonly owned winery. [Liquor Control and Licensing Act, section 18(4), Liquor Control and Licensing Regulation, section 50(2)(d)] 3.2.5.4 Tied house exemption for stadiums and concert halls Stadiums and concert halls are eligible for an exemption from the tied-house prohibition that has been developed in recognition of liquor industry sponsorship of sporting and cultural events. A liquor supplier and the liquor primary or food primary licensee of an eligible stadium or concert hall may jointly apply to the general manager for permission to enter into a financial arrangement. Eligible stadiums or concert halls will be primarily oriented to provincial, national or international events, involving adults or professionals, and: in the case of a stadium, have a minimum of 5,000 permanent fixed seats (or lower if approved by the General Manager), and in the case of a concert hall, have a minimum of 1,500 permanent fixed seats. SECTION 3 – LICENSING PROCESS Page 9 Liquor Licensing Policy Manual If approved, and subject to such other terms and conditions as the general manager may impose, the exemption may permit an arrangement in which up to 90% of a designated category of liquor 8 is from one supplier in exchange for payment from that supplier. The remaining 10% must be purchased from a different supplier or suppliers and may not be subject to this type of financial arrangement. F F An application for an exemption must be made jointly by the liquor supplier and the licensee of the licensed establishment, and must include the following: The proposed terms of the arrangement including the liquor product categories to be impacted; the maximum percentage of sales in that category to which both parties have agreed; Brand or corporate signage to be placed in the establishment; and any other proposed arrangements; The proposed date that the arrangement is to come into effect and, if applicable, its proposed end date; and A proposal for the display throughout the facility of responsible use messaging that is not associated with a liquor supplier. [Liquor Control and Licensing Act, section 12(3)(b); Liquor Control and Licensing Regulations, section 50; Liquor Control and Licensing Branch Policy] 3.2.5.5 Tied house exemption for UBrew/UVins The prohibition against tied houses between UBrew/UVin licensees and holders of agent’s licences, liquor manufacturer licences, or licences issued under section 12 (e.g. food primary, liquor primary, licensee retail store) does not apply to a person: that, on April 1, 2000, held a UBrew/UVin licence and held a liquor manufacturer licence, agents licence, or a licence issued under section 12; and any association, connection or financial interest has not, since that date, expanded in scope or degree. [Liquor Control and Licensing Act, section 18(1.3)] 3.2.6. Eligibility Decisions The general manager will determine whether an application meets the eligibility criteria with respect to suitability, residency and age requirements, business ownership and valid property interest and tied house circumstances. If information is obtained that reveals issues of concern, the individual will be given an opportunity to provide a written submission prior to a decision being made. [Liquor Control and Licensing Act, section 16 and Liquor Control and Licensing Branch Policy] 3.2.7. Suitability Decisions - Fit and Proper Issues The general manager may at any time determine whether an individual is fit and proper to hold a liquor licence. Where information obtained by the general manager reveals issues of concern (see section 3.2.2, above), the individual will be given an opportunity to provide a written submission prior to a decision. [Liquor Control and Licensing Act, section 16 and Liquor Control and Licensing Branch Policy] 3.2.8. Written notification At the conclusion of the applicant eligibility assessment, written notification of the decision will be provided to the applicant indicating: 8 Whether the application has passed the applicant eligibility assessment or been rejected; and If rejected, the reasons for the decision. A designated category of liquor may include any of the following: draught beer, bottled beer, cider and coolers, wine, or spirits. SECTION 3 – LICENSING PROCESS Page 10 Liquor Licensing Policy Manual [Liquor Control and Licensing Branch Policy] 3.2.9. Managing the establishment for the licensee: Resident manager A licensee who does not reside in British Columbia or who will not be present to manage the establishment on a day to day basis must hire an individual to manage the establishment in his or her absence. This individual is considered the resident manager (if the licensee is out of province a resident manager must be hired). The branch may consider an individual a resident manager if the person is employed to carry on the business of the licensee by being primarily responsible for the day to day operation of the establishment. A resident manager may be employed in an executive capacity by the licensee and have responsibilities that generally consist of supervising and/or directing human or other resources. To be officially approved as a resident manager, an individual: Must be an employee of the licensee and be primarily responsible for the day to day operation of the establishment; Must not be in a contractual third party operator agreement with the licensee; Must be a resident of British Columbia9; Must not be a minor (i.e. must be 19 years of age or over); Must be an individual not a corporate entity or partnership; May not assume liability for the overall operation and activities of the establishment on behalf of the licensee; and Is subject to the fit and proper assessment. 3.2.10. Operating the establishment for the licensee: Third party operator A licensee who is not present to manage the establishment on a day to day basis may engage the services of an individual or corporate entity to operate the establishment. This party is considered a third party operator. The third party operator participates in a contractual agreement with the licensee and benefits financially from the arrangement. The third party operator agreement must be in place when a licensee wishes to engage a third party- a proprietorship, corporate entity or partnership- to manage the operation of the licensee’s establishment. A third party operator: Must not be an employee of the licensee; Must be approved by the Liquor Control and Licensing Branch; May not assume accountability for the overall operation of the establishment on behalf of the licensee as the licensee remains responsible for all activities within the licensed establishment; Must not be engaged in the management of a liquor-primary club licence; Must not enter into an agreement or allow another person to use the licence; Must be 19 years of age or over; and Is subject to the fit and proper assessment as individuals. [Liquor Control and Licensing Act, section 17(1) and 17(2)] 9 For residency requirements please see section 3.2.3. SECTION 3 – LICENSING PROCESS Page 11 Liquor Licensing Policy Manual 3.3 Stage 3: Site and Community Assessment Policy Rationale For liquor primary licence applications, manufacturer lounge and special event area endorsements, the next stage in the licensing process is a site and community assessment. 10 The regulations provide for substantial involvement in the liquor licensing process by local governments and First Nations. Essentially, the factors that local governments and First Nations must consider relate to the characteristics of the local community, the likely impact on the community by the proposed licensed establishment, and any additional factors the local government/First Nation may consider relevant and may wish to draw to the attention of the general manager. This process is, then, part of a larger determination of whether granting the application would be “contrary to the public interest” under section 16(3) of the Act. F F The licensing process for manufacturer lounge and special event area endorsements also involves a site and community assessment similar to the liquor-primary process. Most of the policies relating to the site and community assessment address the manner in which notice to local governments and First Nations is to be given, and how the resulting comments and recommendations are to be received and considered. While these policies obviously direct the form and the content of the assessment process, their intent is also to provide a framework for a close working relationship between the Liquor Control and Licensing Branch and local communities. Wise and well-informed liquor licensing decisions depend greatly on the strength of this relationship. For more information on the local government/First Nations role in the licensing process, please refer to the Local Government Guide, available online at: http://www.pssg.gov.bc.ca/lclb/docs-forms/PSSG-LocalGovt-Fst-Nation.pdf. Policies 3.3.1. Site and community assessment of a liquor primary licence, manufacturer lounge, or special event area endorsement application During the site and community assessment, the general manager will determine whether the operation of the proposed establishment at the proposed site is contrary to the public interest. In making this determination, the general manager will consider: The degree of community support for the establishment to be licensed at the proposed site; The impact on the community in the event the establishment is licensed; and Any other factors relating to the site and the community the general manager considers relevant to the public interest. If the general manager determines that the operation of the proposed establishment at the proposed site is not contrary to the public interest, the application will pass the site and community assessment. Also, during the site and community assessment, the general manager may identify features of the establishment or other potential concerns that may warrant additional terms and conditions being added to the licence. The general manager will take such things as the physical layout, location and type of establishment into consideration when determining if additional terms and conditions are necessary. [Liquor Control and Licensing Act, sections 11.1, 11.2, and 16(3); Liquor Control and Licensing Act Regulations, sections 10 and 18, Liquor Control and Licensing Branch Policy] For food primary applications, the community “litmus test” is primarily undertaken locally as part of the zoning and business licensing processes. They are not subject to the same scrutiny from a liquor licensing perspective because the restrictions on the operations of a food primary establishment — such as liquor service only in conjunction with food service — reduce the likelihood of a detrimental impact on the community. 10 SECTION 3 – LICENSING PROCESS Page 12 Liquor Licensing Policy Manual 3.3.2. Notice to a local government or First Nation of an application for a liquor primary licence A liquor licence may not be issued unless, in the prescribed circumstances, the general manager has given the local government or first nation for the area in which the establishment is proposed to be located notice of the licence application. The notice requirement applies to liquor primary and liquor primary club licences11 . Once notice is given, the local government or First Nation must then consider a range of different factors in providing comments or recommendations to the general manager with respect to the licence application. F Unless the local government or First Nation has indicated that it does not wish to receive notice, licensing staff will ensure that a local government or First Nation is notified of an application for a liquor primary licence. The notice will set out the criteria established by regulation that the local government or First Nation must take into account, as follows: The location of the establishment; The proximity of the establishment to other social or recreational facilities and public buildings; The person capacity and hours of the liquor service of the establishment; The number and market focus or clientele of the liquor primary licence establishments within a reasonable distance of the proposed location; The impact of noise on the community in the immediate vicinity of the establishment; and The impact on the community if the application is approved. [Liquor Control and Licensing Act, sections 11.1(1), 11.2(5)(a), and 16(3); Liquor Control and Licensing Regulations, sections 10(1), (2) (3) and (4)] 3.3.3. Notice to a local government or First Nation of an application for a manufacturer lounge or special event area endorsement Unless the local government or First Nation has indicated that it does not wish to receive notice, licensing staff will ensure that a local government or First Nation is notified of an application for a manufacturer lounge or special event area endorsement. The notice will set out the criteria established by regulation that the local government or First Nation must take into account, as follows: The location of the lounge or special event area; The proximity of the lounge or special event area to other social or recreational facilities and public buildings; In the case of a lounge, the person capacity of that lounge; Hours of liquor service of the lounge or special event area; Traffic, noise, parking and zoning; and The impact on the community if the application is approved. [Liquor Control and Licensing Act, section 16(3); Liquor Control and Licensing Regulations, sections 18(8) and 18(9)] 3.3.4. Notice to a local government or First Nation of a subsequent application for a liquor primary licence The requirements to notify local governments or First Nations (see sections 3.3.2 and 3.3.3) remain in effect regardless of whether there is an application in progress within the same jurisdiction and regardless of whether the general manager has received comments respecting the application in progress. If a subsequent application is received within the same jurisdiction, licensing staff will notify local 11 Notice must also be given of applications to amend both food primary and liquor primary licences as well as winery lounge and special event area endorsements under certain circumstances (see section 3.5, Licence Amendments). SECTION 3 – LICENSING PROCESS Page 13 Liquor Licensing Policy Manual governments or First Nations by sending them a list of any other applications in progress for which local government or First Nation comments have not yet been received. If a local government or First Nation has more than one application in progress, they may choose the order in which they assess the applications and provide comments to the general manager. If the local government or First Nation has already provided comments to the general manager regarding an application, the general manager will not accept a decision by the local government or First Nation to rescind those comments due to a subsequent licence application within their jurisdiction. [Liquor Control and Licensing Branch Policy] 3.3.5. Determination of when notice of an application has been received by a local government or First Nation The local government or First Nation receiving notice of an application (see sections 3.3.2 or 3.3.3) must provide comments and recommendations within ninety (90) days of receiving the request, unless the general manager authorizes a further period in writing. For the purposes of calculating the 90-day period in which a response is expected, notification of the local government or First Nation is considered to be effective seven (7) days after being mailed by licensing staff. [Liquor Control and Licensing Regulations, sections 10(6) and 18(12), Liquor Control and Licensing Branch Policy] 3.3.6. Requests for time extensions from local governments or First Nations Should a local government or First Nation request a period of time greater than ninety (90) days in which to provide written comments regarding an application, the general manager may authorize a further period after considering: The reasons for the request; The proposed date by which comments will be provided; Any adverse effects the applicant may experience if a further period is authorized: Whether the circumstances of the delay relate to the specific application under consideration, or whether they suggest a general pattern of delay in respect of all applications in the area; and Such other factors as may be relevant in the public interest. Any further period permitted by the general manager will be authorized in writing. [Liquor Control and Licensing Act Regulations, sections 10(6) and 18(12), Liquor Control and Licensing Branch Policy] 3.3.7. Recommendations on terms and conditions from local governments or First Nations A local government or First Nation may pass a resolution in which approval or support for a licence application is contingent on certain terms and conditions being attached to a liquor licence. Under these circumstances, and if the application otherwise meets the requirements for a liquor licence, the general manager will take the recommendations of the local government or First Nation into consideration in determining the terms and conditions of a licence. [Liquor Control and Licensing Branch Policy] SECTION 3 – LICENSING PROCESS Page 14 Liquor Licensing Policy Manual 3.3.8. Consideration of whether local governments or First Nation took into account all of the criteria The general manager may conclude that the local government or First Nation took into account all of the criteria required by regulation, as in policy 3.3.2 or 3.3.3, if the resolution provides comments on each criterion, or if the comments have been addressed in the staff report and are referenced in the resolution. In the absence of a comment on each criterion, the general manager may conclude that the local government or First Nation did not take into account all of the criteria as required by regulation. [Liquor Control and Licensing Branch Policy] 3.3.9. Consideration of local government or First Nation comments and recommendations relating to an application for a liquor primary licence, manufacturer lounge, or special event endorsement In considering a resolution from a local government or First Nation, the general manager will determine whether the comments and recommendations advanced are consistent with the facts presented or are in any way perverse. This includes a determination of whether the recommendations: Are consistent with public opinion;, Raise a concern about the ratio of establishments to the population served; Reflect consideration of relevant factors related to liquor licensing and not factors unrelated to liquor licensing, such as the economic impact on individual pre-existing licensees; or Are otherwise contrary to the public interest. [Liquor Control and Licensing Act, sections 11.2(1) and 16(3); Liquor Control and Licensing Regulations, section 18(5), Liquor Control and Licensing Branch Policy] 3.3.10. Circumstances under which the local government or First Nation may be asked for an amended resolution If the general manager determines that the resolution from the local government or First Nation does not comment on each criterion, as in policy 3.3.8, the general manager may ask the local government or First Nation for additional information in the form of a new resolution. [Liquor Control and Licensing Branch Policy] 3.3.11. Circumstances under which the general manager will gather the views of residents by referendum If the general manager determines that the recommendations advanced in a resolution are contrary to the public interest, the general manager will give residents of the area an opportunity to provide comments respecting the application by way of a public referendum. Notwithstanding policy 3.3.13 below, if a local government or First Nation does not provide a resolution, or provides a resolution but fails to gather or comment on the views of residents, the general manager may give residents of the area an opportunity to provide comments respecting the application by way of a public referendum. If 60% or more of the residents are in favour of the granting of the licence, the general manager will take into account the criteria set out in policy 3.3.2 or 3.3.3 that a local government or First Nation would otherwise have taken into account and determine whether the application passes the site and community assessment. If less than 60% of the residents are in favour of granting the licence, the application will not pass the site and community assessment. [Liquor Control and Licensing Act, sections 11.2(1) through (4), and 16(3); Liquor Control and Licensing Regulations, sections 18(15) through 18(20), Liquor Control and Licensing Branch Policy] SECTION 3 – LICENSING PROCESS Page 15 Liquor Licensing Policy Manual 3.3.12. Nature of a referendum held to gather the views of residents In the event that a referendum must be held, as in policy 3.3.11, and in order to afford an opportunity for residents of an area to comment on a licence application, the general manager may direct that a referendum be held: In a manner required by the general manager; and At the applicant’s expense. [Liquor Control and Licensing Act, section 11.2(2), Liquor Control and Licensing Regulations, section 18(18)] 3.3.13. Circumstances under which the general manager will gather the views of residents by receiving written comments in response to a public notice of the application If the local government or First Nation: Has indicated that it does not wish to receive notice of an application; Has indicated that it does not wish to provide comments on an application; Does not reply to a notice of an application within ninety (90) days and no extension to the time has been granted; or Provides a resolution but fails to gather or comment on the views of residents in accordance with the regulations; The general manager will generally direct the applicant to give public notice of the application to residents in the area. When determining whether the application passes the site and community assessment, the general manager will take into account the views of residents as well as the criteria set out in policy 3.3.2 or 3.3.3 that a local government or First Nation would otherwise have taken into account. [Liquor Control and Licensing Act, sections 11.2(5) and 16(3); Liquor Control and Licensing Regulations, sections 18(16) through 18(18) Liquor Control and Licensing Branch Policy] 3.3.14. Consideration of resolutions where a local government or First Nation fails to comment on all of the criteria required by regulation Where a local government or First Nation: Provides a resolution that fails to comment on all of the criteria required by the regulations; and Cannot or will not provide a corrected resolution as requested under policy 3.3.10; The general manager may consider any comments provided by the local government or First Nation when taking into account the criteria set out in policy 3.3.2 or 3.3.3. Branch staff will gather information on the outstanding criteria by contacting the responsible local planning department. [Liquor Control and Licensing Act, section 11.1, Liquor Control and Licensing Regulations, section 18, and Liquor Control and Licensing Branch Policy] 3.3.15. Form and manner of public notice of the application In the event that public notice of a licence application must be given, as in policy 3.3.13, reasonable notice is given by: Posting Notice of Intent signs in a form determined by the general manager for thirty (30) days; Placing newspaper advertisements on two (2) occasions in local newspapers to inform the public of the intent to establish a licensed facility or endorsement area at the specific location; and SECTION 3 – LICENSING PROCESS Page 16 Liquor Licensing Policy Manual Such other notification activities as may be approved by the general manager. When a Notice of Intent sign is posted, photographs showing both the wording on the sign and its location on the site will be taken by the licensee and submitted to the branch to ensure that the branch has a permanent record of these aspects of the sign. [Liquor Control and Licensing Act, sections 11.1(2)(c), 11.2(5)(b), and 16(3); Liquor Control and Licensing Regulations, sections 10(4) and 18(18); Liquor Control and Licensing Branch Policy] 3.3.16. Public response radius when giving public notice of the application In the event that public notice of a licence application is being advertised as in policy 3.3.15, residents and businesses within a 0.8 kilometre (one half mile) radius of the proposed site have the opportunity to comment in writing. Where there are few, if any, residents or businesses within this radius, a decision to either increase the public notification radius or waive the requirement may be made by the general manager. The decision will be based on the individual circumstances of each application. Petitions will generally not be considered in ascertaining the residents’ views about an application. Written comments will be accepted for one week following the end of the public notification period. [Liquor Control and Licensing Act, sections 11.1(2)(c), 11.2(5)(b), and 16(3); Liquor Control and Licensing Regulations, sections 10(4) and 18(10); Liquor Control and Licensing Branch Policy] 3.3.17. Written notification of decision following Site and Community Assessment Written notification of the decision at the conclusion of the site and community assessment will be provided to the applicant indicating: Whether the application has passed the site and community assessment or been rejected; and If rejected, the reasons for rejection. The applicant will also be informed of and provided reasons for, any terms and conditions to be added to the licence that are over and above those terms and conditions regularly imposed. The applicant will be given time to respond to the addition of terms and conditions. [Liquor Control and Licensing Branch Policy] 3.3.18. Extension of approval period To permit adequate time for floor plan approval, while at the same time encouraging applicants to move ahead at a reasonable rate, approval at the conclusion of the site and community assessment is valid for six (6) months from the date it is granted. Applicants are expected to submit floor plans, have them approved and receive approval in principle during this six (6) month approval period. In order to keep the site and community assessment current, approval will only be extended beyond this period under justifiable circumstances. An applicant may request an extension of time by writing to the general manager. The general manager may grant a request for a time extension provided the request is received thirty (30) days prior to the expiry of the six (6) month approval period, and if satisfied that: The request is reasonable; The delays giving rise to the request are beyond the applicant’s control; Where a third party is responsible for the delay, a letter from the third party outlining the current status and schedule for completion should accompany the request for extension; and There have been no significant changes in the characteristics of or impacts on the community in the intervening time period. SECTION 3 – LICENSING PROCESS Page 17 Liquor Licensing Policy Manual The onus for obtaining an extension is on the applicant. If an extension request is not received prior to the expiry of the six (6)-month period, the application will be terminated. [Liquor Control and Licensing Branch Policy] 3.3.19. Opting out by local government/First Nation Where a local government/First Nation chooses to opt out of providing comments and recommendations, whether on a specific application or on all applications, they may do so by providing the branch with either a resolution of counsel or a letter from a senior official. In this case, the branch will consider the prescribed criteria and the views of residents required for licensing. [Liquor Control and Licensing Act, section 11.1(5)] 3.4 Stage 4: Building Assessment and Issue of a Licence Policy Rationale The building assessment and, finally, issuing a licence is the last stage in the liquor licensing process for all licence classes 12 . It is at this stage that the plans for a proposed licensed establishment are received, reviewed, and – assuming they meet all relevant criteria – approved. Once approved and the building is constructed according to plan, and provided all the criteria at other stages of the licensing process have also been met, a liquor licence can then be issued. F F As discussed in greater detail in the chapter on Premises, the physical characteristics of an establishment affect how well licensees and their staff can manage areas licensed for the sale and consumption of liquor. Therefore, these characteristics contribute to how well the general manager can perform the duty to “supervise the conduct and operation of licensed establishments” under section 6(c) of the Liquor Control and Licensing Act. This is the principal concern in the building assessment process. In addition to the management and control considerations, however, there are a range of health and safety concerns that the liquor licensing system is either designed to address, or that must be tackled through the joint action of the Liquor Control and Licensing Branch and other provincial and municipal bodies. For this reason, section 5 of the regulations gives the general manager the power to require certain approvals by local government or first nation authorities prior to granting a liquor licence. The section specifies that these include “any applicable zoning approvals”, but they may also include development permits and any other approvals that may be required by local government or First Nation authorities. The primary task at the building assessment stage is, then, reviewing the plans and later inspecting the premises with a view to ensuring that there is compliance with all statutory and policy requirements. Following the policies below, a series of guidelines have been developed to aid in the assessment of plans for most types of licensed establishments at this stage in the licensing process. For the most part, these guidelines speak to how well the physical layout of the building will contribute to the good management of the establishment once it is built. Another important task undertaken at this stage is setting the person capacity of the establishment. Policy relating to this step largely addresses how public interest information — in particular, local community information and the concerns of local government and First Nations — will be dealt with in deciding the person capacity for the proposed licensed establishment. 13 F Following the building assessment — and once the establishment is built — there remain only some administrative tasks and the final observations to ensure that the commitments made so far on paper have been realized in practice. With the exception of licence fee requirements in section 2 of the Liquor 12 13 A brief overview of the steps in the licensing process can be found in the introduction to this chapter. See “Capacity” in chapter 6, “Premises”, for more specific public interest factors that must be taken into account in setting person capacity. SECTION 3 – LICENSING PROCESS Page 18 Liquor Licensing Policy Manual Control and Licensing Regulations, there are no specific provisions in the Act or regulations to guide this final process. There are, primarily, four tasks undertaken. First of all, a liquor inspector inspects the establishment to ensure that the construction is consistent with the approved plans. Second, the terms and conditions of the licence are discussed with the applicant. Third, the administrative requirements for issuing the licence are addressed. And last, the licence itself is issued to the new licensee. Although the key decisions in licensing have already been made before these tasks are undertaken, the importance of these final steps should not be underestimated. It is at this time that a relationship between the liquor inspector and the licensee is established, and the opportunity arises to discuss the practicalities of meeting the terms and conditions of the liquor licence. Often, it is this relationship between the liquor inspector and the licensee, and certainly the degree of understanding the licensee acquires about the operation of the establishment under the licence, that determines whether or not there will be enforcement problems later on. Policies 3.4.1. Consideration of local government and First Nation approvals In assessing whether it would be in the public interest to issue or transfer a liquor licence, the general manager may require evidence of local government or first nation approvals in relation to the establishment, including zoning approvals and any other approvals required by a local government or first nation in relation to the establishment. [Liquor Control and Licensing Regulations, section 5] 3.4.2. Plan requirements for separate licensed areas If the plans indicate that the proposed establishment will be divided, and there is a space between the areas where liquor may not be present, then the plans must indicate these as separate licensed areas. Areas outside the interior establishment, such as a patio, must also be represented in the plan as a separate area. 14 F [Liquor Control and Licensing Branch Policy] 3.4.3. Review of plans for compliance with statutory and policy requirements Licensing staff will review the architectural working drawings to ensure that all statutory and policy requirements have been met in the design of the proposed licensed establishment. If these requirements have been met, licensing staff will advise the applicant that the plans may be presented to local building and fire authorities for approval. [Liquor Control and Licensing Branch Policy] 3.4.4. Marking on plans where liquor may be served and/or consumed Liquor may be served and/or consumed only in the areas of the establishment marked on the floor plan as approved for this purpose, commonly known as the redlined areas 15 . Areas within the redlined area may include: F F Interior stairwells moving from one area of the establishment to another; 14 If an occupant load cannot be determined for a patio, the patio must still be represented on the plans. The patio will become a term and condition on the licence stating that there is approval for a designated patio as indicated on the floor plan. 15 Manufacturer endorsement areas are marked on the floor plans as follows: Lounge – red-lined Special Event Area – purple-lined Picnicking Area – red-lined Tour Area – orange-lined SECTION 3 – LICENSING PROCESS Page 19 Liquor Licensing Policy Manual dance floors Washrooms, provided that a patron does not need to walk through an unlicensed area, such as a hotel lobby, to get to the washroom; and The side of a liquor service bar facing patrons. Areas that cannot be included within the redlined area include: Common areas such as a hotel lobby; A dedicated stage area for entertainers 16 ; and Exterior stairwells. F F [Liquor Control and Licensing Branch Policy] 3.4.5. Review of plans for approval before building construction Once the plans have received local building and/or fire approval for occupant load, applicants are required to submit two (2) sets of architectural working drawings or plans of the proposed licensed establishment for branch review. Upon receipt of the plans, licensing staff will examine the plans to confirm that: The plans contain the necessary detail; Square metres and person capacity details (patrons plus staff) are noted on the plan for each separate area to be licensed 17; Approval has been given by local fire and/or building authorities; and The plans continue to meet branch policy. F The plans may then be examined against established guidelines for plans approval 18 to determine whether they conform to the requirements of the liquor licence for which the applicant has applied. F F [Liquor Control and Licensing Branch Policy] 3.4.6. Setting person capacity during the original licence application19 After building and/or fire authorities have approved the plans for occupant load, the general manager must set the person capacity of the establishment having regard to the: Public interest 20; Views of a local government or First Nation, if provided; Person capacity requested by the applicant in the original application; and Views of the applicant if the local government or First Nation has recommended a person capacity less than that proposed by the applicant. F Licensing staff will identify any discrepancies between the occupant load determined by local building and fire authorities and the capacity figure supported by the local government or First Nation. The general manager may consider the following options in setting the person capacity: A “dedicated stage area” is distinguished here from an area that is not visually distinct from the rest of the establishment and where entertainers may, at various times, entertain. Professional entertainers may consume liquor while on stage provided they do not become intoxicated. 17 In some instances the square metres and person capacity details may not be available for each area of the establishment to be licensed, for example, when the separation between the areas is not defined by a wall or other solid fixture. Under these circumstances, licensing staff may need to request additional information from the applicant in order to ascertain the applicant’s plans for separation between the areas. 18 See guidelines later in this section for information on what to look for in reviewing plans submitted by the applicant. 19 See the section on “Capacity” in chapter 6, “Premises”, for more information about the person capacity of licensed establishments. 20 See “Capacity” in chapter 6, “Premises”, for more specific public interest factors that must be taken into account in setting person capacity. 16 SECTION 3 – LICENSING PROCESS Page 20 Liquor Licensing Policy Manual Capacity Figure Considered and Supported by the Local Government or First Nation Relative to the Occupant Load Determined by Local Building and Fire Authorities (a) capacity supported by local government or First Nation = occupant load General Manager’s Options in Setting the Person Capacity • • capacity supported by local government or First Nation > occupant load • • capacity supported by local government or First Nation < occupant load • set the person capacity at a figure equal to the occupant load, and equal to that considered and supported by the local government or First Nation set the person capacity at a figure equal to the occupant load, and at a figure reduced from that supported by the local government or First Nation determine if the capacity supported by local government or First Nation is in the public interest; • if deemed to be in the public interest, then will not set the person capacity, and will ascertain whether the applicant wishes to • refer the application back to the local government or First Nation with a request that it be reconsidered and a new resolution issued to address the discrepancy, or • redesign the building in such a way that the occupant load will be equal to the capacity figure supported by the local government or First Nation • if deemed not to be in the public interest, then may • set the person capacity at a figure equal to the occupant load, or • set the person capacity at a figure less than the occupant load, and require that the applicant redesign the building in such a way that the occupant load will be equal to this person capacity [Liquor Control and Licensing Regulations, sections 6(1) through (3), Liquor Control and Licensing Branch Policy] 3.4.7. Bylaw limiting person capacity A local government or First Nation may pass a bylaw limiting the capacity of a licensed establishment, without reference to either the occupant load of the establishment or the person capacity determined by the general manager. Where the bylaw capacity is less than the person capacity set by the general manager for a licensed establishment, enforcement of the bylaw capacity shall be the responsibility of the local government or First Nation. [Liquor Control and Licensing Branch Policy] SECTION 3 – LICENSING PROCESS Page 21 Liquor Licensing Policy Manual 3.4.8. Notification of decision If approval of the plans is not granted: The applicant will be notified in writing and will be given the reasons why the plans were rejected, One copy of the plans will be returned; and The applicant will be advised that they may revise and resubmit the plans before the expiry date given at the conclusion of the site and community assessment. If approval of the plans is granted: The liquor consumption area will be yellow-lined on the floor plan; The plans that have been approved will be stamped as approved; and The plans will be returned to the applicant with instructions that construction may proceed, subject to any local approvals or permits that may be required. [Liquor Control and Licensing Regulations, section 5; Liquor Control and Licensing Branch Policy] 3.4.9. Extension of approval period To permit adequate time for construction, while at the same time encouraging applicants to move ahead at a reasonable rate, approval in principle is valid for twelve (12) months from the date it is granted. Applicants are expected to construct, have the final inspection, and complete the licensing process during this twelve (12) month approval period. In order to keep the approval in principle current, approval will only be extended beyond this period under justifiable circumstances. An applicant may request an extension of time by writing to the general manager. The general manager may grant a request for a time extension provided the request is received thirty (30) days prior to the expiry of the twelve (12) month approval period, and if satisfied that: The request is reasonable; The delays giving rise to the request are beyond the applicant’s control; Where a third party is responsible for the delay, a letter from the third party outlining the current status and schedule for completion should accompany the request for extension; and There have been no significant changes in the characteristics of or impacts on the community in the intervening time period. The onus for obtaining an extension is on the applicant. If an extension request is not received prior to the expiry of the twelve (12)-month period, the application will be terminated. [Liquor Control and Licensing Branch Policy] 3.4.10. Inspection of premises Upon notification from the applicant that all construction or building alterations are complete, the local liquor inspector will: Inspect the premises to ensure compliance with the approved floor plans and with all statutory or policy requirements; Take photographs to show the interior design of the premises and exterior signs; Confirm the outline of the liquor consumption area on the floor plans; and Advise the applicants that terms and conditions may be added to the licence to ensure that the establishment complies with regulatory and policy requirements and identify potential concerns that may warrant additional terms and conditions being added to the licence (if not already identified during the site and community assessment). [Liquor Control and Licensing Branch Policy] SECTION 3 – LICENSING PROCESS Page 22 Liquor Licensing Policy Manual 3.4.11. Review of licence terms and conditions The local liquor inspector will review the terms and conditions of the liquor licence with the applicant At the time of inspection; or In an information session for applicants, held as soon as possible after the inspection. [Liquor Control and Licensing Branch Policy] 3.4.12. Final administrative requirements At the time of inspection or at the information session, the local liquor inspector will obtain the licensee’s signature on the Inspection Interview Information Sheet, and inform the applicant that they must forward the appropriate licence fee by way of any of the payment options made available by the branch to the Liquor Control and Licensing Branch Headquarters in Victoria. All licensing requirements must be met at the time of final inspection or the licence will not be issued. [Liquor Control and Licensing Branch Policy] 3.4.13. Licence notification When a new licence number is issued, licensing staff will advise the appropriate persons or authorities, as follows: The applicant; The local police; In respect of a liquor primary licence, the local government or First Nation in the area where the licensed establishment is to be located; and The local liquor inspector. [Liquor Control and Licensing Branch Policy] Plans Approval Guidelines Plans approval guidelines for liquor primary licensing Identify scale, occupant loads, and consistency with size in the original application. Identify primary features (kitchen/food supply, liquor service bar, outdoor patios, stages, dance floors, entertainment, props, games and washrooms). Review plans for conformity with patio policy. Review plans for conformity with adjoining restaurant, adjoining unlicensed areas or other businesses, and other use policies. Require side wall section drawings as necessary. Review for point of “off sales” (where permitted) and line of sight from liquor service bars throughout the licensed areas. Identify and outline in yellow the areas where liquor will be sold, served and consumed. Plans approval guidelines for food primary licensing Identify scale, occupant loads, and consistency with size in the original application. Identify primary features (kitchen, dining areas, outdoor patios, washrooms, liquor service bars, food service bars, lounge areas, and banquet rooms). Review layout for consistency with food primary licence characteristics. Review plans for conformity with entertainment policies [video, stages, dance floors (size/location), entertainment (karaoke, comedy, etc.), and games]. Review kitchen and equipment to ensure consistency with food primary licence. Review plans for conformity with adjoining liquor primary, manufacturer, or other business and unlicensed areas, and other use policies. SECTION 3 – LICENSING PROCESS Page 23 Liquor Licensing Policy Manual Review plans for conformity with furnishings and equipment policies (bar stools, takeout areas and other unlicensed areas, location of lounge area, liquor service bar versus other food bars). Plans approval guidelines for licensee retail stores and wine stores For information on LRS plans approval, please refer to section 15.2.3. For information on wine store plans approval, please refer to section 16.4.3. Plans approval guidelines for liquor primary licensing of stadiums Identify scale, occupant loads, and consistency with size in the original application identify primary features for the specific facility (tiered seating and playing surface, dedicated unlicensed seating area). Identify areas to be licensed, such as stands/bleachers, patios, liquor service areas, concessions, areas for performers and athletes, corporate boxes, and concourses. Identify the stadium’s tiered seating areas to be designated as areas where the possession and consumption of liquor is not allowed. Identify banquet or beer garden areas, ramps between seating levels, various concessions and any associated dining establishments. Identify areas that may use glassware versus single use articles only and identify areas dedicated for all types of liquor versus areas dedicated to restricted types of liquor. For plans approval guidelines for manufacturers see section 17.8 SECTION 3 – LICENSING PROCESS Page 24 Liquor Licensing Policy Manual LIQUOR PRIMARY LICENCE APPROVAL PROCESS Stage one: Application for a new licence 1. Applicant Completes application form and attaches supporting documentation and fee Submits application to LCLB headquarters 2. Senior licensing analyst Receives and reviews application Determines whether the business carried on in the proposed establishment is beverage service, entertainment or hospitality No 3. Senior licensing analyst Refers application to higher authority for decision on whether to reject application No Yes 4. Senior licensing analyst Determines whether application is complete No Yes 5. Senior licensing analyst Sends letter to applicant requesting the documents required to complete the application Holds application for 90 days to await receipt of outstanding documents Determines whether application is complete 6. Senior licensing analyst Sends letter to applicant advising that application complete Yes Determines whether application is complete assessment Stage two: Applicant eligibility 7. Senior licensing analyst Obtains criminal record history and compliance history Considers applicant suitability: fit and proper, residency and age requirements, business ownership and valid property interest, and tied house circumstances Determines whether the applicant is eligible for a liquor licence No 8. Senior licensing analyst Refers application to higher authority for decision on whether to reject application Yes Stage three: Site and community assessment 9. Licensing staff Prepares inspector site report and generates map 10. Liquor Inspector Conducts site visit Prepares site report When warranted and in consultation with licensing staff, recommends the addition of terms and conditions to licence if applicant is successful. 11. Senior licensing analyst Compiles information from site report and application to prepare application summary Forwards application summary to applicant for review and comment, and advises applicant they have passed applicant eligibility assessment Incorporates applicant's comments Forwards application summary to local government or First Nation to page 2 SECTION 3 – LICENSING PROCESS Page 25 Liquor Licensing Policy Manual 12. Local government or First Nation Collects views of residents Considers regulatory criteria Provides resolution commenting on the regulatory criteria and recommending whether the licence should be issued 13. Senior licensing analyst Reviews resolution to ensure it is consistent with regulation Prepares final application summary 14. General manager Considers entire application, including resolution Determines whether to grant site and community assessment approval No 15. Senior licensing analyst Drafts decision letter for GM's signature Sends decision letter to applicant advising that application rejected Yes 16. Senior licensing analyst - Drafts decision letter for GM's signature - Sends decision letter to applicant advising that application passed site and community assessment Stage four: Building assessment and issue of a licence 17. Applicant Submits detailed floor plans 18. Senior licensing analyst Reviews floor plans Determines whether floor plans meet regulatory and policy requirements No 19. Senior licensing analyst - Sends letter to applicant advising that floor plans must be revised and resubmitted Yes 20. Senior licensing analyst Outlines liquor consumption area on floor plans Sends letter to applicant advising that application has received approval in principle Returns approved floor plans to applicant 21. Applicant Informs liquor inspector that construction completed 22. Liquor Inspector - Inspects premises - Determines whether premises are constructed in accordance with approved floor plans - Reviews licence terms and conditions with applicant - Advises if any additional terms and conditions are warranted. - Prepares final inspection report and submits to headquarters 23. Applicant Submits licence fee to LCLB headquarters 24. Senior licensing analyst Reviews inspection results No Yes 26. Senior licensing analyst Prepares approval letter Authorizes licensing staff to issue licence 25. Senior licensing analyst Sends letter to applicant advising that premises must be altered to comply with approved floor plans and/or that additional terms and conditions must be added to licence. 27. Licensing staff Sends approval letter and issues licence SECTION 3 – LICENSING PROCESS Page 26 Liquor Licensing Policy Manual FOOD PRIMARY LICENCE APPROVAL PROCESS Stage one: Application for a new licence 1. Applicant - Completes application form and attaches supporting documentation and fee - Submits application to LCLB headquarters 2. Licensing clerk - Receives and reviews application - 3. Licensing clerk Determines whether the business carried on in the proposed establishment is primarily food service during all hours of its operation No A - Refers application to higher authority for decision on whether to reject application No Yes 4. Licensing clerk - No Determines whether application is complete 5. Licensing clerk - Informs applicant of the documents required to complete the application - Holds application for 90 days to await receipt of outstanding documents - Determines whether application is complete Yes Yes Stage two: Applicant eligibility assessment 6. Licensing clerk - Obtains criminal record history and compliance history - Considers applicant suitability: fit and proper, residency and age requirements, business ownership and valid property interest, and tied house circumstances - 7. Licensing clerk No - Refers application to higher authority for decision on whether to reject application Determines whether the applicant is eligible for a liquor licence Yes 8. Licensing clerk - Sends letter to applicant advising that application has passed the applicant eligibility assessment and advising applicant to contact liquor inspector Stage three: Community impact assessment (only if applicant applying for endorsement for patron participation entertainment and/or hours of liquor service past midnight) 9. Local government or First Nation - Collects views of residents - Considers regulatory criteria - Provides resolution commenting on the regulatory criteria and recommending whether the endorsement should be issued to page 2 SECTION 3 – LICENSING PROCESS Page 27 Liquor Licensing Policy Manual 10. Manager of Licensing Administration - Reviews resolution to ensure it is consistent with regulation - Considers entire application - 11. Licensing clerk Yes Determines whether issuing the endorsement would be contrary to the public interest - Sends letter to applicant advising that endorsement not approved No Stage four: Building assessment and issue of a licence 12. Applicant - Informs liquor inspector that construction completed 13. Liquor Inspector - Inspects premises - Reviews floor plans, including occupant load - Determines whether premises are constructed in accordance with regulatory and policy requirements No 14. Liquor Inspector - Advises applicant that premises must be altered to comply with regulatory and policy requirements or - Advises applicant that terms and conditions may be added to the licence to ensure that the establishment complies with regulatory and policy requirements. Yes 15. Liquor Inspector - Outlines liquor consumption areas on floor plans - Prepares final inspection report and submits report and floor plans to LCLB headquarters. 16. Applicant - Submits fee to LCLB headquarters 17. Licensing clerk - Reviews inspection results and floor plans - Prepares approval letter - Sends approval letter and approved floor plans and issues licence. SECTION 3 – LICENSING PROCESS Page 28 Liquor Licensing Policy Manual 3.5 Licence Amendments Policy Rationale In the same way that there is considerable involvement by local governments and First Nations in the site and community assessment process, local governments and First Nations have a significant part to play if an amendment to a licence may have an impact on the surrounding neighbourhood or the community in which the establishment is located. The local government or First Nation must consider the potential for noise and the impact on the community if the application is approved. On the basis of these provisions in the Act and regulations, licence amendment policies primarily address the manner in which notice to local governments and First Nations is to be given, and how the resulting comments and recommendations are to be received and considered. Under some circumstances, the branch may need to gather the views of residents in place of a local government or First Nation. The policies also detail the manner in which this task will be undertaken. Policies 3.5.1. Notice to a local government or First Nation of an application to permanently amend a liquor primary licence or manufacturer lounge or special event area endorsement Unless the local government or First Nation has indicated that it does not wish to receive notice, licensing staff will ensure that a local government or First Nation is notified of an application to permanently amend a liquor primary licence or a manufacturer lounge or special event area endorsement in respect of: Revised February 2013 An extension of hours of liquor service 21 ; An increase in the person capacity 22 ; An increase in the size of a special event area; and/or The addition of a patio 23 . F F F F F F The notice will set out the criteria established by regulation that the local government or First Nation must take into account, including: The potential for noise if the application is approved; and The impact on the community if the application is approved. [Liquor Control and Licensing Act, sections 11.3(1) and 16(3); Liquor Control and Licensing Regulations, sections 53(2) and (4)] 3.5.2. Notice to a local government or First Nation of an application to permanently amend a food primary licence Unless the local government or First Nation has indicated that it does not wish to receive notice, licensing staff will ensure that a local government or First Nation is notified of an application to permanently amend a food primary licence in respect of: Liquor service hours ending after 12:00 a.m. 24 : and/or Patron participation entertainment 25 . F F F F 21 See related policy on the factors taken into consideration in changing the hours of sale in section 5.1 Hours of Sale. See related policy on the factors taken into consideration in changing the capacity of a licensed establishment in chapter 6 Premises, in particular sections 6.2 Structural Alterations and 6.3 Capacity. 23 See related policy for adding a patio in section 6.4 Outdoor Patios. 24 See related policy on the factors taken into consideration in changing the hours of sale in section 5.1 Hours of Sale. 25 For a definition of “patron participation entertainment” and related policy, see 11.6.3. 22 SECTION 3 – LICENSING PROCESS Page 29 Liquor Licensing Policy Manual The notice will set out the criteria established by regulation that the local government or First Nation must take into account, including: The potential for noise if the application is approved; The impact on the community if the application is approved; and Whether the amendment may result in the establishment being operated in a manner that is contrary to its primary purpose and, therefore, inconsistent with an establishment primarily engaged in the service of food. [Liquor Control and Licensing Act, sections 11.3 and 16(3); Liquor Control and Licensing Regulations, sections 53(3) and (4)] 3.5.3. Notice to a local government or First Nation of an application to temporarily amend a licence Licensing staff will ensure that a local government or First Nation is notified of an application to temporarily amend a liquor primary licence or a manufacturer licence with a lounge or special event area endorsement in respect of: An extension of hours of liquor service; An increase in the person capacity; An increase in the size of a special event area; and The addition of a patio. Licensing staff will ensure that a local government or First Nation is notified of an application to temporarily amend a food primary licence in respect of: Liquor service hours ending after 12:00 a.m.: and Patron participation entertainment. The local government or First Nation may provide written comments indicating whether or not it objects to the temporary amendment. The local government or First Nation is not required to: Provide comments in the form of a resolution: or Gather the views of residents with respect to the temporary amendment. The general manager will take any comments from a local government or First Nation into account when determining whether to temporarily amend a licence. [Liquor Control and Licensing Branch Policy] 3.5.4. Determination of when notice of an application has been received by a local government or First Nation The local government or First Nation receiving notice of an application under policy 3.5.1 or 3.5.2 must provide comments and recommendations within ninety (90) days of receiving the request, unless a further period is authorized by the general manager. Before licensing staff begin processing the licence amendment application, the applicant will be expected to return to the Liquor Control and Licensing Branch Headquarters a copy of the notice that has been date-stamped by the local government or First Nation. For the purposes of calculating the 90-day period in which a response is expected, the notice is considered to have been received by the local government or First Nation on the date stamped on the returned copy of the notice. [Liquor Control and Licensing Regulations, section 53(7), Liquor Control and Licensing Branch Policy] SECTION 3 – LICENSING PROCESS Page 30 Liquor Licensing Policy Manual 3.5.5. Requests for time extensions from local governments or First Nations Should a local government or First Nation request a period of time greater than 90 days in which to provide written comments regarding an application, the general manager may authorize a further period after considering: The reasons for the request; The proposed date by which comments will be provided; Any adverse effects the applicant may experience if a further period is authorized; Whether the circumstances of the delay relate to the specific application under consideration, or whether they suggest a general pattern of delay in respect of all applications in the area; and Such other factors as may be relevant in the public interest. Any further period permitted by the general manager will be authorized in writing. [Liquor Control and Licensing Act Regulations, section 53(7), Liquor Control and Licensing Branch Policy] 3.5.6. Recommendations on terms and conditions from local governments or First Nations A local government or First Nation may pass a resolution in which approval or support for a licence amendment application is contingent on certain terms and conditions being attached to a liquor licence. Under these circumstances, and if the application otherwise meets the requirements for amending a liquor licence, the general manager will take the recommendations of the local government or First Nation into consideration in determining the terms and conditions of a licence. [Liquor Control and Licensing Branch Policy] 3.5.7. Consideration of whether local governments or First Nation took into account all of the criteria The general manager may conclude that the local government or First Nation took into account all of the criteria required by regulation, as in policies 3.5.1 and 3.5.2, if: The resolution provides comments on each criterion; or The resolution provides comments on each criterion, except the views of residents, as these are deemed to be consistent with the community plan; or If the comments have been addressed in the staff report and are referenced in the resolution. In the absence of a comment described above, the general manager may conclude that the local government or First Nation did not take into account all of the criteria as required by regulation. [Liquor Control and Licensing Act, section 11.3(2)(c); Liquor Control and Licensing Regulations, sections 53(4), (5) and (6); Liquor Control and Licensing Branch Policy] 3.5.8. Consideration of local government or First Nation comments and recommendations relating to an application to amend a licence When assessing whether it would be contrary to the public interest to amend a licence, the general manager shall consider any resolutions put forward by a local government or First Nation with respect to a licence amendment application. In considering such resolutions, the general manager will determine whether the comments and recommendations advanced in a resolution are consistent with the facts presented or are in any way perverse. This includes a determination of whether the recommendations: Are consistent with public opinion; Reflect consideration of relevant factors related to liquor licensing and not factors unrelated to liquor licensing, such as the economic impact on individual pre-existing licensees; or SECTION 3 – LICENSING PROCESS Page 31 Liquor Licensing Policy Manual Are otherwise contrary to the public interest. [Liquor Control and Licensing Act, sections 11.3(2) and 16(3); Liquor Control and Licensing Branch Policy] 3.5.9. Circumstances under which the local government or First Nation may be asked for an amended resolution If the general manager determines that the resolution from the local government or First Nation does not comment on each criterion, as in policy 3.5.7, the general manager may ask the local government or First Nation for additional information in the form of a new resolution. [Liquor Control and Licensing Branch Policy] 3.5.10. Circumstances under which the general manager will gather the views of residents on an application to permanently amend a licence If under policy 3.5.7, the local government or First Nation: References a community plan that is not consistent with the application; or Does not reference a community plan and Has indicated that it does not wish to receive notice of an application, or Has indicated that it does not wish to provide comments on an application, or Does not reply to a notice of an application within ninety (90) days and no extension to the time has been granted, or Provides a resolution but fails to gather or comment on the views of residents in accordance with the regulations. If the general manager determines that the recommendations advanced in a resolution are contrary to the public interest, the general manager will generally direct the applicant to give public notice of a permanent amendment application to residents in the area. When considering whether to amend the licence, the general manager will take into account the views of those residents as well as the criteria set out in policy 3.5.1 or 3.5.2. [Liquor Control and Licensing Act, sections 11.3(2)(c) and 16(3), Liquor Control and Licensing Regulations, section 53(2), (3), (5), and (7); and Liquor Control and Licensing Branch Policy] 3.5.11. Form and manner of public notice of the application In the event that public notice of an application is given, as in policy 3.5.10, reasonable notice is given by: Posting Notice of Intent signs in a form determined by the general manager for thirty (30) days; Placing newspaper advertisements on two (2) occasions in local newspapers to inform the public of the intent to establish a licensed facility at the specific location; and Such other notification activities as may be approved by the general manager. When a Notice of Intent sign is posted, photographs showing both the wording on the sign and its location on the site will be taken by the licensee and submitted to the branch to ensure that the branch has a permanent record of these aspects of the sign. [Liquor Control and Licensing Act, section 11.3(2); Liquor Control and Licensing Branch Policy] 3.5.12. Public response radius when giving public notice of the application In the event that public notice of a licence application is being advertised as in policy 3.5.11, residents and businesses within a 0.8 kilometre (one half mile) radius of the proposed site have the opportunity to comment in writing. Where there are few, if any, residents or businesses within this radius, a decision to SECTION 3 – LICENSING PROCESS Page 32 Liquor Licensing Policy Manual either increase the public notification radius or waive the requirement may be made by the general manager. The decision will be based on the individual circumstances of each application. Petitions will generally not be considered in ascertaining the residents’ views about an application. Written comments will be accepted for one week following the end of the public notification period. [Liquor Control and Licensing Act, section 11.3(2); Liquor Control and Licensing Branch Policy] 3.5.13. Written notification of decision about amendment application When a decision has been made, written notification will be provided to the applicant indicating: Whether the application for amendment has been approved or refused; and If refused, the reasons the application was refused. [Liquor Control and Licensing Branch Policy] Revised April 2013 3.5.14. Limitation on temporary changes to a licence A licensee may apply for 4-6 temporary changes to their licence per year in total. The general manager may make an exception to the limitation on the number of temporary change applications, depending on the type of business, nature of the proposed event, impact on the community and/or other extenuating circumstances. [Liquor Control and Licensing Branch Policy] 3.6 Re-Application Policy Rationale If a licence for a particular site has already been refused, the applicant and/or the proposed site for a new licensed establishment is considered not to have complied with the requirements of licensing; that is, unless circumstances pertinent to the refusal the first time have changed. For administrative purposes, a decision not to grant a licence remains active for a period of two years, unless there is a demonstrable change in circumstances. This time period is based on the idea that, for at least this length of time, the factors, such as community impact or support for the application, outside the applicant’s control are unlikely to have changed substantially within that period of time. After two years, a new application may be considered. Or, if the applicant can demonstrate that circumstances relating to the original refusal have changed significantly, the general manager may agree to consider a new application before the two-year period is up. The policies below guide the process by which the general manager may make an exception to the two-year waiting period. Policies 3.6.1. Refusal to grant a licence effective for two years Unless otherwise authorized by the general manager, a new liquor primary licence application for a site with the same legal description as one previously refused will not be considered for a period of two (2) years from the date of the original refusal. [Liquor Control and Licensing Act, section 16(1)(d), Liquor Control and Licensing Branch Policy] 3.6.2. Exception to two-year waiting period The general manager may agree to accept a new application before the expiry of the 2-year waiting period where the applicant demonstrates that: The relevant regulations or policies have changed since the refusal; or SECTION 3 – LICENSING PROCESS Page 33 Liquor Licensing Policy Manual Circumstances have changed significantly; and The changed circumstances bear on the reasons for the refusal of the previous application. [Liquor Control and Licensing Branch Policy] 3.6.3. Effect of exception to two year waiting period A decision to make an exception under policy 3.6.2 is not an indication that a new application is likely to succeed. While the reasons an application for the site failed previously are relevant considerations and should be addressed in the new application, the new application will be considered on its own merits and will be subject to current legislation and policies. [Liquor Control and Licensing Branch Policy] 3.7 Licence Renewals Policy Rationale Licences are issued for a fixed period. As the licence expiry date approaches, the branch will send a renewal notice to licensees. A licensee who fails to renew their liquor licence by the expiry date stamped on the face of their licence is no longer permitted to sell liquor at their establishment. The branch will, however, renew a licence for a period of up to thirty days after the expiry date. After thirty days, the licence will only be renewed under exceptional circumstances and, failing that, the licensee may be obliged to apply for and obtain a new licence before they can sell liquor at their establishment again. Although all the factors considered at the time the licence was originally granted are not considered again at the time of renewal, section 16 of the Act provides that “a licence must not be issued, renewed or transferred ...” (emphasis added) where, in the general manager’s opinion, the applicant suitability and public interest conditions have not been met. 26 Primarily, this means that any new convictions for a federal, provincial, or municipal offence, or a poor enforcement record indicating a failure to comply with the Liquor Control and Licensing Act and Regulations, may be sufficient reason not to renew a liquor licence. F F Policies 3.7.1. Personal suitability factors affecting licence renewal A licence may not be renewed where, in the general manager’s opinion, the licensee is unsuitable to hold a liquor licence. The factors that the general manager will consider are outlined above in section 3.2.2. [Liquor Control and Licensing Act, section 16, Liquor Control and Licensing Branch Policy] 3.7.2. Site and community factors affecting licence renewal On the general manager’s own motion or on receiving a complaint, and if there is reason to believe that the factors considered in the original site and community assessment may have changed, the general manager may decide to conduct a further assessment to determine whether a licence should be renewed. [Liquor Control and Licensing Act, sections 20(1)(d) and 20(2); Liquor Control and Licensing Branch Policy] SECTION 3 – LICENSING PROCESS Page 34 Liquor Licensing Policy Manual 3.7.3. Applications for licence renewal received on or before the expiry date A liquor licence expires on the expiry date stamped on the face of the licence. If accompanied by the annual licence renewal fee, and pending consideration of the factors outlined in policy 3.7.1, an application for licence renewal received on or before the expiry date will be processed without delay. [Liquor Control and Licensing Act, sections 15(1) and 12(5), Liquor Control and Licensing Regulations, section 55, Liquor Control and Licensing Branch Policy] 3.7.4. Applications for licence renewal received within thirty days after expiry date If accompanied by the requisite late application fee in addition to the annual licence renewal fee, and pending consideration of the factors outlined in policy 3.7.1, an application for licence renewal may be processed if it is received within thirty (30) calendar days of the expiry date. [Liquor Control and Licensing Act, sections 15(1) and 12(5), Liquor Control and Licensing Regulations, section 55, Liquor Control and Licensing Branch Policy] Revised December 2013 3.7.5. Applications for licence renewal received more than thirty days after expiry date Taking into account the factors outlined in policy 3.7.1, a licence, other than an agent licence, may be reinstated if there are no changes to the ownership or layout of the establishment, there is no enforcement action pending and it is within twelve (12) months of the expiry date of the licence. The reinstatement application must be submitted with the requested documentation and the prescribed reinstatement, late renewal and licence renewal fees. An agent licence may be reinstated if the ownership of the business has not changed, there is no enforcement action pending and it is within twelve (12) months of the expiry date of the licence. The general manager may request the applicant provide written reasons why the licence should be reinstated. If the licence reinstatement is not justified, the applicant must submit a new application and be approved before liquor can be sold in the establishment. [Liquor Control and Licensing Act, sections 15(1) and 12(5), Liquor Control and Licensing Branch Policy] SECTION 3 – LICENSING PROCESS Page 35 Liquor Licensing Policy Manual SECTION 4: Business Ownership and Changes to a Licence 4.0 Introduction The circumstances in existence at the time a liquor licence is originally issued do not necessarily remain the same throughout the life of the licensed establishment. Businesses grow, diminish, or change in character; owners change or move on; renovations are needed or building additions considered; and so on. Since the changes may affect the operation of the licensed establishment, they may require a change in the terms and conditions of the licence or a change to recognize the new ownership or physical character of the establishment. This chapter begins with a section about who has the authority to make various changes to a licence – that is, who is the “change approval authority”. It should be noted that some of the licence changes for which change approval authority is discussed here are detailed in other chapters. The final section of this chapter covers valid interest in an establishment, whether that interest is through ownership, a lease or a management contract. The remainder of this chapter is devoted to what could be called “miscellaneous” changes to a licence, largely because they are brought about by alterations that do not generally change the conduct or character of the establishment. Rather, they relate to changes in the legal name or ownership of the establishment or to its location. Topics in this chapter are organized under the following headings: Change Approval Authority Legal Name/Internal Ownership Changes Sale of a Licensed Establishment Relocation of a Licensed Establishment Valid Interest in an Establishment, and Dormant Licences. 4.1 Change Approval Authority Policy Rationale Section 3(1) of the Liquor Control and Licensing Regulations permits the general manager to “delegate any of his or her powers, duties and functions under the Act and this regulation to one or more officers or persons …” Section 4(2) of the Act states, further, that “the general manager must issue written directives to the officers …”. In the absence of a formal delegation or a written directive, then, the general manager must personally apply the rules and exercise discretion in carrying out the various requirements under the Act and regulations. In order to achieve administrative efficiencies in the licensing process, specific people and/or officers have been authorized to approve changes when a change to an existing licence conforms to both statutory and policy requirements and the general manager’s discretion is not exercised. For conforming applications for temporary changes, and some permanent changes, it is simply more efficient to place the authority to approve the changes in the hands of staff who are most directly involved with the applications. The following policies establish the broad rules by which change approval authority is applied, as well as the circumstances under which an application should be made to the general manager for discretion to be exercised. A flow chart providing an overview of the roles and responsibilities of licensing staff under these policies can be found at the end of this section. SECTION 4 – BUSINESS OWNERSHIP AND CHANGES TO A LICENCE Page 1 Liquor Licensing Policy Manual Policies 4.1.1 Authority to approve applications for changes to licences Staff having the appropriate change approval authority may approve a change to a licence provided: the change is permitted by the Act and regulations and is within policy guidelines, and consideration has been given to the compliance histories of the licensee, of any new shareholder or licensee, and of the establishment. [Liquor Control and Licensing Act, section 4(2); Liquor Control and Licensing Regulations, section 3(1); Liquor Control and Licensing Branch Policy] 4.1.2. Applications for an exercise of discretion The general manager may exercise discretion to approve or reject a change to a licence if: the requested change is not prohibited by the Act or regulations, but not generally permitted by policy; and/or the licensee or establishment has an unsatisfactory compliance history. An application for a change to a licence under these circumstances must be submitted in writing to the general manager. The application must include sufficient information to allow consideration of whether the details support an exception to the policy prohibition, and whether the requested change is contrary to the public interest. Increased business or other financial burdens are generally not compelling when considering whether the change is contrary to the public interest. Only the general manager or a person designated by the general manager is authorized to approve or reject such an application. The following applies to an application requesting the exercise of discretion to policy: A detailed written submission providing compelling reasons why the request for discretion should be approved must be submitted. All documentation to support the request for discretion must be submitted together in one package; the Branch will not consider additional materials submitted after a completed application is received. The submission should explain in detail the unique circumstances that distinguish the applicant’s situation from that of other licensees. It is not sufficient for the applicant to simply argue in their written submission that they do not like the policy, or the policy impairs their ability to do business in a manner that they would prefer. If a staff report is prepared in regards to a request for discretion, the applicant will be provided with a copy and will have two weeks to provide any comments before the request for discretion is considered by the General Manager. It generally takes a minimum of three months for the Branch to provide a written decision in response to a request for an exercise of discretion. [Liquor Control and Licensing Branch Policy] 4.1.3. Statute barred change applications An application for a change to a licence that is prohibited by the Act or regulations is statute barred and cannot be considered for discretionary action by the general manager. Under these circumstances, licensing staff will return the application to the applicant and advise them that their request is not permitted under the Act or regulations. [Liquor Control and Licensing Branch Policy] SECTION 4 – BUSINESS OWNERSHIP AND CHANGES TO A LICENCE Page 2 Liquor Licensing Policy Manual 4.1.4. Change applications in which enforcement action is in progress A change application will generally not be considered until any enforcement action, in progress at the time of application, has been concluded and the relevance of the action has been determined. [Liquor Control and Licensing Branch Policy] Factors in determining the relevancy of a licensee’s compliance history in a change application The following factors shall be considered in determining whether the compliance history of the licensee or establishment is relevant: 4.1.5. whether there are any recent recorded incidents of non-compliance whether non-compliance is alleged or proven in any of the incidents any enforcement action taken in incidents of non-compliance action the licensee has taken to resolve incidents of non-compliance any change in ownership or management control of the establishment since the last incidents of noncompliance on record number of inspections that have occurred in which no incidents of non-compliance were recorded whether police or local government filed any complaints regarding the operation of the establishment the impact of any incidents of non-compliance on the surrounding community, and likelihood that the requested change will either lead to further non-compliance or assist in resolving issues related to the non-compliance. [Liquor Control and Licensing Branch Policy] 4.1.6. Time span of compliance record relating to a change request The time span of a compliance record that will be considered in relation to a licence change is: the previous three years for applicants who currently hold a licence the previous ten years for applicants who previously held a licence but who were not prohibited from holding a liquor licence, and the full span of the records retained by the Liquor Control and Licensing Branch for applicants who were, at any time, prohibited from holding a liquor licence due to incidents of non-compliance. [Liquor Control and Licensing Branch Policy] SECTION 4 – BUSINESS OWNERSHIP AND CHANGES TO A LICENCE Page 3 Liquor Licensing Policy Manual Change Approval Authority (CAA) Roles and Responsibilities Licence Applicant Completes application Licensing Clerk Reviews to ensure application complete Licensing Case Manager Determines if application is conforming, statute-barred or requires that discretion be exercised Conforming and case manager is the CAA Case Manager 1. approves form 2. provides applicant with documentation 3. files copy 4.forwards originals to Head Office Statute-Barred Case Manager 1. issues refusal letter 2. files copies 3. forwards originals to Head Office Licensing Clerk 1. updates system 2. mails revised licence if applicable 3. files original documents NOTE: This chart represents the procedural flow of “request for change” applications for which a Licensing Case Manager is, on the face of it, the CAA. Discretion to be Exercised Case Manager 1. gathers all information 2. advises applicant, in writing of forwarding to GM for discretion 3. forwards original to senior licensing analyst Senior Licensing Analyst 1. gathers additional info 2. helps case manager determine if application does require discretion 3. confers with manager of licensing to determine if existing, but little known, policy applies 4. prepares and presents report for GM/DGM GM or Deputy GM exercises discretion Senior Licensing Analyst drafts decision letter for approval or rejection SECTION 4 – BUSINESS OWNERSHIP AND CHANGES TO A LICENCE Page 4 Liquor Licensing Policy Manual 4.2 Legal Name/Internal Ownership Changes Policy Rationale The responsibility for all matters respecting a liquor licence is placed with the licensee personally. Additionally, under sections 16(1)(b) and (c) of the Liquor Control and Licensing Act, a licence may not be issued, renewed or transferred to a person who “is not the owner of the business …” or “is not the owner or lessee of the establishment or portion of the establishment to be licensed”. Section 4(1) of the Liquor Control and Licensing Regulations elaborates further on the lease requirements, stating that a lessee must be “… under a lease that does not expire for at least 12 months after the date of issue or transfer of the licence”. Proof of ownership or lease – and of who is personally responsible for the conduct of the establishment while licensed – is tied to the legal name of the licensee. This broad requirement guides the policies behind four types of changes to a licence as a result of changes in a licensee’s legal name or the composition of persons having a legal interest in an establishment: a change in the licensee’s name, whether a sole proprietor, partnership, or corporation; an internal amalgamation; internal share transfers; and the death or bankruptcy of a licensee. For changes involving licensee names and amalgamations, there are no specific statutory provisions guiding these changes apart from the broad requirement under section 16(1)(b) and (c) of the Act and section 4(1) of the regulations, as already mentioned, and provision for the fees for such changes under Schedule 1 of the regulations. The policies below define the nature of these changes and clearly state those things only implied in the Act and regulations; that is, that the Liquor Control and Licensing Branch should be informed in the event of a change in licensee name or corporate amalgamation. They also set out the documentation accepted by the branch as legal proof of such changes. For changes involving an internal transfer of shares, section 19 of the Act states that the general manager’s approval may be required before a corporation transfers shares in its capital stock. Since internal share transfers involve only a re-assignment of shares among the existing shareholders in the licensed establishment, the general manager need not re-consider factors related to applicant suitability in determining whether to approve such a transfer. 1 This, of course, is also true in the situation of a legal name change or an internal amalgamation of companies within a licensee corporation. The policy respecting internal share transfers specifies the need to acquire the prior approval of the general manager, and outlines the documentation that should be forwarded along with a request for approval. F F Finally, for licence changes resulting from the death or bankruptcy of licensees, section 21(2) of the Act gives the heirs, executors, administrators or successors the powers and obligations of the licensee until the expiration of the licence. The general manager may also renew the licence in their name for one year after the expiration date. The policies applicable under these circumstances highlight the need to inform the branch of the situation, and outline the documentation accepted by the branch as evidence of another person’s right to act temporarily in place of the deceased or bankrupt licensee. 1 A somewhat different situation may exist with legal entity changes, for example, when an individual operating under a sole proprietorship wishes to join with one or more partners and register the business as partnership. Under these circumstances, the general manager will need to reconsider factors related to applicant eligibility in determining whether to approve the change since the greater interest in the business no longer lies with the person named in the original application. A similar situation may arise when a new company joins a licensee corporation. If the addition of the new company significantly shifts the ownership of the licensed establishment so that the greater interest in the establishment no longer lies with the companies named in the original application, the general manager will need re-consider applicant eligibility in determining whether to approve the change. These situations are treated as licence transfers (see applicable policy under Change in Ownership or Sale of a Licensed Establishment in this chapter). SECTION 4 – BUSINESS OWNERSHIP AND CHANGES TO A LICENCE Page 5 Liquor Licensing Policy Manual Policies 4.2.1. Advice of licensee name change In the event that the sole proprietor, partnership or corporation to whom a licence is issued legally changes their name, the general manager must be notified. A change in licensee name involves a change in the name of the person(s), organization, or business name under which the licensee operates the licensed establishment, but no change in the status of the legal entity responsible for the debts and liabilities incurred by the licensed establishment. 2 F [Liquor Control and Licensing Act, section 16(1)(b) and (c); Liquor Control and Licensing Regulations, section 4; Liquor Control and Licensing Branch Policy] 4.2.2. Individual name change In the event that the legal name of a person holding interest in a licence changes, the general manager must be notified. The legal name of a person holding interest in a licence may change, whether as: a sole proprietor; partner in a partnership; or an officer, director, or shareholder with a ten per cent or greater interest in a licensee corporation (or holding company). If the change affects the face of the licence, licensing staff will approve and issue an amended licence reflecting these changes in the legal name of the person upon receipt of the necessary documents. [Liquor Control and Licensing Branch Policy] 4.2.3. Corporation name change In the event that the legal name of a corporation changes, the general manager must be notified. The legal name of a corporation may change when the corporation or the holding company of which it is a part changes the name under which it operates. Licensing staff will approve and issue an amended licence reflecting these changes in the legal name of a corporation upon receipt of the necessary documents. [Liquor Control and Licensing Branch Policy] 4.2.4. Notice of internal amalgamation 3 In the event of an internal amalgamation of companies within a licensee corporation, the general manager must be notified. Upon receipt of the necessary documents, licensing staff will approve and issue an amended licence certificate reflecting the new legal name of the licensee. F [Liquor Control and Licensing Act, section19 (1); Liquor Control and Licensing Branch Policy] 4.2.5. Internal share transfer A corporation may not complete an internal transfer 4 of shares in its capital stock without the prior approval of the general manager. Upon receipt of the necessary documents, licensing staff will approve F F 2 Any change involving a change in the legal entity status of the licensee requires a licence transfer. See related policy in 4.3 Change in Ownership or Sale of a Licensed Establishment. 3 An internal amalgamation involves the combining of two companies or corporate entities into one but results in no new shareholders – for example, where a licensee corporation and one or more holding companies joins to operate under one name within the licensee corporation. An external amalgamation involves the combining of two companies or corporate entities within one but does result in new shareholders – for example, where an outside corporation is introduced into the licensee corporation along with new shareholders. External amalgamations are treated as a licence transfer (see related policy under Sale of a Licensed Establishment). Approval of these amalgamations do not typically require an assessment of applicant suitability as is true of external amalgamations; however, applicant suitability may be an issue if the amalgamation results in an increase of any company’s or shareholder’s share percentage to 10% or more. Individuals holding less than 10% of voting shares or holding on non-voting shares in the applicant company are required to provide only their full legal name and date of birth at the time of application. However, the general manager may, at any time, require any and all shareholders to undergo a criminal record check. 4 An internal share transfer is any new assignment of shares within a private company holding a liquor licence (and any holding companies that may be part of a licensee corporation) that does not involve a new shareholder or shareholders. Approval of these transfers do not typically SECTION 4 – BUSINESS OWNERSHIP AND CHANGES TO A LICENCE Page 6 Liquor Licensing Policy Manual the transfer of shares in the name of the licensee. [Liquor Control and Licensing Act, section 19(2); Liquor Control and Licensing Branch Policy] 4.2.6. Change in the officers of a club Immediately after a change occurs in the officers of a club, the club must file a revised list of the top four officers with the general manager. Licensing staff will update the licensee record reflecting the change of officers in the club upon receipt of the revised list. Clubs that are non profit fraternal societies may file a resident manager’s application at the same time as the change of table officers at no additional fee. Criminal record history forms for a change in officers are required from the club president and resident manager. [Liquor Control and Licensing Regulations, section 51(2); Liquor Control and Licensing Branch Policy] 4.2.7. Renewal of licence upon notice of death In the event of the death of a licensee, the general manager must be notified. Upon receipt of the necessary documents, licensing staff will approve and issue an amended licence with the name of the heir, executor, or successor appended. The general manager may renew the licence with the name of the heir, executor, administrator or successor appended, for a period of one year. By the end of the one-year renewal period, a transfer application and appropriate documentation must be submitted to the branch and the licence transferred into the name of the new owner of the business. [Liquor Control and Licensing Act, section 21(2); Liquor Control and Licensing Branch Policy] 4.2.8. Issue of amended licence upon notice of bankruptcy or receivership In the event that a licensee declares bankruptcy or the business goes into receivership, the general manager must be notified. Upon receipt of an application and the necessary documents, licensing staff will approve and issue an amended licence with the name of the trustee (bankruptcy) or receiver (receivership) appended. The trustee or receiver may operate the licensed establishment until the business is sold and the branch can complete a transfer of licence ownership. [Liquor Control and Licensing Act, section 21(2); Liquor Control and Licensing Branch Policy] require an assessment of applicant suitability as is true of external share transfers (see related policy under Sale of a Licensed Establishment); however, applicant suitability may be an issue if the internal share transfer results in an increase of any person’s share percentage to 10% or more. SECTION 4 – BUSINESS OWNERSHIP AND CHANGES TO A LICENCE Page 7 Liquor Licensing Policy Manual 4.3 Change in Ownership or Sale of a Licensed Establishment Policy Rationale The rationale for the way the Liquor Control and Licensing Branch deals with licence transfers and external share transfers is similar to that described earlier in this chapter under Legal Name/Internal Ownership Changes. Since the responsibility for all matters respecting a liquor licence is placed with the licensee personally, any change in the person or persons to whom a licence is issued changes the legal understanding between the licenser and the licensee. There is one key difference between these two types of changes to a licence. Changes in the licensee’s legal name or the composition of ownership within a licensee corporation relate, largely, to changes in the legal identity of the licensee. They are not a change in the person or persons to whom the licence was originally issued. 5 The factors originally considered with respect to applicant suitability are unaffected in such a situation. On the other hand, in ownership changes or the sale of licensed establishments, the factors originally considered with respect to applicant eligibility are affected. F F Under section 16(1) (b) and (c) of the Liquor Control and Licensing Act, a licence may not be issued, renewed or transferred to a person who “is not the owner of the business …” or “is not the owner or lessee of the establishment or portion of the establishment to be licensed”. Therefore, situations involving new owners or shareholders require the general manager to assess the eligibility of these individuals – just as was done at the time of the original application. Section 21(1) of the Act further requires that a licence not be “transferred or otherwise dealt in or disposed of without written consent of the general manager”. Sub-section (3) of this section goes on to say “a licence is not transferable from one establishment to another or from one area in an establishment to another without written consent of the general manager”. Essentially, there are two types of transfers envisioned here that affect the ownership of the licensed establishment 6 : a licence transfer, involving new ownership or new partners in a licensed establishment; and an external share transfer, involving the addition of new individuals or corporations to the ownership mix of the licensed establishment 7 . F F F F Section 19(1) of the Act sets out the requirement for directors, officers or employees of a corporation to produce particulars of the officers and shareholders of a corporation at the time they apply for a transfer of ownership – if requested to do so by the general manager. Section 19(2) further requires that the corporation first acquire the general manager’s approval before actually transferring the shares in its capital stock. Similar requirements apply to clubs with liquor primary licences. A liquor licence is granted to a particular organization made up of individuals having a specific aim and objective. Section 24 of the Act specifies that, if a club ceases to exist, the liquor licence is void and a voided licence cannot be transferred. Finally, under section 17(1) of the Act, a licensee may not allow another person to use their licence unless the general manager approves such an arrangement. So that the sale or lease of a licensed establishment is not held up an unreasonable length of time, the general manager has issued a general policy permitting a new owner to use the previous owner’s liquor licence for up to six weeks while the documentation necessary to officially transfer the licence is prepared. 5 With respect to the death or bankruptcy of a licensee, the licence amendment reflects the authority of the executor, administrator or trustee in bankruptcy to act temporarily in place of the person to whom the licence was issued. It is not, then, a transfer of the licence to another person. 6 Another kind of licence transfer, involving a change in the physical position of a licensed establishment, is discussed in the section on Relocation of a Licensed Establishment. 7 For related discussion and policy on internal share transfers, see the section on Legal Name/Internal Ownership Changes. SECTION 4 – BUSINESS OWNERSHIP AND CHANGES TO A LICENCE Page 8 Liquor Licensing Policy Manual Policies 4.3.1. Definitions applicable to a change in ownership or sale of a licensed establishment For the purpose of policies respecting the change in ownership or sale of a licensed establishment: a licence transfer involves an assignment of the licence to the new or partially new ownership of a licensed establishment, or to any new partners in a partnership that owns a licensed establishment, and an external share transfer occurs when a new shareholder has entered the corporate licensee that owns or has an interest in a licensed establishment. 8 a change in legal entity status involves a change in the person(s), organization, or business legally responsible for the debts and liabilities incurred by the licensed establishment. F [Liquor Control and Licensing Branch Policy] 4.3.2. Licence not transferable without general manager’s consent A licence: shall not be transferred or otherwise dealt in or disposed of, and is not transferable from one establishment to another or from one area in an establishment to another without the written consent of the general manager. [Liquor Control and Licensing Act, section 21(1) and (3)] 4.3.3. Corporate transfers of licence or shares The general manager may require that a corporation: if privately owned, provide particulars of the officers and shareholders at the time an application is made to transfer a licence to it, or at other times during the term of the licence, or acquire the prior approval of the general manager before transferring shares of its capital stock. [Liquor Control and Licensing Act, section 19(1) and 19(2)] 4.3.4. Applicant eligibility In all licence transfers, external share transfers, and changes in legal entity status requiring a licence transfer, the general manager may assess the eligibility of the transfer applicant in the same manner as is done at the time of a new application for a licence. [Liquor Control and Licensing Act, section 16(1); Liquor Control and Licensing Branch Policy] 4.3.5. Addition or deletion of partners The addition or deletion of partners to a partnership is treated as a licence transfer 9 , and is subject to the general manager’s approval. This may occur when a new partner joins the partnership, a partner dies, a partner wishes to withdraw, or there are any other changes in the makeup of the partnership. All new partners added to a partnership licensee are subject to an applicant eligibility assessment. F 8 F For discussion and policy on internal share transfers, see section 4.2 Legal Name/Internal Ownership Changes . 9 A partnership dissolves when the partnership is either increased or reduced in number, and the legal entity status of a partnership changes as a result. A licensee is required to apply for a licence transfer when this occurs, or in the event of any other change to the legal entity status of their business. SECTION 4 – BUSINESS OWNERSHIP AND CHANGES TO A LICENCE Page 9 Liquor Licensing Policy Manual [Liquor Control and Licensing Act, section 16(1); Liquor Control and Licensing Act Regulations, section 4(1); Liquor Control and Licensing Branch Policy] 4.3.6. Addition or deletion of shareholders The addition or deletion of shareholders is treated as an external share transfer, and is subject to the general manager’s approval. All shareholders added to a corporate licensee, holding 10% or greater interest in the licence, are subject to an applicant eligibility assessment. [Liquor Control and Licensing Act, section 16(1); Liquor Control and Licensing Act Regulations, section 4(1); Liquor Control and Licensing Branch Policy] 4.3.7. Licence and external share transfers involving licensees of another licensed establishment In licence or external share transfer applications where the new owners or shareholders are currently the licensees of another licensed establishment, have previously had an association with a licensee, or held a licence, the general manager may undertake a review to: ensure compliance with existing legislation and policy, and identify any term or condition of the licence that is not transferable to the new owners or shareholders. [Liquor Control and Licensing Act, section 16(1); Liquor Control and Licensing Branch Policy] 4.3.8. Club licences not transferable A liquor primary club licence may not be transferred under any circumstances. A licence will be considered void when the club ceases to exist or when the membership dissolves the organization or returns its charter. [Liquor Control and Licensing Act, sections 21(1) and 24; Liquor Control and Licensing Branch Policy] 4.3.9. Temporary permission to use a licence pending a transfer When a licensed establishment is sold in whole or in part, whether by sale of assets or sale of shares, the general manager may permit the new owner to use the previous owner’s liquor licence for up to six weeks while the new owner assembles the documents required to meet branch requirements for the transfer of ownership. The general manager will not approve a licence transfer if the new owner or shareholder has been previously found not to be “fit and proper” to hold a liquor licence. [Liquor Control and Licensing Act, sections 16(1)(a) and 17(1); Liquor Control and Licensing Branch Policy] 4.4 Relocation of a Licensed Establishment Policy Rationale As becomes evident through the licence application process, there are three key requirements in the granting of a liquor licence: the personal suitability of the applicant, the suitability of the site for the proposed establishment, and the design and construction of the licensed establishment. 10 If any of these things change significantly after the licence has been granted, the factors considered at the time of the original application must be re-considered. Several of the earlier sections in this chapter refer to changes F 10 For a fuller discussion of these requirements, see the chapter on Licensing Process. SECTION 4 – BUSINESS OWNERSHIP AND CHANGES TO A LICENCE Page 10 F Liquor Licensing Policy Manual in the “person”, largely through a change in the ownership of an establishment. A relocation, on the other hand, is a change in the establishment – if only in the physical situation of the establishment and not its character. Section 21(3) of the Liquor Control and Licensing Act specifies that “a licence is not transferable from one establishment to another or from one area in an establishment to another without written consent of the general manager”. This section indicates, then, that there are two types of relocation: a relocation to a new address, and a relocation at the same address. The first of these, relocation to a new address, draws into consideration the same broad range of site and community assessment criteria considered at the time of an original application. Under section 16(3) of the Act, “a licence shall not be ... transferred ... where, in the general manager’s opinion, it would be contrary to the public interest”. For this reason, then, and so that all the relevant information is provided and fully explored, the process for notifying and acquiring a resolution from the local government or First Nation will be followed when assessing an application for relocation. If, however, the relocation to a new address is unlikely to change the site and community assessment factors – for instance, the relocation is within close proximity to the existing location – the general manager may consent to the existing licence being transferred to the establishment at the new location. Of course, this consent still depends on the approval of the plans for the licensed area in the new building, an assessment of any local concerns about the relocation, and any other relevant factors the general manager may consider to be important. The second type of relocation, relocation at the same address, is treated as a structural alteration 11 . This is because a change of this sort generally does not impact on the assessment criteria applied at the time of the original application. Instead, the relevant factors relate to whether the physical dimensions and layout of the relocated establishment help or hinder staff in effectively managing the licensed area. Consent of the general manager for this kind of relocation, therefore, is based on the same type of information that is provided for approval requests for structural alterations. F F For the relocation of a caterer’s business location, see section 14.3.4. For the relocation of a licensee retail store, please see section 15.2. For the relocation of a wine store, see section 16.4. For the relocation of a UBrew/UVin, see section 18.2.5. Policies 4.4.1. Licence for a re-locating establishment not transferable without general manager’s consent A licence is not transferable to an establishment that has been relocated to a new address, or to an establishment or licensed area within an establishment that has been relocated at the same address, without the written consent of the general manager. [Liquor Control and Licensing Act, section 21(3); Liquor Control and Licensing Branch Policy] 4.4.2. Definition of relocation For the purposes of policy 4.4.1, the relocation of a licensed establishment may be defined as: 11 relocation to a new address - any change in the legal description or the civic address of the premises to which a liquor licence has been granted, or relocation at the same address - any change in the location of the premises or the licensed area within the premises at the same legal description or civic address to which a liquor licence has been granted. See related policies under Structural Alterations in the chapter on Premises. SECTION 4 – BUSINESS OWNERSHIP AND CHANGES TO A LICENCE Page 11 Liquor Licensing Policy Manual [Liquor Control and Licensing Branch Policy] 4.4.3. Relocation to a new address Before consenting to the transfer of a licence for an establishment relocating to a new address, the general manager may consider whether factors pertinent to the site and community assessment are affected by the relocation. 12 Where these factors may be affected, the licensee will be asked to submit the transfer application to a new site and community assessment. Once the application has passed the assessment, or in an application where the relevant site and community factors are not affected, the general manager may give written consent to the transfer of the licence if: F F the plans for the establishment at the new address are approved the applicant has demonstrated a valid interest in the proposed location the applicant retains a valid interest in the currently licensed site until the application receives site and community assessment approval or the equivalent if for a liquor primary establishment, manufacturer lounge, or special event area, the views of the local government or First Nation, obtained by way of a resolution, support the relocation 13 , and any other relevant factors are satisfactorily addressed. F F [Liquor Control and Licensing Act, sections 16(3) and 21(3); Liquor Control and Licensing Branch Policy] 4.4.4. Relocation at the same address Before consenting to the transfer of a licence for an establishment or the licensed area of an establishment relocating at the same address, the general manager may consider the same factors as are considered in a request for structural alteration. 14 F [Liquor Control and Licensing Act, sections 6(c), 20(1)(e), and 21(3); Liquor Control and Licensing Regulations, section 7; Liquor Control and Licensing Branch Policy] 4.4.5. Relocation of a liquor primary establishment The general manager may approve an application to relocate a liquor primary establishment provided the proposed new location: is within the same community as the existing establishment; and is within a reasonably close distance from the existing establishment and meets site and community assessment requirements in policy 4.4.3. A community is not necessarily synonymous with the same local government or First Nation jurisdiction. In general, to meet the requirement of “same community,” the relocation will be within the publicly recognized area in which the establishment is already located (e.g. the commercial core of a town or within a residential neighbourhood). In determining whether the proposed location is within a “reasonably close distance”, the general manager will consider whether the location is within comfortable walking distance from the existing establishment. [Liquor Control and Licensing Regulations, section 8(4) and Liquor Control and Licensing Branch Policy] 12 Site and community assessment factors include those factors relating to community characteristics and impact and to local government/First Nations input, as itemized in the policies under Site and Community Assessment in the chapter on Licensing Process. 13 The general manager may stipulate the format of the local government resolution. 14 See section 6.2.3 Structural Alterations in the chapter on Premises. SECTION 4 – BUSINESS OWNERSHIP AND CHANGES TO A LICENCE Page 12 Liquor Licensing Policy Manual 4.5 Valid Interest in an Establishment Policy Rationale Public interest concerns that liquor licence applications are dealt with through a fair and transparent process, and considerations of applicant suitability, are the roots of the policies governing valid interest in an establishment. As discussed in the earlier sections “Legal Name/Internal Ownership Changes” and “Change in Ownership or Sale of a Licensed Establishment”, a liquor licence is linked both to the licensee personally and to the establishment physically. Section 16(1)(b) of the Liquor Control and Licensing Act requires, as one feature of applicant suitability, that the applicant be the owner of the business carried on at the establishment for which the licence is sought. In addition to requiring ownership of the business, section 16(1)(c) of the Act requires that the applicant have a valid interest in the establishment, by prohibiting the granting of a licence to a person who is not either the owner or the lessee of the establishment. Section 4(1) of the Liquor Control and Licensing Regulations further clarifies that the person must be either the owner of the establishment or hold a 12-month lease for it. In other words, a liquor licence applicant must be both the owner of the business and the owner or lessee of the establishment at which the business is carried on. Together, these two elements constitute valid interest in an establishment. Under sections 17(1) and (2) of the Act, another person must not use a licence without the general manager’s approval. The general manager has approved lease or management arrangements with third parties, typically in recognition of the complexities of management in large, multi-use facilities such as hotel resorts, stadiums, recreation centres, or wineries. In any event, the statutory requirements that the licensee both own the business and own/lease the property must be met. The following policies focus on the requirement to provide documentary evidence of valid interest in the property and on the process and documentation required for approval of a lease or management contract with third parties. Policies 4.5.1. Establishment ownership or leasehold A licence shall not be issued, renewed or transferred to a person who, in the general manager’s opinion, is not the owner or lessee of the establishment or portion of the establishment to be licensed. Prior to issuing or transferring a licence, the general manager may require that appropriate documents be provided as evidence of: ownership of the establishment, or a lease that does not expire for at least twelve (12) months after the date of issue or transfer of the licence. Prior to renewing a licence, the general manager may require that appropriate documents be provided as evidence that the licensee is the owner of the establishment, or that the licensee holds a lease of a duration that is satisfactory to the general manager. Valid interest in a property may include percentage rent or profit sharing agreements within a lease, sublease or assignment of lease. Loss of valid interest in the establishment is reason for the general manager to consider cancelling the licence. [Liquor Control and Licensing Act, section 16(1)(c); Liquor Control and Licensing Regulations, sections 4(1) and 4(2); Liquor Control and Licensing Branch Policy] SECTION 4 – BUSINESS OWNERSHIP AND CHANGES TO A LICENCE Page 13 Liquor Licensing Policy Manual 4.5.2. Disputes regarding the validity of a lease In the event of a dispute between a lessor and lessee as to the continuing validity of a lease, the general manager will require the disputing parties to obtain a court order to determine whether the lease is null and void despite the terms on the face of the lease. [Liquor Control and Licensing Branch Policy] 4.5.3. Documents in the name of the licensee Evidence of valid interest in the property as specified in policy 4.5.1 will be in exactly the same name as the person(s) or corporation to whom the licence has been or will be issued. [Liquor Control and Licensing Branch Policy] 4.5.4. Proof of valid interest in property during licensing process Prior to licensing, the general manager may require an applicant to demonstrate valid and continuing interest in the property at each approval stage of the licensing process. [Liquor Control and Licensing Branch Policy] 4.5.5. Management contracts with third parties A licensee shall not allow another person to use his licence without having first obtained the written approval of the general manager. The general manager may approve a management contract for the operation of: Revised February 2013 liquor primary establishments, other than liquor primary clubs food primary establishments, catering licences, manufacturing establishments, on-site stores, manufacturer lounges, and special event endorsement areas, licensee retail stores, and wine stores provided the terms and conditions of the licence are met and provided the licensee continues to be accountable for the overall operation of the facility of which the licensed area is a part. [Liquor Control and Licensing Act, section 17(1) and (2); Liquor Control and Licensing Regulations, section 4(1); Liquor Control and Licensing Branch Policy] 4.6. Dormant Liquor Primary Licences Policy Rationale There are no minimum use requirements for liquor licences. Consequently, licensees may continue to hold liquor licences even if their establishments cease operation for reasons such as fire damage or financial difficulty. These inactive licences are referred to as “dormant liquor licences”. Although dormant liquor licences remain subject to the same legislative and policy requirements as active licences, there are potential negative impacts associated with dormant liquor primary establishments. For example, since the regulations require that consideration be given to the number and density of existing liquor primary licensed establishments when deciding whether to approve a liquor primary licence for a particular location, the existence of a dormant licence could contribute to the denial of a new licence application. Additionally, dormant establishments may reopen in areas that experienced a change in community standards during the dormancy, resulting in complaints from residents who did not know or had forgotten that the establishment was in their neighbourhood. SECTION 4 – BUSINESS OWNERSHIP AND CHANGES TO A LICENCE Page 14 Liquor Licensing Policy Manual The identification and monitoring of dormant liquor primary licences therefore assists in meeting the general manager's statutory obligations to consider the public interest when renewing liquor licences under section 16(3) of the Liquor Control and Licensing Act, and to supervise all licensed establishments in the province under section 6(3) of the Act. Policy 4.6.1. Definition of dormant licence and application of policy Dormant licence means a liquor licence held by an establishment (other than a seasonally-operated establishment) which is closed all or most of the time, and which may or may not reopen for business in the future. Policies directing that these establishments be reported and monitored will apply only in respect of liquor primary, food primary and licensee retail store establishments. [Liquor Control and Licensing Branch Policy] 4.6.2. Compliance with the Act, regulations, and terms and conditions of the licence If an establishment ceases operation but continues to hold a liquor licence, it must continue to comply with the Liquor Control and Licensing Act and regulations, and the terms and conditions of that licence. The establishment cannot operate as another business during the time the licence is dormant. When a dormant licence is suspected, a liquor inspector will verify that the establishment is closed and determine if it is in compliance with the Act, regulations, and terms and conditions of its licence. [Liquor Control and Licensing Act, sections 16(1)(d) and 20(1)(a)] 4.6.3. Reporting and monitoring dormant licences Liquor inspectors will report all dormant liquor primary licences to the Licensing Division. Once verified, all dormant licences will be assigned a "dormant" status on the branch database. Should an establishment again re-open or show signs of regular business activity, liquor inspectors will notify the Licensing Division of changes to the dormant status of the establishment. [Liquor Control and Licensing Branch Policy] SECTION 4 – BUSINESS OWNERSHIP AND CHANGES TO A LICENCE Page 15 Liquor Licensing Policy Manual SECTION 5: Hours of Operation 5.0 Introduction The hours during which a licensed establishment can sell or serve liquor is a key consideration at the time of licensing and later, as a condition of licensing, it continues to be monitored as long as the licence is in effect. In addition to the specific details about hours of sale, discussion of this topic also provides a particularly good illustration of the site and community assessment factors the general manager and local government or First Nations must consider in exercising discretion. Temporary changes to liquor service hours: Licensed premises are always licensed so that at any hour of any day the general manager retains statutory and supervisory authority over the premises. In most cases a liquor licence is issued for a year and it authorizes the licensee to sell and serve liquor on the days and times set out on the licence (the “liquor service hours”), subject to the terms and conditions of the licence. The terms “temporary de-licensing” and “temporary suspension” (the terms may be applied interchangeably), used frequently in the Guides and the Licensing Policy Manual, refer not to the licence itself, because the establishment is always licensed, but to the authorization to sell liquor. If a request for temporary de-licensing/suspension is approved, it is not that the premises are temporarily not licensed or that the licence is suspended but rather that the liquor service hours have been changed. (See particularly 5.2 and 5.3 below.) Note: A temporary suspension to allow for alternate use (5.2 and 5.3, below) must not be confused with a suspension of a licence as a result of an enforcement action. While suspended as a result of enforcement action, the licensee must not sell liquor, no other licence may be substituted and no applications for temporary or permanent change to the licence will be entertained. Although the licence specifies the days and times when liquor can be sold, licensees can choose not to serve or sell liquor during some of these time periods. If, however, a licensee wants to do something outside of what is permitted by the licence, the licensee must apply for a temporary delicensing/suspension, i.e. a temporary change to the liquor service hours and/or the terms and conditions of the licence. (See 5.2 and 5.3 below.) Temporary de-licensing/suspension is permitted only occasionally (in the order of 4-6 times a year) – if the venue has to de-license frequently that would raise questions whether the venue should be licensed at all, have a different type of licence or have different permanent hours of liquor service. This chapter includes the following sections: Hours of Sale Special Events, and Alternate Use. For hours of sale applicable to catering licences or catering endorsements, see section 14.8.5 (catered events) and 14.9.3 (residential events). For hours of sale applicable to UBrew/UVins, see section 18.3.4. 5.1 Hours of Sale Policy Rationale The hours during which a licensed establishment is open for the sale of liquor is one of the factors having a significant impact on the surrounding residents and businesses in a community. For this reason, SECTION 5 – HOURS OF OPERATION Page 1 Liquor Licensing Policy Manual particular attention is paid to hours of sale both in the legislation guiding liquor licensing and in the way the general manager exercises discretion in this area. The hours of sale for liquor primary establishments, food primary establishments, and licensee retail stores are set by regulation in sections 9(b), 11(2)(c), and 14(1)(b) of the Liquor Control and Licensing Regulations. 48 The hours of sale for manufacturer lounge and special event areas endorsements are set by regulation in section 18(3) and manufacturer picnic and tour area endorsements by section 18.1(8). Each of the applicable provisions contains the words “subject to limitation by the general manager”. Additionally, under section 12(3)(c) of the Liquor Control and Licensing Act, the general manager has the authority to impose terms and conditions that “limit the days and hours that an establishment is permitted to be open for the sale of liquor” if such limitations are in the public interest. The operative word in both sections 12(3)(c) of the Act and the relevant sections of the regulations is “limit” – the general manager may limit, but not expand the number of hours during which an establishment may sell liquor beyond that specified in the regulations. F F Other important words in section 12 of the Act are contained in the phrase “in the public interest” – the terms and conditions imposed by the general manager must be done in light of the pertinent public interest considerations. Section 53(4) of the regulations sets out three specific public interest criteria a local government or First Nation must take into account in providing comments to the general manager in respect of an application to extend the hours of a licensed establishment. These are: the potential for noise if the application is approved; the impact on the community if the application is approved; and, if in relation to a food primary establishment, whether the hours of liquor service may result in the establishment being operated in a manner that is inconsistent with an establishment primarily engaged in the service of food. Additionally, there is a range of other public interest factors established by branch policy that the general manager may also consider. 49 F For the most part, the considerations here are the same as those relating to community characteristics and impact examined during the initial licensing process. 50 It is through consideration of these factors, therefore, that the unique circumstances of the individual case can be accommodated and the best “fit” found between the licensed establishment and the community in which it conducts its business. F F The policies below stipulate both the nature of these public interest considerations and the general authority guiding the days and hours of sale for licensed establishments. Additionally, there are policies setting out the requirements for temporarily or permanently changing opening or closing hours. The table “Hours of Sale by Licence and Establishment Type” at the end of this section shows the hours of sale and any general manager’s limitations for a specific category of licence or type of establishment. The table outlines policy as it is generally applied; however, application may vary depending on the individual circumstances of each licence. Policies 5.1.1. General conditions in setting the hours of sale Subject to a limitation by the general manager in the licence, the days and hours an establishment is permitted to be open for the sale of liquor shall be those established by regulation. 51 F [Liquor Control and Licensing Act, section 12(3)(c); Liquor Control and Licensing Regulations, sections 9(b), 11(2)(c), 14(1)(b), 18(3), and 18.1(8)] See table entitled ‘Hours of Sale by Licence and Establishment Type’ for the duration and maximum hours of sale applying to each licence class and type of establishment, the specific reference in the regulations, and any restrictions set by the general manager. 49 See policy 5.1.2, below. 50 For a fuller discussion of the principles that guide the general manager’s decision making in the public interest, see the section on Operating Environment in the General Information chapter and later in the chapter on Licensing Process. 51 See table entitled ‘Hours of Sale by Licence and Establishment Type’ for the duration and maximum hours of sale applying to each licence class and type of establishment, the specific reference in the regulations, and any restrictions set by the general manager. 48 SECTION 5 – HOURS OF OPERATION Page 2 Liquor Licensing Policy Manual 5.1.2. Factors considered in the public interest in setting the hours of sale The general manager may impose, in the public interest, terms and conditions that may limit the days and hours an establishment is permitted to be open for the sale of liquor. In determining the days and hours of liquor service, for new and existing licences, the factors considered will include those considered by a local government or First Nation in relation to a licence amendment respecting hours of liquor service 52 as follows: F F the potential for noise if the application is approved the impact on the community if the application is approved, and if a food primary establishment, whether the amendment concerning the hours of liquor service may result in the establishment being operated in a manner that is contrary to its primary purpose and, therefore, inconsistent with an establishment primarily engaged in the service of food. Additional factors that may be considered in the public interest include: location of the licensed establishment hours of operation applying to nearby licensed establishments ability of the police to supervise the establishment, particularly at closing time availability of public transit options, such as taxies and buses licensee’s compliance history, and establishment’s history of compliance. [Liquor Control and Licensing Act, section 12(3)(c); Liquor Control and Licensing Regulations, section 53(4); Liquor Control and Licensing Branch Policy] 5.1.3. Application of licence amendment policy in temporary or permanent changes to opening or closing hours Both temporary and permanent changes to opening or closing hours require an amendment to a liquor licence. An application for a change involving: an extension of hours of liquor service at a liquor primary, liquor primary club, or manufacturer lounge or special event area, or hours of liquor service at food primary establishment ending after 12:00 a.m. will comply with the regulations and policy for notifying and considering comments from a local government or First Nation, as specified for a licence amendment. 53 F Revised December 2012 All temporary change applications are subject to policy 5.2.6., limiting them to in the range of 4-6 events per year. [Liquor Control and Licensing Regulations, section 53.] 5.1.4. Temporary and permanent changes to opening or closing hours 54 On application by the licensee, and in consideration of policies 5.1.1 through 5.1.3 and 5.2.6, the general manager may either temporarily or permanently amend the term and condition of a licence respecting hours of sale in order to: F increase or change the hours of sale to a later closing time, increase or change the hours of sale to an earlier opening time, or set different hours of sale on different days of the week. [Liquor Control and Licensing Act, section 12(3)(c); Liquor Control and Licensing Branch Policy] 52 53 54 See related policies under 3.5 Licence Amendments in chapter 3, Licensing Process. See applicable policies in 3.5 Licence Amendments. See related policy for temporary changes to opening or closing hours under Special Events in this chapter. SECTION 5 – HOURS OF OPERATION Page 3 Liquor Licensing Policy Manual 5.1.5. Variation of hours in areas specified by a local government or First Nation At the request of a local government or First Nation, and in consideration of the relevant public interest factors in policy 5.1.2, the general manager may vary the days and hours establishments are permitted to be open for the sale of liquor throughout an area specified by the local government or First Nation. If a local government or First Nation chooses to pass a by-law requiring all licensed establishments in a particular area to close at a time earlier than the time provided for on their liquor licences, the general manager may amend the terms and conditions of the liquor licences to be consistent with the requirements of the city by-law. In order for the general manager to consider the request of a local government or First Nation to reduce the hours establishments are permitted to be open for the sale of liquor, the local government or First Nation must ensure the following: Hours will only be rolled back to 2:00 a.m. and no earlier. Local governments or First Nations who choose to roll hours back to earlier than 2:00 a.m. will be responsible for enforcement of the earlier closing times. Prior to passing a by-law amending hours, local governments or First Nations must provide affected licensees with an opportunity to make submissions. If the general manager is satisfied that local government has provided licensees with an opportunity for input and has amended its bylaws accordingly, the general manager will write to the affected licensees and advise them that the hours on the liquor licence will be changed within 30 days to be consistent with the local government or First Nation by-law. [Liquor Control and Licensing Act, section 12(3)(c); Liquor Control and Licensing Branch Policy] 5.1.6. Hours of operation on the night of a time change On the night of a time change (i.e., the second Sunday in March and the first Sunday in November) a licensee must wait to change clocks forward or back until after the normal business day has ended. Specifically, a liquor-primary licensee and a manufacturer lounge or special event area licensee must adjust their clocks after the close of business when all patrons have cleared the establishment. A foodprimary licensee must not adjust their clocks until after liquor service has ended for the day and liquor has been removed from all patrons’ tables. [Liquor Control and Licensing Regulations, section 44(5); Liquor Control and Licensing Branch Policy] SECTION 5 – HOURS OF OPERATION Page 4 Liquor Licensing Policy Manual Hours of Sale by Licence and Establishment Type Licence and Establishment Type Hours of Sale Liquor Primary and Liquor Primary Club Establishments – hours between 9 a.m. and 4 a.m. of the next day [regulation section 9(b)] – the establishment must be cleared of patrons within one-half hour after the time stated on the licence for the hours of liquor service [Regulation section 44(1)(a)] - The establishment may not be used for another purpose between closing (within half an hour after the end of liquor service) and 6am the next day General Conditions: Food Primary Establishments • All Establishments – hours between 9 a.m. and 4 a.m. of the next day [regulation section 11(2)(c)] – liquor must be taken from patrons within ½ hour after the time stated on the licence for the hours of liquor service, unless the liquor is an unfinished bottle of wine that is sealed by the licensee for the patron [regulation section 44(1)(b)] – hours of sale limited to 12:00 midnight closing unless the licensee applies for and acquires a licence amendment, following appropriate local government/First Nation input as established by regulation and branch policy General Conditions: Limitations set by General Manager: Licensee Retail Stores and Wine Stores • All Establishments – between 9:00 a.m. and 11:00 p.m. [regulation section 14(1)(b)] General Conditions: Manufacturer Lounges and Special Event Areas • All Establishments – hours between 9 a.m. and 4 a.m. of the next day [regulation section 18(3)] General Conditions: Manufacturer Tour and Picnic Areas • All Establishments General Conditions: – Picnic area and outdoor tour area hours are between 9 a.m. and dusk. Dusk is defined as the period immediately following sunset. Indoor tour areas must not be in use later than the operating hours of the manufacturer’s other endorsement areas. [regulation section 18.1(8)] SECTION 5 – HOURS OF OPERATION Page 5 Liquor Licensing Policy Manual 5.2 Special Events Policy Rationale As mentioned in the previous section, the hours of sale for a licensed establishment are specifically set by regulation, and any limitations imposed by the general manager on these hours are expressed as a term and condition of a licence. Under normal circumstances, the hours of sale are fixed for as long as the licensed establishment is in operation. For special circumstances or events, however, the general manager may exercise some discretion in this area. One example of this is the policy to permit a licensed establishment to “… have extended hours of sale on December 31 until 4:00 a.m. on January 1, on the condition that food is available to patrons”. 55 Establishments not providing food must close their liquor service at the usual closing hour stated on their licence. F F Staff parties may also be an occasion on which licensees will want to have extended hours of operation. The policy below confirms that, provided a licensee can comply with the regular terms and conditions of their licence — and can keep within their regular hours of operation — for the duration of the party, a staff party may be held in the licensed establishment without any special arrangements or permission to do so. Licensees are reminded, however, that staff may not drink alcoholic beverages while on duty. On the other hand, if the licence terms and conditions cannot be complied with during the staff party, the licensee must apply for a temporary suspension of the licence. During the time specified for a staff party, the liquor licence is effectively suspended under the authority provided in section 23(1) of the Act. In its place, a private special occasion licence, taken out by the licensee, is in effect for the duration of the party. A licensee may also apply to the branch for a temporary suspension of the licence to hold a public or private special event hosted by the licensee or someone else. In either situation, a suspension for a food primary may be for any number of hours while a suspension for a liquor primary may start at any time but once the event is over and the establishment is closed it must stay closed for the rest of that business day until 6:00 a.m. The terms and conditions for events held in a licensed establishment are discussed in the policies below. Comprehensive information on special occasion licences is contained in the Liquor Control and Licensing Branch Special Occasion Licence Policy Manual. Revised December 2012 Temporary suspensions are intended to provide flexibility for licensees to accommodate occasional events on an exceptional basis and may therefore be used only for a very limited number of events. Frequent use of temporary suspensions has the effect of changing the establishment’s operating terms without local government or community input and is not permitted Policies 5.2.1. Extension of hours on New Year’s Eve A licensed establishment may have extended hours of sale on December 31 until 4:00 a.m. on January 1, regardless of normal closing hour, (on the condition that food is available to patrons) 56 , unless the general manager has directed otherwise, or local bylaws prohibit it. F F [Liquor Control and Licensing Act, section 12(3)(c); Liquor Control and Licensing Branch Policy] 55 56 See related policy under Pricing in the chapter on Liquor Service and Sales. See related policy about food and liquor service requirements on New Year’s Eve under Pricing in the chapter on Liquor Service and Sales. SECTION 5 – HOURS OF OPERATION Page 6 Liquor Licensing Policy Manual Revised May 2013 5.2.2. Conditions for staff parties A licensee may hold a staff party in their licensed establishment, provided they can comply with the regulations, terms, and conditions of their licence for the duration of the party. If the regulations, terms, and conditions of the licence cannot be complied with, the licensee must apply for the temporary suspension of their licence and obtain a special occasion licence or a catering authorization to hold the party. It is a condition of a liquor licence that staff may not drink alcoholic beverages while on duty, whether during the regular operation of an establishment or in the course of a staff party. [Liquor Control and Licensing Act, section 12(3); Liquor Control and Licensing Branch Policy] Revised May 2013 5.2.3. Temporary suspension of a licence for staff party Upon the written request of a licensee, the Liquor Control and Licensing Branch or, in the case of a food primary establishment, a liquor inspector may temporarily suspend a liquor licence for the purpose of holding a staff party within the licensed establishment. Prior to holding a staff party within the licensed area of the establishment, the licensee must apply for and obtain a private special occasion licence or a catering authorization57 to be in effect for the duration of the party, which may go no later than 2:00 a.m. 58 F [Liquor Control and Licensing Act, sections 6 and 23(1); Liquor Control and Licensing Branch Policy] 5.2.4. Temporary suspension of a food primary licence for a special event Upon the written request of a licensee, the local liquor inspector may temporarily suspend a food primary licence for the purpose of holding a public or private special event or a catered event within the licensed establishment. Prior to holding the event, the host (either the licensee or another party) must apply for and obtain a special occasion licence, or the caterer must obtain a catering authorization, to be in effect for the duration of the event. The following terms and conditions apply to these special events: Revised May 2013 the special event is temporary and only occasional the licence may be suspended for a period less than 24 hours if the establishment has more than one area, the licence may be suspended for a specified area of the establishment provided there are physical barriers to prevent patrons and liquor moving between the two areas there is at least one-half (½) hour between the event and the operation of the permanent licence in which no patrons are permitted within the suspended area of the establishment the liquor of the food primary licensee is secure and inaccessible to any patrons in the establishment consuming liquor under a special occasion licensed event or catering authorization (unless the licensee is catering the event using its catering endorsement), and all liquor served at the event must be purchased separately under the special occasion licence or the catering licence/endorsement, and not be taken from the licensee’s existing stock (unless the licensee is catering the event using its catering endorsement). [Liquor Control and Licensing Act, sections 6 and 23(1); Liquor Control and Licensing Branch Policy] 5.2.5. Temporary suspension of a liquor primary licence for a special event Upon the written request of a licensee, the Liquor Control and Licensing Branch headquarters may 57 If the licensee holds a catering endorsement, it may cater its own staff party, in accordance with section 14.4.3. Otherwise, the licensee may hire a licensed caterer to provide the food and liquor for the staff party. 58 Special Occasion Licences are issued by a liquor store manager or other person authorized by the general manager. Refer to the Special Occasion Licence Policy Manual for detailed policies. An SOL licence may be extended past 2:00 a.m provided the application is supported by the police and the local government or First Nation and approved by the Liquor Control and Licensing Branch. SECTION 5 – HOURS OF OPERATION Page 7 Liquor Licensing Policy Manual temporarily suspend a liquor primary licence for the purpose of holding a public or private special event or a catered event within the licensed establishment. Prior to holding the event, the host (either the licensee or another party) must apply for and obtain a special occasion licence, or the caterer must obtain a catering authorization, to be in effect for the duration of the event. The following terms and conditions apply to these special events: Revised May 2013 the special event is temporary and only occasional the licence will be suspended from one-half (½) hour before the start of the event through until the end of liquor service hours for that business day (which stretches over to the next calendar day if regular hours of service end after midnight): once the event is over and the establishment is closed for the night it must remain closed until at least 6:00 a.m. if the establishment has more than one area, the licence may be suspended for a specified area of the establishment provided there are physical barriers to prevent patrons and liquor moving between the two areas the liquor of the liquor primary licensee is secure and inaccessible to any patrons in the establishment consuming liquor under a special occasion licensed event or the catering authorization (unless the licensee is catering the event using its catering endorsement), and all liquor served at the event must be purchased separately under the special occasion licence or the catering licence/endorsement, and not be taken from the licensee’s existing stock (unless the licensee is catering the event using its catering endorsement). [Liquor Control and Licensing Act, sections 6 and 23(1); Liquor Control and Licensing Branch Policy] 5.2.6. Restriction on the frequency of temporary suspensions Temporary suspensions are generally permitted in the range of 4-6 events per year. In determining approval, consideration will be given to the cumulative effect of the requested changes and their impact on the operation of the licenced establishment. Temporary changes may not be used to change the operating terms and conditions of the licence or to circumvent local government and community input, where required. If a licensee wishes to operate with extended licence conditions on a more frequent basis, an application for a permanent change to the licence should be submitted. This policy applies to all types of temporary change applications, including temporary de-licensing for alternate use. Revised December 2012 The general manager may make exceptions to the limitation on the number of temporary change applications, depending on the type of business, nature of the proposed event, and other extenuating circumstances, such as where the regulations would not allow for the applicant to apply for a permanent change to the licence. 5.3 Alternate Use Policy Rationale In the policies below, the “alternate use” of a licensed establishment has been defined as “… a situation in which a licensee permits patrons to enter their licensed establishment for unlicensed events or activities during the hours when liquor service is not allowed under the licence or when the licence is temporarily suspended”. Alternate use policy was established to allow the establishment to be used for unlicensed events which are not reflective of the primary business of the licensed establishment (e.g. allows the use of a nightclub or bar for a community meeting or an exercise class). Policies governing alternate use are directly related to the duty of the general manager, under section 6 of the Liquor Control and Licensing Act, to “supervise the conduct and operation of a licensed SECTION 5 – HOURS OF OPERATION Page 8 Liquor Licensing Policy Manual establishment.” Liquor licences, and any specific conditions attached to a licence, are the primary tools the general manager uses to perform this duty. In exercising discretion to permit alternate use, the general manager must consider the extent to which the alternate use might undermine the licensee’s ability to meet the terms and conditions of their licence; for example, whether there is a potential for harmful activities, such as the sale of liquor to minors and persons who are intoxicated, and noise and nuisance factors for the community. Certain types of afterhours all-ages and minors events, such as raves, dance events, “House Parties”, and DJ dance shows, that are known to be problematic and have been linked with under-age intoxication are not permitted. Section 44(2) of the Liquor Control and Licensing Regulations specifically prohibits the licensee of a liquor primary and liquor primary club establishment from admitting patrons during unlicensed hours, unless otherwise authorized by the general manager. Since alternate use during licensed hours requires a temporary change application, and in keeping with the policy limiting the number of temporary change applications, the total number of temporary change applications, including temporary de-licensing for alternate use, are subject to the policy 5.2.6 restricting them to in the range of 4-6 per year. Revised December 2012 Under the authority of this section of the regulations, and the broader authority of section 12(2) of the Act to set licence terms and conditions in the public interest, the general manager has established specific rules to guide the alternate use of liquor primary and liquor primary club establishments during licensed and unlicensed hours. The policies below are intended to preserve the licensee’s ability to comply with the terms and conditions of their licence while, at the same time, offering a degree of flexibility in the way an establishment is used during and outside licensed hours. Policies 5.3.1. Definition and general requirements for alternate use of licensed establishments Alternate use is defined as a situation in which a licensee permits patrons to enter their licensed establishment for unlicensed events or activities during the hours when liquor service is not allowed under the licence or when the licence is temporarily suspended. Alternate use of a liquor primary and liquor primary club licensed establishment is permitted only under the conditions authorized by the general manager. Alternate use is not permitted for liquor retail stores. [Liquor Control and Licensing Act, sections 6 and 12(2); Liquor Control and Licensing Regulations, section 44(2); Liquor Control and Licensing Branch Policy] 5.3.2. Alternate use of food primary establishments Alternate use of a food primary licensed establishment is not restricted. Revised May 2013 5.3.3 Alternate Use for Catered Events Food primary licensees may have a catered event59 within their licensed area prior to or after their liquor service hours. Liquor primary licensees may have a catered event within their licensed area prior to their liquor service hours. Liquor primary licensees must comply with the terms and conditions in section 5.3.4. Food primary and liquor primary licensees may hold a catered event during their liquor service hours if they comply with section 5.2.2 – 5.2.6, and liquor primary licensees must also comply with the terms and conditions in section 5.3.5. 59 For information about catered events, see Section 14. SECTION 5 – HOURS OF OPERATION Page 9 Liquor Licensing Policy Manual Licensees may have a catered event outside of their licensed area in accordance with section 14.8.2. [Liquor Control and Licensing Act, section 86, 88; Liquor Control and Licensing Branch Policy] 5.3.4. Alternate use of liquor primary and liquor primary club licensed establishments prior to licensed hours Alternate use of a liquor primary and liquor primary club licensed establishment is permitted for unlicensed events or activities during the hours when liquor service is not allowed under the licence. The following terms and conditions apply to alternate use outside licensed hours: all liquor is secured and inaccessible for the period during which the unlicensed activities are taking place (unless the licensee is catering the event using its catering endorsement) there is at least one-half (½) hour between the licensed and unlicensed activities in which no patrons are permitted within the establishment All-ages and teen events are permitted prior to licensed hours; and the licensed establishment is not used for any purpose between the end of liquor service and 6 a.m. [Liquor Control and Licensing Act, section 12(2)(b); Liquor Control and Licensing Regulations, section 44(2); Liquor Control and Licensing Branch Policy] 5.3.5. Revised May 2013 Alternate use of liquor primary licensed and liquor primary club establishments during licensed hours Alternate use of a liquor primary and liquor primary club licensed establishment is permitted for unlicensed events or activities during the hours when liquor service is normally allowed under the licence, provided the Liquor Control and Licensing Branch first approves a temporary suspension of the liquor licence. Alternate use for LPs and LP clubs is permitted as long as the event is not reflective of the primary business of the establishment. Alternate use events for LPs and LP clubs must not be the same or similar to the licence held by the licensed establishment (e.g. nightclubs may not hold an all-ages nightclub or dance). De-licensing for these types of events is not permitted. Temporary suspensions during licensed hours by liquor primaries and liquor primary clubs are restricted to a limited number (in the range of 4-6) of events per year. A temporary suspension for alternate use will be for one-half (½) hour before the start of the event through until the end of liquor service hours for that business day (which stretches over to the next calendar day if the regular hours of service end after midnight). The temporary suspension of one area within the establishment may be permitted with other areas still operating under the liquor licence, provided there is adequate separation between the two areas to prevent staff and patrons from moving between the two areas with liquor in their possession. The following terms and conditions apply to alternate use during licensed hours: the alternate use of the establishment for unlicensed activities is temporary and only occasional all liquor within the area of the establishment to which the licence suspension is applicable is secured and inaccessible for the period during which the unlicensed activities are taking place (unless the licensee is catering the event using its catering endorsement) there is at least one-half (½) hour between the licensed and unlicensed activities in which no patrons are permitted within the area of the establishment to which the licence suspension is applicable minors may be permitted during the period of alternate use for unlicensed activities, and the area of the establishment to which the licence suspension is applicable is not used for any purpose between the end of liquor service and 6 a.m. [Liquor Control and Licensing Act, sections 6 and 12(2); Liquor Control and Licensing Regulations, section 44(2); Liquor Control and Licensing Branch Policy] SECTION 5 – HOURS OF OPERATION Page 10 Liquor Licensing Policy Manual SECTION 6: Premises 6.0 Introduction This chapter discusses topics related to the physical dimensions of, and facilities provided in licensed establishments. Perhaps the most important aspect of this topic is that the physical characteristics of an establishment affect how well licensees and their staff can manage areas licensed for the sale and consumption of liquor. A common theme in this chapter is, therefore, the general manager’s duty to “supervise the conduct and operation of licensed establishments” [section 6(c) of the Liquor Control and Licensing Act] and tools the general manager uses to perform this duty. Topics in this chapter are organized under the following headings: Posting of Licence and Access to Approved Plans Structural Alterations Capacity Outdoor Patios Adjoining Licensed and Unlicensed Areas Restaurant Lounges Restaurant Detail and Furnishings Liquor Service Bars in Restaurants 6.1 Posting of Licence and Access to Approved Plans Policy Rationale Liquor inspectors and the police enforce the requirements of the Liquor Control and Licensing Act and Regulations. To do this effectively, the first things they must know is whether an establishment has a valid liquor licence and whether any special conditions apply under the licence. The general authority to inspect the books, premises, and stock of licensees is given under section 73 of the Act. Section 37 of the Liquor Control and Licensing Regulations goes further to require licensees to post their liquor licence in a conspicuous place in the licensed establishment. Posting the liquor licence in a prominent location in the licensed area makes it readily available at all times for inspection by the police and liquor inspectors. It also informs the consuming public that the establishment is properly licensed and that certain rules are observed in compliance with licensing requirements. Section 37 of the regulations also requires licensees to provide access to the approved floor plans when requested by the general manager. In effect, these plans form part of the liquor licence since they specify the physical dimensions of any areas within the establishment that are licensed for the sale and consumption of liquor. As with the licence certificate and any associated licence conditions, quick and easy access to this information is important for liquor law enforcement. Policies 6.1.1. Availability of liquor licence and approved floor plans for inspection A liquor inspector, police officer, or other person designated by the general manager may inspect: the liquor licence, and any special conditions that apply under the licence, and a copy of the floor plans of the establishment as approved by the general manager. Licensees must post their liquor licences in a prominent location within the licensed establishment at all times, and have a copy of the approved floor plans readily available to be accessed upon request. SECTION 6 – PREMISES Page 1 Liquor Licensing Policy Manual [Liquor Control and Licensing Act, section 73; Liquor Control and Licensing Regulations, section 37; Liquor Control and Licensing Branch Policy] 6.2 Structural Alterations Policy Rationale Under section 6 of the Liquor Control and Licensing Regulations, the general manager is required to reset the person capacity of the establishment before approving a structural alteration of a licensed establishment, or a change to the size of any area within the establishment. Section 7 further requires that licensees obtain written permission from the general manager before making any structural alterations or changes to the licensed area of their establishments. The reasons for these provisions are related to the performance of the general manager’s duty to “supervise the conduct and operation of licensed establishments” under section 6(c) of the Liquor Control and Licensing Act. Specifically, problems of over-service, over-consumption, and loss of control within a licensed establishment are related, in part, to the extent to which the physical dimensions and layout of the establishment help or hinder staff in effectively managing the licensed area. Enlargements or other changes to the floor plan may significantly affect the conduct and operation of the establishment as a whole and, therefore, require prior approval of the general manager. Additionally, structural alterations that result in an increase in the person capacity of the licensed establishment may impact the surrounding neighbourhood because of noise and parking or traffic concerns. Section 6(1)(b) of the regulations requires the general manager to set the person capacity of the establishment “… having regard to the public interest and the views of a local government or first nation …” before approving a structural alteration. For this reason, then, the same policies and practices that apply in setting the person capacity during the building assessment phase of an original licence application also apply in relation to a structural alteration. Since the Act and regulations do not define a “structural change”, the branch has developed a definition describing the kinds of changes that interest the general manager. The following policies articulate the manner in which the general manager interprets the responsibilities imposed under these provisions, and sets out the kinds of alterations that should be submitted for approval while licensees are still at the planning stage of their renovations. Policies 6.2.1. Definition of structural alteration or enlargement A structural alteration or enlargement is defined as a change to existing construction resulting in a change to the free space within a licensed area, including a change: in the position of a wall, floor or ceiling surrounding a licensed area in the position of new construction or removal of fixed articles such as planters, partial height divider walls, columns, pillars, ornamental displays, food and liquor service bars, stages and dance floors in the position of access and exit points leading to or from a licensed area, including any opening through which liquor is intended to pass by the addition of a lounge area in a food primary establishment to permitted fencing surrounding an outdoor patio, and such other construction or changes the general manager considers may affect patron routing, capacity, or the line of sight between a staff control point and the licensed area of the establishment. [Liquor Control and Licensing Branch Policy] SECTION 6 – PREMISES Page 2 Liquor Licensing Policy Manual 6.2.2. Structural alterations which amount to new premises Occasionally, licensees will request approval for a structural alteration to expand their licensed area but the circumstances are such that a new licence is actually required. These changes may include situations where whole new structures are built attached to, or right next to, the existing premises. A connecting passage between the two areas does not in and of itself allow the licensing of the new area by way of a structural alteration. A separate liquor licence will generally be required when any of the following criteria apply: The new area has a different civic address or legal description than the existing establishment; The new area is generally recognized to be a separate establishment (e.g., if it has a separate public entrance or a different establishment name); The intended use and physical structure suggests that patrons would not normally move between the new area and the existing establishment; The new area has different hours: generally, different hours under one licence are only allowed for patios; The new area has a different focus and/or terms and conditions that would make it difficult to manage and/or enforce the terms and conditions of the licence: for example, a nightclub and a casino at the same address may require separate licences as one offers evening and night time entertainment with liquor and food service while the other is a gaming facility. 6.2.3. Setting person capacity for a structural alteration or change in size of the licensed area 1 After building and fire authorities have approved the plans, and before approving a structural alteration or a change to the size of any area of a licensed establishment, the general manager must set the person capacity of the establishment. The policies and practices that apply in setting the person capacity: F during the building assessment phase of an original licence application, or in the event of an increase in person capacity, during an application to amend a licence also apply in setting the person capacity under these circumstances 2 . F F [Liquor Control and Licensing Regulations, sections 6(1) through (3); Liquor Control and Licensing Branch Policy] 6.2.4. Approval of structural alteration or enlargement The general manager 3 may approve a request for the structural alteration or enlargement of a licensed establishment if the plans for such alterations do not: F F adversely affect patron routing into, through, or out of the licensed area result in an occupant load exceeding the capacity allowable under the liquor licence 4 break the line of sight between a point of staff control and the licensed area contravene specifications established by health, building, fire and other local or provincial government authorities F See the section on “Capacity” earlier in this chapter for more information about the person capacity of licensed establishments. See policy 3.4.6, “Setting person capacity during the original licence application” in 3.4 Building Assessment and Issue of a Licence, and related policies in 3.5. Licence Amendments. 3 When the plans for structural alterations or enlargements to the licensed area meet all statutory and policy requirements, the plans may be approved by a licensing administrator (see policy on Change Approval Authority). 4 For any structural enlargement or alteration, local building or fire officials will need to calculate the occupancy load figure — a figure representing the maximum number of persons that can safely occupy a building or part of a building. This new figure must not be greater than the capacity allowable under the liquor licence. If it is greater, the licensee must submit an “Application for Permanent Change to a Liquor Licence” and go through the process of acquiring local government/First Nations input and a change in the capacity of the licensed establishment. See related polices under Capacity later in this chapter. 1 2 SECTION 6 – PREMISES Page 3 Liquor Licensing Policy Manual violate conditions that apply to a particular class of liquor licence and/or a particular establishment otherwise interfere with the competent conduct and operation of the establishment. [Liquor Control and Licensing Act, section 6(c), Liquor Control and Licensing Regulations, section 7; Liquor Control and Licensing Branch Policy] 6.2.5. Written decision The decision to approve or reject structural alterations or area enlargements to a licensed establishment will be confirmed in writing with the applicant. [Liquor Control and Licensing Regulations, section 7] 6.3 Capacity Policy Rationale As with other conditions pertaining to licensed premises, the capacities of the licensed areas within establishments must be considered in the context of effective management of the licensed areas, potential impacts on the local community and public safety concerns. Section 6(1) of the Liquor Control and Licensing Regulations requires the general manager to set the person capacity of an establishment, “… having regard to the public interest and the views of a local government or first nation”. It is under the authority of this section, therefore, that the general manager exercises discretion in connection with the capacity of licensed establishments. When doing so, the general manager, in keeping with the duty to “supervise the conduct and operation of licensed establishments”, will place considerable emphasis on the relationship between capacity and the ability of the licensee and staff to manage the licensed area. The numbers must allow for the observation of patron behaviour, and the ability of staff to observe behaviour may be affected by activities such as entertainment involving patron participation. Public interest issues that commonly arise in making decisions about capacity include safety concerns and potential impacts on the community. From a fire safety perspective, consideration must be given to the minimum amount of space per person that will allow safe movement within, and exit from, the building in the event of fire. Here again, the kinds of activities taking place in the establishment will obviously be a significant factor. The B.C. Fire Code, B.C. Building Code, and local rules or bylaws such as the Vancouver Building Bylaw establish “occupant loads”, representing the maximum number of persons that can safely occupy a building or part of a building at any given time. The allowable “person capacity” 5 with which establishments are licensed by the Liquor Control and Licensing Branch conform to these occupant load standards. Indeed, under section 6(2) of the Liquor Control and Licensing Regulations, “… the general manager must refuse to issue, amend or transfer a licence … if the occupant load of the establishment is not equal to the person capacity”. F F The presence of a licensed establishment may have significant impacts upon nearby residents and businesses. A local community will be concerned with parking and traffic flows, and with any noise or nuisance issues that may arise with particular premises or types of establishments. Because of the implications capacity can have for a local community, sections 10(3) and 53(4) of the regulations stipulate that a local government or First Nation must take these issues into account in considering the person capacity of a liquor primary establishment or a manufacturer lounge or in the case of a manufacturer Prior to December 1, 2001, new licences were issued with a “patron capacity” figure — a figure that represented the maximum number of patrons (excluding staff, entertainers, or other persons) permitted in the licensed area of the establishment. Renewals of licences for which the original application was prior to December 1, 2001, and for which no subsequent applications to change capacity have been approved, will continue to reference the term “patron capacity”. All licences originating since that date have been issued — and will be renewed — with a “person capacity” figure that is equal to the occupant load figure assigned by provincial and local building and fire safety authorities. This figure represents the maximum number of all persons (including patrons, staff, and any other persons) permitted in the licensed area. 5 SECTION 6 – PREMISES Page 4 Liquor Licensing Policy Manual special event area the size of that area. There are, in addition, a range of other factors the general manager may consider in the public interest — largely those factors which address the licensee’s ability to comply with the terms and conditions of the licence. The policies below detail these considerations as well as the technical requirements of setting person capacity for new and existing licences. They also outline the way in which licence amendment policies apply in respect of temporary or permanent changes in person capacity. 6 F Policies 6.3.1. General considerations in setting person capacity The general manager must set the person capacity7for liquor primary, liquor primary club, and food primary licensed establishments and manufacturer lounges and interior special event areas.8 The person capacity of a licensed establishment shall be equal to the occupant load of the establishment, which is the lesser of the following:9 the maximum number of persons permitted in the establishment under the Provincial building regulations; the maximum number of persons permitted in the establishment under the Fire Services Act and British Columbia Fire Code Regulation; and the maximum number of persons permitted in the establishment under any other safety requirement enacted, made or established by the local government or First Nation for the area in which the establishment is located. [Liquor Control and Licensing Regulations, sections 1 and 6; Liquor Control and Licensing Branch Policy] 6.3.2. Factors considered in the public interest in setting person capacity In setting the person capacity of a licensed establishment, for new and existing licences, the factors considered will include those considered by a local government or First Nation in relation to a licence amendment 10 as follows: F F the potential for noise if the proposed person capacity is approved, and the impact on the community if the proposed person capacity is approved. Additional factors that may be considered in the public interest include: whether the number of persons implied by the capacity figures allows the licensee to maintain effective management and control of the licensed area location of the licensed establishment capacities of nearby licensed establishments licensee’s compliance history, and establishment’s history of compliance. [Liquor Control and Licensing Regulations, section 53(4); Liquor Control and Licensing Branch Policy] 6 See related discussion and policy under 3.5 Licence Amendments. The term “person capacity” is defined in section 1 of the Liquor Control and Licensing Regulations as “… the maximum number of persons allowed by the general manager in the establishment”. 8 The capacity is not set for licensee retail stores, wine stores, catering licences, UBrew/UVin, and manufacturer tour and picnic areas, because of the nature of these establishments or endorsement areas. 9 In other words, although the authorities in the bulleted list below may arrive at different figures for the number of persons that should be permitted in the licensed establishment, the occupant load shall be the lesser of all these figures. 10 See related policies under 3.5 Licence Amendments in chapter 3, Licensing Process. 7 SECTION 6 – PREMISES Page 5 Liquor Licensing Policy Manual 6.3.3. Application of licence amendment policy in permanent changes to capacity Permanent changes to capacity 11 require an amendment to a liquor licence. An application for a change involving an increase in the patron or person capacity of a liquor primary, liquor primary club, a manufacturer lounge, or in the case of a manufacturer special event area an increase in the size of that area, must be in compliance with the regulations and policy for notifying and considering comments from a local government or First Nation, as specified for a licence amendment. 12 F Revised April 2013 F F The general manager, in deciding whether to approve a request for a permanent change to capacity, will consider the same factors as are considered in reviewing the plans and setting person capacity in an original licence application. 13 F [Liquor Control and Licensing Regulations, sections 53 and 54; Liquor Control and Licensing Branch Policy] 6.4 Outdoor Patios Policy Rationale Policies concerning outdoor patios flow from earlier capacity policies and address the same public interest concerns of potential over-service and over-consumption, as well as effective management of a licensed area. Similar public interest considerations to those that relate to the initial building assessment phase of the original licence application process also apply to applications for outdoor patio endorsements. These considerations include health and safety concerns, and the ability of the licensee and staff to maintain control throughout the establishment. Staff supervision of access and egress points for a patio is of particular concern — especially as it relates to the possibility of access to the licensed area by minors. Liquor service on an outdoor patio may significantly impact facilities, businesses and residents in the immediate vicinity of the establishment. Because of this, licence conditions such as hours of operation, capacity, and entertainment will have a bearing on whether or not an outdoor patio will be considered. These factors are all relevant in assessing noise and other effects likely to be felt by surrounding neighbours. Concerns about health, safety and community impact are, therefore, paramount in considering outdoor patio service for liquor primary licensed establishments. Section 53 of the regulations governing licence amendment processes, and the following policies reflect this by requiring that the views of local government and First Nations be considered on applications for outdoor patios. By contrast, the primary operating purpose of a food primary licensed restaurant is to serve food, with liquor service available only as a complement to a meal. As such, a food primary establishment may have patios provided local building and zoning bylaws permit them. Patios are not considered for retail stores, which are licensed only for the sale of packaged liquor. Consumption is not permitted on the premises, with the exception of product demonstrations offered by manufacturers and their agents. Policies 6.4.1. General considerations in outdoor patio applications Subject to considerations in the public interest, the general manager may designate outdoor areas of a licensed establishment where liquor may be sold and served. In determining whether to designate the outdoor patio of a liquor primary or liquor primary club licensed establishment or a manufacturer lounge 11 Temporary or permanent capacity changes would include those in which licensees apply to have patron capacity figures replaced with person capacity figures. 12 See applicable policies in 3.5 Licence Amendments. 13 See policies 3.4.3 through 3.4.5 of 3.4 Building Assessment and Issue of a Licence. SECTION 6 – PREMISES Page 6 Liquor Licensing Policy Manual or special event area as an area of the establishment in which liquor will be consumed, the factors considered will include those considered by a local government or First Nation in relation to a licence amendment 14 as follows: F F the potential for noise if the patio is approved, and the impact on the community if the patio is approved. Additional factors that may be considered in the public interest include: whether the licensee can maintain effective management and control of the outdoor patio area whether the size and location of the outdoor patio negatively impacts surrounding residents and businesses; and such other factors as may be relevant in the public interest. [Liquor Control and Licensing Act, section 12(3)(b); Liquor Control and Licensing Regulations, section 53(4); Liquor Control and Licensing Branch Policy] 6.4.2. Specific considerations in outdoor patio applications In making a determination under policy 6.4.1, the general manager may consider whether the outdoor patio area has the following characteristics: perimeter is suitably defined and bounded in order to control patron entry and exit (e.g. through fencing, planters, hedges, roped stations etc.) does not appear to be a standalone patio unassociated with the licensed interior (a manufacturer lounge, however, may be a standalone patio that is associated with a winery, brewery or distillery) suitably designed and located to prevent noise nuisance to nearby residents or passers-by may be located on a grassed, earthen or gravelled area rather than finished flooring, provided they are approved by local health inspection authorities if located on a sidewalk or other public property, written approval from the local government has been provided complies with health and fire regulations may have fixed or portable food and liquor service bars designed to minimize the occasions where servers would be required to pass through unlicensed areas carrying liquor designed to ensure effective management and control of the outdoor patio from the indoor licensed area (if applicable) must, whenever possible, be located immediately adjacent or contiguous to the interior licensed area (if applicable). In the event a patio is not immediately adjacent, only servers are permitted to carry liquor through unlicensed areas. [Liquor Control and Licensing Act, section 12(3)(b); Liquor Control and Licensing Branch Policy] 6.4.3. Application of licence amendment policy to outdoor patio applications The addition of a patio to a licensed establishment requires an amendment to a liquor licence. An application for the addition of a patio to a liquor primary or liquor primary club establishment or a manufacturer lounge or special event area will comply with the regulations and policy for notifying and considering comments from a local government or First Nation, as specified for a licence amendment. 15 F [Liquor Control and Licensing Regulations, section 53] 14 15 See related policies under 3.5 Licence Amendments. See applicable policies in 3.5 Licence Amendments. SECTION 6 – PREMISES Page 7 Liquor Licensing Policy Manual 6.5 Adjoining Licensed and Unlicensed Areas Policy Rationale The policy on this topic is designed to address the key concerns that arise when a licensed establishment adjoins or shares facilities with another; specifically, public access from one area to the other and the effects upon the licensee’s ability to manage and control the licensed area. The focus is on the general considerations brought to bear in any decision to approve adjoining premises, and on establishing the policy for combinations of licensed and unlicensed premises that have not been dealt with elsewhere. Once again, general authority is provided by section 12(2) of the Liquor Control and Licensing Act that permits the general manager to impose terms and conditions in the public interest. Additionally, section 38 of the regulations requires that a licensed establishment must be separated from an unlicensed area, from another licensed area under a different category of licence, or from a catered event, in a manner that is satisfactory to the general manager. When a licensed liquor primary area adjoins either an unlicensed area or a food primary licensed restaurant, one of the most significant concerns that must be addressed in the licence terms and conditions will be the possibility of access to the licensed area by minors. This includes not only physical access, but also visual access to adult-oriented activities that are not considered appropriate for minors to view. Control of minors and person capacity are also issues when a licensed area shares washroom facilities with an unlicensed establishment. For these situations, branch policy is designed to ensure that patrons do not have to pass through the licensed area in order to reach the washrooms. Other features of the policy governing adjacent licensed and unlicensed areas are designed to ensure patrons do not carry liquor from the licensed to the unlicensed area. Control of access points between the establishments is the primary element of the policy governing food primary licensed restaurants adjoining liquor licensed areas such as pubs or lounges. As well as controlling physical access, the policy restricts visual access from a restaurant into an adjoining liquor primary licensed area out of concern for minors observing adult-oriented entertainment in the liquor primary licensed area. On the whole, the rationale for physical and sight separation between two establishments is based on a concern about the impact of one type of establishment on the other. Without this separation, it would be difficult for staff and patrons to know where one establishment begins and another ends. Licensees must ensure that the areas are distinct, and that people know that different operating conditions are in effect. Additionally, assessing capacity levels can be problematic without clear physical separation between the two areas. For example, when a pub fills up — not an uncommon situation for pubs with a smaller capacity — patrons might be seated in an adjoining restaurant. Visual and physical access between the two establishments can make it difficult for staff to maintain effective management and control in both of the licensed areas. Finally, for shared or adjoining facilities between licensee retail stores or wine stores and licensed or unlicensed areas, the main thrust of the policy is to maintain clear separation between the two areas. Effective management and control of the areas licensed for liquor service or sales – and an appreciation by the staff of the rules and responsibilities that apply to them in the respective areas – is better achieved when the different areas are clearly distinguishable. At the same time, the branch is conscious of the cost to licensees of providing facilities (such as kitchens and washrooms) that might reasonably serve both areas. This chapter deals specifically with adjoining food primary and liquor primary establishments, and food primary or liquor primary establishments and adjoining unlicensed areas. For specific policy on other adjoining areas, see: section 6.4, for patios adjoining the licensed areas of liquor primary establishments, food primary establishments, or manufacturer lounges SECTION 6 – PREMISES Page 8 Liquor Licensing Policy Manual section 17.20.7, for manufacturer lounges with adjoining or overlapping sampling rooms or on-site stores and tour areas that overlap other endorsement areas section 14.8.3, for catered events section 15.2. and 15.3, for licensee retail stores section 16.4 and 16.5, for wine stores Policies 6.5.1. General considerations in granting approval for shared or adjoining facilities Subject to considerations in the public interest, the general manager may grant approval for licensed establishments to share kitchen, washroom, and/or lobby entrance areas, or maintain adjoining walls or entrances with other licensed or unlicensed areas. In determining whether to grant approval for adjoining or shared facilities, the general manager may consider: whether the licensee can maintain effective management and control of the licensed area(s) whether the size and location of the shared facilities negatively impacts patrons in the adjoining licensed or unlicensed areas, and such other factors as may be relevant in the public interest. [Liquor Control and Licensing Act, section 12(2); Liquor Control and Licensing Regulations, section 38; Liquor Control and Licensing Branch Policy] 6.5.2. Shared or adjoining facilities between food primary and liquor primary licensed establishments In making a determination under policy 6.5.1, the general manager may consider whether the combined or adjoining food primary and liquor primary licensed establishments have the following characteristics: both licensed establishments may be owned and operated by the same licensee, but a physical separation between the two establishments is maintained at all times separation between the two licensed establishments is sufficient to determine a separate occupant load for each of the licensed establishments, to prevent the food primary establishment from becoming an extension of the liquor primary establishment, and to control access and egress to both establishments separation between the two licensed establishments is fixed and immovable to ensure that the limits on the size of both establishment are maintained if adult entertainment is provided in the liquor primary area (see 11.5.1), the divider or other separation between the licensed establishments is sufficient to prevent a line of sight between the two licensed establishments patrons in the food primary establishment have access to washrooms without having to go through the liquor primary establishment, or shared washroom facilities are accessible from a common interior lobby access to the liquor primary establishment from a public thoroughfare may be through the food primary establishment, but access to the food primary area from a public thoroughfare may not be through the liquor primary area, and patios in both establishments are clearly separated with no direct access between the two. [Liquor Control and Licensing Regulations, section 38(2); Liquor Control and Licensing Branch Policy] 6.5.3. Shared or adjoining facilities between a food primary licensed establishment and an unlicensed area 16 In making a determination under policy 6.5.1, the general manager may consider whether the combined or adjoining food primary licensed establishment and unlicensed area have the following characteristics: F 16 See Restaurant Operating Details and Furnishings later in this chapter for further information. SECTION 6 – PREMISES Page 9 Liquor Licensing Policy Manual separation between the licensed and unlicensed areas is sufficient to determine a separate occupant load for the food primary licensed establishment, and to control access and egress to the licensed area separation between the two licensed areas is fixed and immovable to ensure that the size of the food primary establishment is maintained if adult entertainment is provided in the unlicensed area (see 11.5.1), dividers or other separation prevent a line of sight between the licensed and unlicensed areas the liquor service area is situated so that drinks containing liquor are not carried across or through an unlicensed area dividers or other means of separation are not designed in such a way that drinks can be placed on them or accessed from the unlicensed area, and drinks containing liquor may not be taken from the licensed area to an unlicensed area by patrons, and signs to this effect are posted at all exit points from the restaurant or other licensed area [Liquor Control and Licensing Regulations, section 38(1); Liquor Control and Licensing Branch Policy] 6.5.4. Shared or adjoining facilities between a liquor primary licensed establishment and an unlicensed area that is not primarily involved in hospitality, entertainment, food, or beverage service In making a determination under policy 6.5.1, and if the unlicensed area sharing facilities with or adjoining a liquor primary licensed area is not primarily involved in hospitality, entertainment, food, or beverage service, the general manager may consider whether the combined or adjoining liquor primary licensed and unlicensed areas have the following characteristics: separation between the licensed and unlicensed areas is of full height wall construction, and is fixed and immovable a separate and dedicated entrance is maintained for each of the licensed and unlicensed areas, and access to the liquor primary establishment may be from a public thoroughfare 17 , but access to the unlicensed area is not permitted through the liquor primary establishment. F F [Liquor Control and Licensing Regulations, section 38(1); Liquor Control and Licensing Branch Policy] 6.5.5. Shared or adjoining facilities between a liquor primary licensed area and an unlicensed area that is primarily involved in hospitality, entertainment, food, or beverage service In making a determination under policy 6.5.1 and if the unlicensed area sharing facilities with or adjoining a liquor primary licensed area is primarily involved in hospitality, entertainment, food, or beverage service, the general manager may consider whether the combined or adjoining liquor primary licensed and unlicensed areas have the following characteristics: separation between the licensed and unlicensed areas is sufficient to determine a separate occupant load for the liquor primary licensed establishment, and to control access and egress to the licensed area separation between the two areas is fixed and immovable to ensure that the size of the liquor primary establishment is maintained if adult entertainment is provided in the licensed area (see 11.5.1), dividers or other separation prevent a line of sight between the licensed and unlicensed areas, and the entrance to the liquor primary establishment may come from within the adjoining unlicensed area. 18 F 17 For example, a shopping mall concourse is a public thoroughfare from which access to the liquor primary area would be permitted under these circumstances. 18 For example, entrance to a lounge may come from within an adjoining golf clubhouse. SECTION 6 – PREMISES Page 10 Liquor Licensing Policy Manual [Liquor Control and Licensing Regulations, section 38(1); Liquor Control and Licensing Branch Policy] 6.6 Restaurant Lounges Policy Rationale Under section 12 of the Liquor Control and Licensing Regulations, licensees of food primary establishments with a total licensed capacity of 50 persons or more may apply for a licence endorsement for a lounge area. In applying for this endorsement, the licensee must be able to demonstrate that the lounge area will appear to be visibly distinct from the primary dining area. A games or dance area may not be located in the lounge area. Once approved and open to restaurant patrons, food service must be available at all times in the lounge, and liquor service must only be offered if the primary dining area of the restaurant is also fully open for service. Before approving an application for a lounge endorsement, the general manager must specify the person capacity for the lounge area by applying the formula set out in section 12(2) of the regulation. The person capacity of a lounge area is either forty persons or 20% of the person capacity of the interior of the principal dining areas of the licensed establishment (not including banquet rooms or patios), whichever is the lesser. An establishment may have two lounge areas as long as one of the areas is on a patio and the combined number of persons permitted in the two lounge areas does not exceed the lounge capacity limit (40 persons/20% dining capacity) for that establishment. The last policy, below, identifies available seating and other furnishings in a lounge as an indicator of compliance with these person capacity requirements. If a liquor inspector finds seating in excess of the licensed person capacity in the lounge, they may consider this to be evidence of overcrowding. Policies 6.6.1. General conditions for a restaurant lounge For FP licensed establishments with a person capacity of at least 50 persons, the general manager may endorse the licence for the sale of liquor in a lounge area. The following terms and conditions apply to a lounge endorsement: food service must be available in the lounge the licensee must not serve liquor in the lounge if the primary dining area of the licensed establishment is not open for service of its full food menu and liquor service, a games or dance area may not be located in the lounge, the lounge must, in the opinion of the general manager, appear to be an area that is visibly distinct from the primary dining area of the licensed establishment, there must be a sign, visible to all lounge patrons, either at the entry to, or within the lounge(s), explaining that it is a lounge and that minors are only permitted if they are accompanied by an adult, and if the layout of the establishment requires that patrons of the principal dining area cross a lounge area to use the washrooms, then unaccompanied minors may cross the lounge to and from the washrooms. The FP lounge area must clearly and obviously appear to anyone who enters the premises to be distinct from the principal dining area in which it is located. This requirement may be met by having the FP lounge area located at the bar, in a raised area, in an area with a visibly distinct type or colour of flooring, or having different seats or seating coverings and colours from those provided in the principal dining area. Pony walls, planters or other forms of physical barrier separating the FP lounge from the primary dining area may be used but they are not required if the lounge area appears visibly distinct by using these architectural and design techniques. SECTION 6 – PREMISES Page 11 Liquor Licensing Policy Manual A lounge located on a patio must also appear to be visibly distinct from the rest of the patio. This requirement may be met by the same architectural and design techniques as apply to interior lounges. [Liquor Control and Licensing Act, section 12(2); Liquor Control and Licensing Regulations, section 12(1) and (5); Liquor Control and Licensing Branch Policy] 6.6.2. Setting person capacity for a restaurant lounge Before approving an application for a lounge endorsement, the general manager must set the person capacity of the lounge area. The person capacity of the lounge area will be: forty (40) persons, or 20% of the capacity of the interior of the principal area of the licensed establishment whichever is the lesser. The interior area must have an updated occupant load so that the eligible number of seats may be calculated. [Liquor Control and Licensing Regulations, section 12(2); Liquor Control and Licensing Branch Policy] 6.6.3. Restaurant patio lounges The general manager may approve a lounge located on an outdoor patio, in addition to a lounge in the interior of the licensed establishment, provided that the person capacity of each of the lounge areas does not exceed the person capacity set under policy 6.6.2, and if both lounges are open for liquor service at the same time, the combined total number of persons in both the patio and interior lounge does not exceed the person capacity set by the general manager under policy 6.6.2. The general manager may also approve a single lounge located solely on a patio. [Liquor Control and Licensing Regulations, sections 12(3) and (4)] 6.6.4. Seating in the lounge area of a restaurant The chairs, booths, benches, stools, or other furniture provided for patron seating in the lounge area of a food primary licensed establishment should not exceed the patron capacity of that area, as set under policy 6.6.2. A liquor inspector may consider seating in excess of the licensed capacity as evidence of overcrowding in the lounge area. [Liquor Control and Licensing Branch Policy] 6.7 Restaurant Operating Details and Furnishings Policy Rationale Section 11(1) of the Liquor Control and Licensing Regulations, which states that a food primary licence may be issued to the owner and operator of an establishment if “… the primary business carried on in the establishment is the service of food during all hours of its operation”, clearly distinguishes between the food primary and liquor primary categories of licence. In part, it is the specific operating details and furnishing requirements of a food primary establishment that maintains the distinction between the two. Under section 11(3) of the regulations, a licensed restaurant must have kitchen equipment and an adequate supply of flatware, china and other table facilities, and offer a reasonable selection of menu items. The business aspects of the operation must also be consistent with food service: the hours of operation, financial records, and the ratio of receipts for food sales to that of liquor sales must be what one might expect of an establishment in the business of food service. Other aspects of restaurant decor are regulated by policy to ensure the operation of the restaurant and behaviour of patrons does not become SECTION 6 – PREMISES Page 12 Liquor Licensing Policy Manual so similar to that of liquor primary licensed establishments that the distinction between the two types becomes blurred. For example, bandstands, stages and overhead track lighting would be considered more conducive to the operations of liquor primary establishments such as lounges or cabarets. The policies below outline the requirements for restaurant operating details and furnishings that are consistent with the primary operating purpose of food service. They also address the necessity of separating the licensed dining area from other unlicensed areas of the establishment so that patrons will not be confused about where liquor may be consumed. 19 In common with other policies governing premises, appropriate management and control of the licensed area is a fundamental concern. F F Policies 6.7.1. Operating details and furnishings consistent with food service A food primary licence may be issued for an establishment if the primary purpose of the business carried on in the establishment is the service of food during all hours of its operation. In determining whether to issue a licence, the general manager may consider whether the establishment: has kitchen equipment sufficient for the operation of the establishment as primarily in the business of food service uses a kind of lighting that is positioned, and normally considered suitable, for dining is furnished with tables, chairs, booths, and/or counters and stools, the height and width of which are suitable for dining has a menu with a varied selection of food items, including both appetizers and main courses, or their equivalent offers entertainment and games of a type and/or during hours that are consistent with an establishment primarily in the business of food service 20 advertises as primarily in the business of food service operates during the hours that would be consistent with an establishment primarily in the business of food service has financial records that demonstrate the primary focus of the business is the service of food has a ratio of receipts from food sales to liquor sales that is consistent with an establishment primarily in the business of food service, and has any other characteristics that would be relevant and would assist in the determination of whether the establishment is primarily in the business of food service. F [Liquor Control and Licensing Regulations, section 11(3); Liquor Control and Licensing Branch Policy] 6.7.2. Where decor and furnishings are more consistent with another licence category If the general manager is of the opinion that the operating details and furnishings are more consistent with a liquor primary licensed establishment, the applicant or licensee may be asked to apply for that licence. The general manager may consider construction and furnishings typically found in night clubs and other types of liquor primary establishments, such as: bandstand-style stages dance floors out of proportion with the size of the establishment D.J. booths and high-volume speakers, and strobe and multi-track overhead lighting 19 See related discussion and policy in 6.5 Adjoining Licensed and Unlicensed Areas and 11.6.2 Restrictions on Entertainment and Games in Food Primary Licensed Establishments. 20 See sections 11.6.6 and 11.6.7 for special conditions that apply to karaoke box-style restaurants. SECTION 6 – PREMISES Page 13 Liquor Licensing Policy Manual to be inconsistent with, or indicate a shift in emphasis from, an establishment primarily engaged in food service. [Liquor Control and Licensing Branch Policy] SECTION 6 – PREMISES Page 14 Liquor Licensing Policy Manual SECTION 7: Liquor Service and Sales 7.0 Introduction This chapter covers topics relating to how liquor is sold and served in establishments licensed by the Liquor Control and Licensing Branch. The policies and practices discussed here are, generally, the techniques the branch uses to discourage over-service in licensed establishments. A recurring theme throughout this chapter is that regulatory tools such as these are used by government to manage the sale of products like alcohol — products that have addictive qualities, and that may have harmful effects if either abused by purchasers or exploited by vendors. These and related issues are discussed in this chapter under the headings: Type of Liquor Sold Ordering Liquor Pricing Dispensers and Drink Sizes Replacement of Faulty Keg or Spoiled Product by Brewer’s Agent Off-Premises Sales Variations in Liquor Primary Licences 7.1 Type of Liquor Sold Policy Rationale Under section 12(3)(a) of the Liquor Control and Licensing Act, the general manager may “… limit the type of liquor to be sold” in a licensed establishment. The general manager’s actions in this regard are in keeping with the statutory duty to consider the public interest when establishing licence terms and conditions, and to ensure that liquor sales are properly managed and controlled. Additionally, tastes and drinking patterns quite simply change, and manufacturers continue to develop new products. For these reasons, limitations on the types of liquor that can be sold in most types of establishments are a matter of policy and not set out in the legislation. The exception to this is licensed manufacturer lounges and special event areas, which are limited by section 18(7) of the regulations. Wineries may sell wine manufactured and bottled in British Columbia and breweries and distilleries are limited to the products produced under their licences. This is because the manufacturer endorsements were designed to foster development of the province’s food and beverage -tourism” market and were not intended to provide for alternate drinking establishments. For off-premises consumption, licensee retail stores are permitted to sell packaged spirits, beer, wine, cider and coolers. Wine stores may sell packaged wine only. Establishments with off-premises sales endorsements are, however, restricted to packaged beer, cider, wine and coolers containing less than seven per cent alcohol. This requirement is discussed in greater detail later in this chapter under the topic “Off-Premises Sales”. For both liquor primary and food primary establishments, the general manager may, under sections 6(c) and 12(3) of the Act, impose limitations on the type of liquor sold in consideration of the public interest and pursuant to the duty to supervise the conduct and operation of licensed establishments. The general manager has no general policy to limit the types of liquor sold in either liquor primary or food primary establishments, with the exception of licensed stadiums. They are restricted to the sale of beer, wine, cider, and coolers; the sale or service of spirits is prohibited. This is largely because of public safety issues associated with liquor consumption where large numbers of people are gathered in a relatively restricted area during sporting events. SECTION 7 – LIQUOR SERVICES AND SALES Page 1 Liquor Licensing Policy Manual Any limitations for liquor primary and food primary establishments are otherwise establishment and location specific, forming part of the terms and conditions of the liquor licence for a particular establishment. Decisions about the availability of liquor require careful consideration of the implications for management and control of the establishment, and of the potential impacts on the community. As a result, such decisions are generally based upon a range of factors. For example, patterns of enforcement difficulties may be examined, such as over-service, overcrowding or service to minors. Changing tastes and drinking trends may also be a consideration, as might the numbers and types of licensed establishments in the vicinity. The nature of the establishment in question might also be a factor, in terms of clientele, operating characteristics, and the types of activities provided. For details on liquor that may be sold at catered and residential events, please see section 14.5.4. For details on liquor that may be sold in licensee retail stores, please see section 15.5.1. For details on liquor that may be sold in wine stores, please see section 16.8.1 For details on liquor that may be sold in manufacturer endorsement areas please see section 17.20 Policies 7.1.1. Types of liquor sold in liquor primary establishments All types of liquor may be sold in liquor primary licensed establishments, subject to limitation by the general manager. Where limited by the general manager, the types of liquor permitted for sale shall be endorsed on the licence. [Liquor Control and Licensing Act, sections 6(c) and 12(3)(a), Liquor Control and Licensing Branch Policy] 7.1.2. Types of liquor sold in stadiums The sale or service of liquor in a licensed stadium is restricted to beer, wine, cider, and coolers. The sale or service of spirits is prohibited unless otherwise authorized by the general manager. 1 F [Liquor Control and Licensing Act, sections 6(c) and 12(3)(a), Liquor Control and Licensing Branch Policy] 7.1.3. Types of liquor sold in food primary licensed establishments All types of liquor may be sold in food primary licensed establishments, subject to limitation by the general manager. Where limited by the general manager, the types of liquor permitted for sale shall be endorsed on the licence. [Liquor Control and Licensing Act, sections 6(c) and 12(3)(a), Liquor Control and Licensing Branch Policy] 7.2 Ordering Liquor Policy Rationale Regulating product supply is one of the key instruments used by government to ensure product quality, and also to control the quantities bought and sold as part of the duty to supervise the conduct and operation of licensed establishments under section 6(c) of the Liquor Control and Licensing Act. Section 38(3)(a) of the Act requires that licensees purchase liquor for resale in their establishments from the Liquor Distribution Branch. In addition to government liquor stores, the Liquor Distribution Branch designates other sources of supply where licensees may purchase liquor. Currently, the following outlets are designated: 1 See related policy in 7.7 Variations in Liquor Primary Licences. SECTION 7 – LIQUOR SERVICES AND SALES Page 2 Liquor Licensing Policy Manual British Columbia wineries, breweries and craft distilleries Brewers’ Distributors, and Rural agency liquor stores specifically authorized by the LDB. The Liquor Control and Licensing Regulations stipulate that certain practical measures be taken to ensure that liquor is purchased from appropriate sources and that purchases are properly accounted for. Section 35(3) requires that licensees keep a register of all liquor purchases and receipts. This register must be open to inspection by the police, liquor inspectors, or any other person designated for that purpose by the general manager. Section 35(1)(a) requires that licensees purchase liquor only from liquor stores designated by the general manager, or another person designated by the Liquor Distribution Branch. Policies 7.2.1. Inspection of liquor register and other items A liquor inspector, peace officer, or other person designated in writing by the general manager may require that the licensee make available for inspection a register of liquor purchased and received any other records relevant to the purchase, storage, and sale of liquor 2 any premises used for the storage of liquor liquor stocks and any other things associated with the operation of the licensed establishment. F [Liquor Control and Licensing Act, section 73(1), Liquor Control and Licensing Regulations, section 34, Liquor Distribution Act, section 11, Liquor Control and Licensing Branch Policy] 7.2.2. Subject of liquor register inspection A liquor inspector, peace officer, or other person designated in writing by the general manager may examine a licensee’s register of liquor purchases, receipts, and liquor stock to ensure that all liquor has been purchased: from a liquor store designated in writing by the general manager, or another person designated by the Liquor Distribution Branch in accordance with the Liquor Control and Licensing Act, the regulations and the terms and conditions of the licence, and by a person identified as a licensee. [Liquor Control and Licensing Act, section 38(3)(a), Liquor Control and Licensing Regulations, sections 34 and 35(1), Liquor Distribution Act, section 11] 7.3 Pricing Policy Rationale Control of liquor prices is directed at the conditions that might lead to over-service, over-consumption, and loss of control within a licensed establishment. In general, the price of liquor must not be so low that people are inclined to drink it “like water”. Under section 41(3) of the regulations, a price list must be made available to the customers of all licensed establishments. 2 Section 34 of the Liquor Control and Licensing Regulations lists, in addition to liquor purchase records, a range of prescribed documents that the licensee may be required to produce for inspection. SECTION 7 – LIQUOR SERVICES AND SALES Page 3 Liquor Licensing Policy Manual The minimum specifications for pricing are set out in section 41 of the Liquor Control and Licensing Regulations. The first of these, in section 41(2), includes a requirement that liquor not be provided at unlimited or unspecified quantities for a single price. Also under section 41(2)(c) is a requirement that the price of liquor not be altered in the course of the business day. The branch uses this regulation to specifically address 2-for-1, “happy hours”, or temporary price reductions in the course of the business day. These practices are thought to encourage over-service and over-consumption. For instance, offering a “loss leader” or lower priced brand of draught beer with the knowledge that it is nearly out of stock, and likely to be substituted by the customer with a higherpriced brand, is viewed very seriously Liquor retail stores are exempt from this requirement as altering the price of packaged liquor is unlikely to have the same social impact Under the general manager’s authority to set the format and pricing formula of price lists, “special price” exceptions have been made for specific occasions. For example, a licensee may offer the products of sponsoring suppliers or their agents during approved theme night promotions or during consumer taste trials 3 at a special price, if approved by the general manager. Additionally, glasses or bottles of champagne or wine may be offered to customers as part of an all-inclusive package price, such as is common for New Year’s Eve promotions. Policies have been crafted to govern these occasions so that over-service and over-consumption are not encouraged by the reduced prices. F F For pricing requirements specific to caterers, see section 14.5.3. For pricing requirements in licensee retail stores, please see section 15.5.5. For pricing requirements in wine stores, please see section 16.8.3. Policies 7.3.1. General conditions applying to liquor prices and price lists Subject to policies 7.3.4 and 7.3.5 below, and unless otherwise specified by the general manager, the following conditions apply to liquor prices and price lists in licensed establishments: liquor may not be provided in unlimited or unspecified quantities for a single price liquor prices, except for LRS and other retail stores, must be set at the beginning of the day and may not be altered during the business day, as in the practice of “happy hour” sales a sales strategy may not be employed if it is likely to promote or encourage intoxication, as in the practice of: “two-for-one” sales circulating with trays of pre-mixed drinks that are not previously ordered by the customer pouring liquor directly into the mouth of a person, and providing free drinks in a volume that could result in over-consumption 4 , and F F price lists must be available to customers showing the quantities and corresponding prices for all types of liquor sold in the licensed establishment. [Liquor Control and Licensing Regulations, section 41] 7.3.2. Pricing and availability of product A reduced or special price may not be offered on a brand of liquor for which stocks are known to be insufficient when it is likely the customer will accept a higher priced brand as a substitute. Except when a brand is genuinely out-of-stock or unavailable from the supplier, all liquor products identified on the liquor menu should be available to patrons at all times. 3 4 Please see Sections 12.3 and 12.4 in the Licensee Relationships with Manufacturers chapter for more information. A licensee may occasionally treat customers to a free drink, but multiple drinks that could lead to over-consumption would not be permitted. SECTION 7 – LIQUOR SERVICES AND SALES Page 4 Liquor Licensing Policy Manual [Liquor Control and Licensing Act, section 45(2), Liquor Control and Licensing Branch Policy] 7.3.3. Liquor prices and Liquor Distribution Branch purchase price Liquor prices must be at least as much as the original Liquor Distribution Branch purchase price. The licensee, in accordance with the conditions established in policy 7.3.1, may sell at any price above the original Liquor Distribution Branch purchase price. [Liquor Control and Licensing Branch Policy] 7.3.4. Theme night prices Licensees of liquor primary licensed establishments may offer special prices on liquor products introduced during the hours of an approved theme night run by the licensed agent of a liquor supplier, under the following conditions: the agent may not subsidize the price of the products in any way the price of the products must not be below Liquor Distribution Branch price, and must not encourage over-consumption, and liquor prices and theme night characteristics are subject to the general manager’s approval. 5 F [Liquor Control and Licensing Act, section 54, Liquor Control and Licensing Regulations, section 41(3), Liquor Control and Licensing Branch Policy] 7.3.5. All-inclusive packages including liquor in the price The licensees of liquor primary and food primary licensed establishments, manufacturer lounge, picnic and special event areas may offer an all-inclusive package that includes liquor in the price. The amount of liquor to be provided must be specified and not unlimited. [Liquor Control and Licensing Regulations, section 41(3), Liquor Control and Licensing Branch Policy] 7.3.6. Reference to credit sales on price list A licensee may sell liquor on credit to a patron with payment made at a later date, as agreed between the licensee and the patron. A licensee may include a reference on the liquor price list to the effect that payment may be accepted by credit card, or by such other credit arrangement as may be offered by the licensee. [Liquor Control and Licensing Branch Policy] 7.4 Dispensers and Drink Sizes Policy Rationale Consumers have to know how much alcohol is in their drinks if they are to judge their alcohol intake. Providing a “yardstick” by which patrons can measure and moderate their intake is an important tool for controlling over-consumption in licensed establishments. At the same time, features such as ensuring that liquor is dispensed from containers that are recognizable as containing a standard amount of alcohol, and ensuring that the amount of liquor contained in the typical mixed drink is consistent, are important in preventing over-service and providing a measure of quality control. For these reasons, the Liquor Control and Licensing Regulations contain sections addressing both the liquor content of drinks and the containers from which liquor is dispensed. Section 40(1) provides that, as a general rule and unless otherwise authorized by the general manager, all liquor served in licensed establishments shall be dispensed from the original container in which it was purchased. Liquor may also 5 See related policies under Theme Night Promotions, section 12.4 in the Licensee Relationships with Manufacturers chapter. SECTION 7 – LIQUOR SERVICES AND SALES Page 5 Liquor Licensing Policy Manual be served from carafes and pitchers, or other containers approved by the general manager, as long as patrons are made aware of the serving size. The general manager has also approved the use of automatic dispensing machines. Branch policy directs that a “drink” containing distilled liquor may not contain more than three fluid ounces of distilled liquor, or the equivalent in metric measures. Under the general manager’s authority to permit liquor to be dispensed from other-than-the-original serving containers, branch policy also permits it to be served in larger containers to two or more patrons, provided the maximum quantity of not more than three ounces per person is maintained. Out of concern for over-service and over-consumption, however, the sale or service of whole bottles of distilled liquor is not permitted. Additionally, there are some general policies for serving wine and draught beer. 6 The single serving size maximum for wine is 10 oz (285 ml), or in smaller servings of multiple brands, provided the total served at one time is no more than 10 oz (285 ml); wine may also be served by the standard 750 ml bottle if it is to be consumed by at least 2 people and with food. Wine may be served by the bottle, in non-refillable containers of .75 litre to 1.5 litres, or in approved refillable containers of no more than 1.5 litres. The single serving size maximum for draught beer is 24 oz (680 ml) or smaller servings of multiple brands, provided the total served at one time is no more than 24 oz (680 ml). (A Canadian pint is 568 ml.) Pitchers or other multiple serving containers shared by two or more patrons may contain no more than 1.5 litres of draught beer. Once again, these provisions are meant to hold both consumption and service at appropriate levels within the licensed establishment. F F Policies 7.4.1. Serving size and preparation of a “drink” containing distilled liquor Each drink containing distilled liquor (spirits) shall contain not more than three fluid ounces of distilled liquor, or the metric equivalent (85ml). Liquor may be poured, and mixers added in a suitable container in anticipation of customers ordering drinks, but must be poured into a customers’ glass in full view of customers. A person may not be served more than one drink at one time 7 . Drinks may be served in larger containers to two or more patrons, but the maximum of three fluid ounces (85 ml) per person must be maintained. Whole bottles of distilled liquor may not be sold or served, regardless of the number of persons seated at a table. F F [Liquor Control and Licensing Regulations, section 40(3) and 41(3); Liquor Control and Licensing Branch Policy] 7.4.2. Container and serving size for wine Wine may be served in: single servings of 10 oz (285 ml) smaller servings of multiple brands, provided the total served at one time is no more than 10 oz (285 ml) the standard 750 ml bottle if it is to be consumed by at least 2 people and with food non-refillable containers of .75 litre to 1.5 litres, or in refillable containers of no more than 1.5 litres. [Liquor Control and Licensing Regulations, section 40(1); Liquor Control and Licensing Branch Policy] 6 Note: Different serving sizes apply to liquor samples provided during consumer taste trials and theme night promotions or drinks bought by a manufacturer in a licensed establishment. See chapter 12 (sections 12.3, 12.4 and 12.5). 7 For example, a licensee may not serve patrons drinks “by the tray-load”. SECTION 7 – LIQUOR SERVICES AND SALES Page 6 Liquor Licensing Policy Manual 7.4.3. Container and serving size for draught beer Draught beer may be served in: single servings of no more than 24 oz (680 ml) - a Canadian pint is 568 ml smaller servings of multiple brands, provided the total served at one time is no more than 24 oz (680 ml), and pitchers or other multiple serving containers shared by two or more patrons and containing no more than 1.5 litres of draught beer. [Liquor Control and Licensing Regulations, section 40(1); Liquor Control and Licensing Branch Policy] Replacement of Faulty Keg or Spoiled Product by Brewer’s Agent 7.5 Policy Rationale Kegs of draft beer “on tap” are a common and popular feature in many licensed establishments. Today’s kegs are generally sturdy and fitted with reliable tapping mechanisms. If kegs are damaged or contain spoiled product, proprietors may ask the brewer to replace it. Accounting for keg replacements is considered part of the liquor register the licensee is required to maintain under sections 35(3) of the Liquor Control and Licensing Regulations. Failure to account properly for this exchange of “faulty” product may be interpreted as the licensee unlawfully purchasing and selling liquor under sections 38(3) and 39 of the Liquor Control and Licensing Act. It may also be interpreted as the manufacturer or their agent giving liquor to a person in a manner other than is provided in the Act, contrary to section 52(3). Finally, it could be considered as evidence of an inducement activity intended to “induce, further or promote the sale of a particular kind, class or brand of liquor” contrary to section 45(1) of the Act. Policies 7.5.1. System of accounting for faulty keg replacement is part of liquor register Faulty or damaged kegs, and the system or records used to account for the replacement of these kegs on credit by a brewer’s agent, are considered to be part of a licensee’s liquor register. A liquor register may be examined by a liquor inspector, peace officer or other person designated in writing by the general manager. 8 F [Liquor Control and Licensing Regulations, sections 35(3) and 40(2); Liquor Control and Licensing Branch Policy] 7.5.2. Failure to properly account for liquor received or credited through the replacement of a faulty keg Failure to account for pickup and replacement of a keg by a brewer’s agent, may be considered evidence of: 8 unlawful sale of liquor unlawful purchase of liquor inducement activity intended to induce, further or promote the sale of a particular kind, class or brand of liquor, or giving liquor to a person in a manner other than is provided in the Liquor Control and Licensing Act. Please see related policies under Ordering Liquor. SECTION 7 – LIQUOR SERVICES AND SALES Page 7 Liquor Licensing Policy Manual [Liquor Control and Licensing Act, sections 38(3), 45(1) and 52(3); Liquor Control and Licensing Branch Policy] 7.6 Off-Premises Sales Policy Rationale The policies governing off-premises sales of liquor reflect a balance between the branch’s two operating principles – public safety and community standards. These sales provide a convenient service to the public in any community, but particularly in small or rural communities with limited access to retail liquor outlets. Unfortunately, off-sales have also, in some instances, been accompanied by overconsumption and related social problems. By the time of the Jansen Liquor Policy Review in 1987, some local communities were experiencing problems. A number of local police detachments and municipalities reported that it was common for patrons to purchase off-sales product at closing time to “carry on the party”, leaving communities to contend with late-night street drinking and rowdiness. The situation led the government to restrict offsales hours to an 11:00 p.m. closing. Local police reported a substantial decrease in enforcement problems after the restriction was imposed. The 11:00 p.m. closing time applies to all liquor retailers, including government liquor stores. The regulations and policies in place today balance public convenience with other public interest considerations. Section 14 of the Liquor Control and Licensing Act provides the general authority for offpremises sales endorsements, and section 47 of the regulations restricts these endorsements to liquor primary and liquor primary club licensed establishments only. Additionally, this section of the regulations sets all of the conditions outlined above, including the 11:00 p.m. cut-off for sales. The overconsumption problems that resulted in the 11:00 p.m. restriction have also led the branch to interpret this regulation to mean that the product must be removed from the premises immediately after it is purchased. These and other public interest factors related to off-premises sales may be considered at the time of a new licence application, and these sales are one of the issues that a local government or First Nation may consider and comment upon in the form of a local government resolution. Applications for off-sales endorsements on existing licences do not require local government resolutions. Policies 7.6.1. Off-premises sales endorsement The general manager may endorse a liquor primary licence for off-premises sales provided: the licence results from a renewal, amendment or transfer of a licence already endorsed for off premises sales a written application for the endorsement was received by the general manager before June 5, 2000, or the establishment in respect of which the endorsement is sought is at least 30 kilometres from each of the following: o a liquor store, including a rural agency store o a licensee retail store o an establishment with a licence endorsed for off premises sales. the establishment is operated in conjunction with, at the same site and owned by the same licensee as a brewery (the two establishments operate together as a brew pub) and the endorsement is restricted to the sale of the brew pub’s products that are manufactured on the premises. [Liquor Control and Licensing Regulations, section 47(1)] SECTION 7 – LIQUOR SERVICES AND SALES Page 8 Liquor Licensing Policy Manual 7.6.2. Consideration of local issues At the time of a new licence application, the general manager may take into account a local government resolution in support of or against a request for off premises sales. In addition, with a new licence application, the general manager may require the applicant to demonstrate that the public need and convenience would be served by endorsing the licence for off premises sales. Local government resolutions are not considered with change applications for the addition of off premises sales endorsements for existing licensees. [Liquor Control and Licensing Act, section 14; Liquor Control and Licensing Branch Policy] 7.6.3. Hours of sale Off-premises sales are only permitted before 11:00 p.m. during the hours of sale permitted on the licensee’s licence. All products purchased for off-premises consumption must be removed from the premises immediately after the sale is completed. Product may not be stored in the establishment for a customer, either within or outside the licensed area. [Liquor Control and Licensing Regulations, section 47(2)(a) and (b); Liquor Control and Licensing Branch Policy] 7.6.4. Types of liquor sold Off-premises sales may include the following types of liquor: wine domestic and imported beer draught beer cider, and coolers. [Liquor Control and Licensing Regulations, section 47(2)(c)] 7.6.5. Place of off premises sales within the licensed establishment The following conditions apply to the sale of packaged liquor within licensed establishments with off premises sales endorsements: Revised February 2013 sales must be made from the primary service bar area, unless the general manager approved a different area (sales counter) for off premises sales prior to June 5, 2000 self service sales are prohibited packaged liquor must be stored behind the service bar (or sales counter), and packaged liquor is not permitted in the public red-lined area until the sale is completed and must be removed from the premises immediately thereafter. a licensee with a catering endorsement must not offer off premises sales at an event catered by the licensee. [Liquor Control and Licensing Regulations, section 47(2)(d), 47(3), and 47(5)] 7.6.6. Brew pub container sizes and refills A brewery which is part of a brew pub establishment which has an endorsement for off-premises sales of its products which are manufactured on site may package (i.e. fill containers with) the brewery’s products for off premises sales in the brewery or in the liquor primary establishment. In either case, all off premises products are treated as packaged liquor products. The brew pub must decide what sizes to offer its product in and obtain from the Liquor Distribution Branch registration and product codes for each size of container for each type of product it intends to offer for off premises sales. SECTION 7 – LIQUOR SERVICES AND SALES Page 9 Liquor Licensing Policy Manual The brew pub may allow customers to bring back empty containers which were previously purchased to have them refilled at the bar. The sale would be reported to LDB as a sale from the liquor primary establishment using the applicable product code for that size of container. (These provisions apply only to liquor primary establishments which are part of a brew pub. Liquor primary establishments with off premises sales endorsements not attached to a brew-pub may sell their products off premises but only in the original containers which were purchased from the Liquor Distribution Branch. They must not, for example, fill containers from a large keg for off premises consumption.) 7.7 Special Conditions Policy Rationale Individual licensed establishments vary greatly from one another. Nevertheless, for the most part, liquor licensing regulations and policies apply generally, across a broad cross section of establishment types. Some “special conditions”, however, do apply to a number of establishments because of their unique character. These include: clubs, golf courses with kiosks, take-out windows and beverage carts, motor vessels, room service and mini-bars in establishments offering overnight accommodation, concert halls, curling clubs, golf course facilities, recreation centres, stadiums/arenas, theatres and downhill ski resort areas. The terms and conditions which apply in these special conditions reflect the branch’s mandate to prevent minors from accessing liquor, hold licensees accountable for the care and control of the establishment and promote public safety by reducing the incidence of public intoxication. Exemptions from policy are strictly limited because both the branch and local government took into account the nature of the activities and events proposed for the licensed venue when reviewing the application and approving the licence. Had the original application been based on the proposed activities/events for which the exemption is sought the branch and/or local government may not have approved it, or approved it with different terms and conditions. Clubs The statutory provisions that apply to clubs can be found in sections 1, 24, 25 and 27 of the Liquor Control and Licensing Act, and section 52 of the regulations. These provisions largely relate to the sale of liquor to club members and guests, the management of guests, and the management of liquor for personal consumption by club members. An understanding of the way a club is defined in the Act is key to an understanding of the rationale for these provisions. First of all, the definition of “club” in section 1 of the Act sets the standard eligibility criteria for club licences, in terms of a minimum number of members, minimum membership fee and primary operating purpose. Clubs are understood as not operating primarily for profit, and liquor sales are restricted by section 25 of the Act to actual club members and their guests. As a result of these provisions, a club is not generally considered to be a public place in the sense that other establishments are public places. A club, by definition, must have members, and all clubs restrict access to members and guests accompanied by members only. Licensees must control entry into their licensed areas by maintaining a daily record of the names and addresses of all guests and their member hosts. As a result of these legislated distinctions between clubs and other licensed establishments, and the safeguards that are established by policy to control liquor service, clubs are eligible under section 27 of the Act, at the discretion of the general manager, to hold liquor for the personal consumption of club members. The general manager may also approve the sale of liquor to members and their guests in certain locations outside the licensed area. SECTION 7 – LIQUOR SERVICES AND SALES Page 10 Liquor Licensing Policy Manual Sale and Service on the Playing Area of a Golf Course A liquor primary licence can be issued for the playing area of a golf course which permits the sale and service of liquor from a kiosk, take-out window or beverage cart. The playing area can also be licensed with service from the interior liquor primary service bar. However, there is no requirement that a licensee also operate an interior liquor primary lounge to obtain a kiosk, cart or service window. Special conditions apply to liquor sales and service on the playing area of a golf course , in this case established under the general manager‘s broader authority to set licence terms and conditions under sections 12(2) and 12(3) of the Act. Since the licensee‘s ability to supervise patron behaviour over such a large area is difficult, the rules for liquor service in the playing area of a golf course are fairly restrictive. The conditions set out in the policy below relate to both the responsibilities of the licensee and servers from kiosks, take-out windows, beverage carts, or the interior liquor primary service bar, as well as to the areas of the golf course where liquor may be consumed or carried. Special outdoor signage requirements also apply when liquor service is available by these means. Motor Vessels Special conditions apply to liquor sales and service on motor vessels, again established under the general manager’s broader authority to set licence terms and conditions under section 12 of the Act. The conditions for motor vessels were established to accommodate the circumstances of a particular category of motor vessel, including cruise ships or larger motor vessels that ply scheduled routes or travel from one destination to another. The intent is also to recognize that some charter vessels provide a service that, while primarily marine oriented, is consistent with the services provided by other sectors of the hospitality industry (for example, luncheon and dinner cruises), and may therefore be appropriate for licensing. To ensure that motor vessel licensing is in the public interest, and recognizing the difficulties of controlling patrons when the licensee has a limited ability to eject unruly or intoxicated persons, the policy gives special consideration to providing for the safety of passengers who have consumed alcohol. These requirements are incorporated into federal safety standards for the type of boat transportation being offered. As a condition of the liquor licence, the licensee must demonstrate that these standards have been met. All liquor must be purchased through a designated liquor store or other person approved by the Liquor Distribution Branch. This legislated requirement for all licence classes is explicitly stated in the motor vessel policy to clarify that liquor cannot be purchased at American ports for service during the cruise or tour. Finally, the special conditions that apply to motor vessels permit liquor service at dockside for a maximum of up to one hour prior to departure and one hour after the end of the trip. If dockside service beyond these times is contemplated, the licensee must first obtain a resolution from the appropriate local government or First Nation. The general manager, in deciding whether to authorize the extended liquor service hours, then takes this resolution into consideration. This limitation is in effect because of the potentially negative effects liquor service may have on communities. The policies set out below reflect the view that the purpose of licensing is to permit liquor service while the vessel is underway, and that, with the exception of the one hour service prior to departure and after the vessel’s return, liquor sales and services in the community can be provided by means other than dockside liquor service. Room Service Room service policy is entirely crafted around section 48(1) of the Liquor Control and Licensing Regulations. This section permits a licensed establishments offering overnight accommodation to provide room service sales to guests, on the condition that the type of liquor sold is permitted by the terms of the licence and that sales take place only during the licensed hours of operation. These requirements, like those for off-premises sales, strike a balance between public convenience and the public safety concern that the community must be safeguarded from the effects of inappropriate SECTION 7 – LIQUOR SERVICES AND SALES Page 11 Liquor Licensing Policy Manual alcohol sales and irresponsible consumption. The intent of the room service regulations and policy is to allow people to enjoy a drink in their temporary residences, just as they would in their homes. Nevertheless, all terms and conditions of the hotel liquor licence apply, and the onus remains on the licensee to ensure that minors are not served with liquor and that liquor is served in a responsible manner. Mini-bars The rationale for mini-bars is closely related to that for room service. Both mini-bars and room service extend the licensed area into the hotel rooms of registered guests who are of legal age. For mini-bars, this is done under authority of section 48(2) of the regulations, and under the general manager’s authority under section 12(3)(b) of the Act to “… designate the areas of an establishment, both indoor and outdoor, where liquor may be sold and served”. At a hotel, for example, the hotel guest is, in effect, “served” with a stocked mini-bar when the hotel provides the guest with a key to the mini-bar. The key is given to the guest under the proviso that access to the mini-bar is extended only to registered guests over the age of 19 years. When checking out, the guest “returns” the unused portion of the mini-bar by returning the key, and pays for any items that were consumed. As with room service, the intent is to enable a hotel guest to enjoy a drink in his or her “home away from home”. Also, as for room service, mini-bars are permitted only in licensed establishments offering overnight accommodation. Mini-bars provide consumption controls by offering single serving minibottles, as well as snacks, and by selling the products at prices that are generally somewhat higher than in the establishment’s lounge or dining room Concert halls, live event theatres, motion picture theatres, convention and conference centres, stadiums/arenas, recreation centres Convention/conference centres, stadiums/arenas, concert halls, live event theatres and movie theatres which have event driven liquor primary licences do not have to apply to be temporarily delicensed/suspended to hold non-liquor events. The dressing room and “green room” (a room for performers when not required to be on stage) areas of concert halls/live-event theatres, convention/conference centres, and stadiums/arenas (as well as clubs and recreational, community or municipal or provincial cultural centres where s. 27 applies, see 7.7.13, below) with liquor primary licences may be licensed under the liquor primary licence with special terms and conditions or as green lined areas of a liquor primary establishment (see 7.7.13, below). By licensing these areas where liquor is commonly consumed by the players or performers (even when the areas are not licensed), the licensee assumes responsibility for the care and control of liquor consumption in these areas and the branch retains its supervisory and inspection authority at all times. Since the dressing rooms, particularly those of stadiums and arenas, will be used by teams of minors and mixed minors and adults, often alternating day by day or week by week, the special LP terms and conditions or the green line designation allows the licensee to de-license these areas to accommodate the presence of minors without having to apply to the branch every time. Since the liquor primary licences for these facilities are event driven, licensed dressing rooms and “green rooms” are also event driven. Licences issued on or before August 1, 2012 for establishments which do not fit the definitions set out in this section will be renewed annually upon application. Complete applications received prior to July 31, 2012, will be assessed against the policy which was in effect at the time. Concert halls/live event theatres A concert hall/live event theatre is a large room, hall, building or premises, the primary purpose of which is to be a place where the public gathers to view live performances featuring entertainment such as music, singing, dancing, acting, comedy or variety shows or public speaking. As an event driven LP licence, liquor may only be served when some type of performance is taking place. SECTION 7 – LIQUOR SERVICES AND SALES Page 12 Liquor Licensing Policy Manual Generally concert halls/live event theatres have fixed, tiered seating. Dance floors or areas are not permitted in a concert hall/live event theatre regardless of size. Subject to limitations imposed by the general manager: all types of liquor may be sold, liquor service is allowed in the theatre lobby with minors present and in the seating area if minors are not present, the liquor service area from which patrons obtain their liquor must not be in the auditorium, taking patron orders for liquor is permitted in the auditorium but hawking (offering of prepoured drinks from a tray) in the auditorium is not allowed, minors are not permitted to be present when there is adult entertainment, and liquor service is always event or activity specific (see 7.7.7 – event driven licences) and is limited to a short time before and after the event and at intermissions. Motion picture theatres (movie theatres) A movie theatre is a building or premises primarily designed for the presentation of movies and broadcast performances to the public. A motion picture is any moving visual image that may be generated for viewing from any medium, including film, video tape, video disk or an electronic or digital storage device, or any source, including electronic, wire, fibre optic cable, telecommunication, digital or satellite sources. It does not include a video game. A motion picture theatre licence is required for an establishment that shows even one movie a year. Generally movie theatres have fixed, tiered seating. Dance floors or areas are not permitted in a movie theatre regardless of size. Motion picture theatres (except for drive-in theatres) may apply for a liquor primary licence. Subject to limitations imposed by the general manager, all types of liquor may be sold, liquor service is allowed in the theatre lobby with minors present and in the seating area if minors are not present, the liquor service area must not be in the auditorium, hawking in the auditorium is not allowed, minors are not permitted to be present when there is adult entertainment, and liquor service is always event or activity specific (see 7.7.7 – event driven licences) and is limited to a short time before and after the event and at intermissions. Convention/conference centres A convention/conference centre is a building with at least one large exhibition area and one or more smaller rooms or halls of sufficient size and having adequate support facilities such as washrooms, assembly areas and catering services which, as its primary purpose, hosts provincial, national and international meetings, trade shows, conferences, congresses and conventions. Universities may have convention/conference centres composed of a number of separate facilities as well as multiple rooms in single facilities. Convention/conference centres are distinguished from concert halls/theatres and stadiums/arenas by the breadth of events which they are designed to host. Subject to limitations imposed by the general manager, liquor service is always event or activity specific (see 7.7.7 – event driven licences), all types of liquor may be sold and minors are allowed in the licensed area except when there is adult entertainment. “Multi-purpose” establishments, which are generally smaller venues with limited capacity to provide the full range of services required by large conventions or trade shows, are not eligible for a licence. These establishments hold themselves open for rental by any organization for any type of event from a meeting through to an all ages community dance. Because they are available for rental by any type of organization for any type of event it is not possible to identify their primary purpose and it is SECTION 7 – LIQUOR SERVICES AND SALES Page 13 Liquor Licensing Policy Manual impossible for the branch or local government to assess their suitability as a venue licensed to serve liquor. Stadiums/arenas A stadium/arena is a permanent structure consisting of outside walls, a central playing area with tiered seating for viewing and additional support facilities such as dressing rooms, concession areas and washrooms – it is more than just a playing field with bleachers -- that is used primarily as a venue for live professional and amateur sporting events and live concerts. Recreation Centres: A recreation centre offers a variety of sporting, cultural and social activities to members and the general public. Recreational centres include golf courses, tennis, squash or racquet ball courts, skiing facilities, curling, hockey and other skating options, dance options, exercise facilities, bowling facilities and swimming facilities. Recreation centres provide facilities for members and the public to actively participate in physical activities and cultural pursuits. Stadiums The sale or service of spirits is generally prohibited in stadiums under the general manager’s authority in section 12(3)(b) of the Act. The remainder of the special conditions that apply to stadiums are largely addressed under section 49 of the regulations. Revised October 2013 To ensure the safety of spectators in stadiums, this section specifies that liquor may be served only in plastic, paper or other disposable containers, including disposable/recyclable plastic bottles or aluminum cans that are opened prior to handing them over to patrons — unless the general manager expressly authorizes some other type of container for use in all or parts of the stadium. Also, so that liquor sales or service is not inappropriately associated with an activity or event taking place at a stadium — for example, a sporting event in which the participants are children or youths, or entertainment which appeals largely to children — the regulations stipulate that the organizer or promoter sponsoring the event must give their written consent for the stadium to sell liquor during their event. Stadium licensees may apply to the general manager for permission to have vendors in the stands (hawkers). The same rules apply for vendors selling and serving alcohol in the stadium stands as for other staff serving liquor in the stadium. In addition, hawkers must not be minors and must not be paid on a commission basis. Stadium licensees may apply to the general manager for permission to offer self-service of liquor in private suites/boxes and are permitted to sell and serve spirits and allow minors in private suites/boxes. Finally, out of consideration of non-drinking spectators, specific areas of the stadium’s tiered seating must be designated as areas where the possession and consumption of liquor is not allowed. These “dry” areas must consist of a reasonable choice of seats within the range of ticket prices offered at the stadium, and they must be consistent in numbers to the level of demand for seats of this kind in the stadium. Stadiums/arenas, Concert Halls, Convention Centres and Live Event and Movie theatres — Event driven licences While most establishments may serve liquor at any time during licensed hours, some types of establishments may only serve liquor in conjunction with an event – the licence is described as “event driven.” The establishment is always licensed but the hours of service are limited to a short time surrounding the event – they are “event driven.” Liquor cannot be sold or served at other times unless the establishment is temporarily de-licensed and another licence comes into effect – such as an SOL. The term “event driven” refers to particular events or presentations which may be delivered through live performers (“live events”) or by means of films or broadcasts. Liquor service in concert halls and live event and movie theatres is always event driven. Conference centres, stadiums/arenas, cultural centres and SECTION 7 – LIQUOR SERVICES AND SALES Page 14 Liquor Licensing Policy Manual similar establishments may also be event-driven. Special event areas at a licensed winery are also event driven only (see Licensing Policy Manual section 8.1.8). An event is a “live event” only if the primary presentation occurs through individuals who are physically presenting the event. Common types of live events are presentations by an individual performer, a band, a theatre company, a dance troop, or a comedy or variety show. The presenters or performers may use mechanical or visual aids in support of their activities or presentations but the primary focus of the event is on the individuals who are there in person and the live actions they perform. Live events which are more typically presented at a stadium include sporting events, various types of live band, or public rallies led by a person on stage. Typical events for concert halls include plays and other dramatic presentations, comedy acts, symphonies and popular music and variety shows. In most cases, events which are more typically presented in conference centres, such as expositions with themes such home and garden, boats, or recreational vehicles do not qualify as live events since the primary purpose of the event is to display objects which people look at or try out. However, conventions such as annual conferences of professional organizations or conferences related to particular topics such as climate change, governance, or security may be live events if the primary focus is on presentations by live speakers. The licensed hours are typically specified as, for example, from noon to 2:00 a.m. with the additional term and condition that “Liquor service is event driven only,” signifying that within the licensed hours liquor service may only occur when associated with an event. The wording of the term and condition which specifies that the liquor service hours are event driven typically would be something like “Liquor service is event driven only. Liquor service hours of sale limited to one hour prior to, during and one hour after an event.” Stadiums – Private suites/boxes Liquor primary licensees in stadiums may apply to the general manager for permission to allow selfservice of liquor in private suites/boxes in stadiums. Licensees are responsible for regularly monitoring private suites/boxes and ensuring that they retain copies of any keys or access codes to the private suites/boxes and all locked cabinets in the suites/boxes. The sale and service of spirits is allowed in privates suites/boxes in stadiums. Also, minors are permitted in private suites/boxes in stadiums. Licensed area of a curling club, golf course facility, recreation centre, and stadium – Exemption Endorsement to Permit Minors Minors are permitted into liquor primary and liquor primary club establishments located in curling clubs, golf course facilities, recreation centres, and stadiums with special terms and conditions, provided they have approval from the general manager. For the purposes of this exemption, eligible recreational facilities must have a primary focus of one or more recreational or sporting activities (e.g. tennis clubs, rowing clubs, municipal recreation centres). The licensed lounge area that is eligible for this term and condition does not include multi-purpose rooms or banquet facilities. (The presence of minors in private suites/boxes in stadiums is dealt with in s. 7.7.9.) Billiard halls do not qualify. Section 9 of the regulations permits minors in a liquor primary establishment on an exception basis if they are entertainers or if, as is the case with licensed establishments located in curling clubs, golf course facilities, recreation centres, and stadiums, the general manager determines the exception to be in the public interest. Minors are often involved in sports and recreational activities, and in most curling clubs, golf course facilities, recreation centres, and stadiums the lounge area provides the only space for larger groups to get together. It is desirable for minors to be included in pre or post game analysis, most of which, by necessity, takes place in the lounge area of a curling club, golf course, recreation centre, or stadium. SECTION 7 – LIQUOR SERVICES AND SALES Page 15 Liquor Licensing Policy Manual Furthermore, permitting minors into the licensed areas where the focus is on sports and recreational activities is considered to be in the public interest as it will facilitate tourism and expand dining opportunities for families and minors participating in sports and recreational activities. The terms and conditions under which curling clubs, golf course facilities, recreation centres, and stadiums may permit minors to enter their liquor primary lounge licensed area include the following: Minors are permitted into the licensed area only when the facility is open and actively functioning for recreation purposes on a day-to-day basis and is being used for sports, sports-related, or recreational activities only (for example, in the case of a seasonal recreation facility, minors would not be permitted in the separate liquor-primary or liquor-primary club licensed area during the off-season; Minors are not required to be accompanied by a parent or guardian; Minors must leave the licensed lounge no later than 10:00 p.m: Signage must be placed in a prominent location within the establishment that reads “Minors are permitted until 10:00 p.m.” Adult entertainment, if offered, must not commence until after 10:00 p.m. (see 11.5.1); Minors are not permitted in the LP or LP club licensed area when the facility is being used for an activity which is clearly adult or non-recreational in nature, such as pub nights, holiday parties, and concerts; and Minors are not permitted if any gaming (gambling) activity takes place, with the exception of ticket raffles licensed under the Gaming Control Act or the sale of B.C. lottery products. Recreation centres – minors attending special banquet activities or award ceremonies Minors may be in the licensed area of a recreation centre in order to attend special banquet activities or other types of award ceremonies, provided: only minors who were competitors in the associated event may attend; minors must be accompanied by a parent or guardian; minors will only be allowed to attend during the full sit-down meal and award ceremonies; and minors must leave at the end of the meal and related ceremony. Bowling Centres Concourse and/or Bowlers’ Seating Area – Exemption Endorsement to Permit Minors The bowlers’ area (the concourse and/or bowlers’ seating area immediately behind the bowling lanes) may be included for consideration in an application for a liquor primary licence. If the application is approved, minors unaccompanied by a parent or guardian may be present in specific portions of the bowling centre’s licensed area, but they are generally prohibited in a separate licensed lounge area. Bowling centres with an existing liquor primary licence for a dedicated lounge may apply for a structural change to include the concourse and/or bowlers’ seating area. The compliance history of the licensed establishment will be one of the factors considered in evaluating whether to permit minors in these areas. If the licensee wishes to apply for the term and condition to permit minors, a separate application for a permanent change to a liquor licence will be required (form LCLB005b). Local government input is not required. The following terms and conditions apply: Minors are generally prohibited in the stand alone lounge; A reasonable section of the bowling centre must be set aside where consumption of liquor is not permitted out of consideration for non-drinking patrons; and Liquor service is not permitted in the concourse or playing area during youth tournaments. SECTION 7 – LIQUOR SERVICES AND SALES Page 16 Liquor Licensing Policy Manual Minors are not permitted if any gaming (gambling) activity takes place, with the exception of ticket raffles licensed under the Gaming Control Act or the sale of B.C. lottery products. Downhill Ski Resort Areas – Exemption Endorsement to Permit Minors The last set of special conditions for licensed establishments specify the terms under which liquor primary establishments located at downhill ski resort areas may permit minors to enter the premises. These are established under section 12 of the Act which provides the general manager broad authority to set licence terms and conditions. Section 9 of the regulations permits minors in a liquor primary establishment on an exception basis if they are entertainers or if, as is the case with downhill ski resort area establishments, the general manager determines the exception to be in the public interest. Many downhill ski resort areas in BC are world-renowned tourist destinations. This licence endorsement responds to the unique characteristics of establishments in these areas, specifically, that that they exist to serve the skiing community. Unlike urban communities, some of these areas may provide only limited food and beverage services for visitors travelling with their children. The terms and conditions support the policy intent to provide convenient après-ski food and beverage options for visiting families while preserving regulations that are effective in protecting public safety. In addition to requiring that a parent or adult guardian accompany minors, the policy requires that signage be placed in a prominent location within the establishment that states, “Minors are permitted until 8:00p.m.” Adult entertainment and gaming (gambling), if offered, cannot begin until after 8:00 p.m. (see 11.5.1), with the exception of ticket raffles licensed under the Gaming Control Act or the sale of B.C. lottery products. Policies 7.7.1. Conditions for liquor sales and service in clubs The following general terms and conditions apply to a liquor primary club licence: liquor may be sold or served only to club members and their guests entry into the licensed area of the club must be controlled by maintaining a register of the names of all guests, the name of the member accompanying each guest, and the date the guest is in attendance only persons who are club employees, members, or registered guests are permitted in the licensed area of the club. In addition, the general manager may attach the following specific conditions to a liquor primary club licence: members are required to secure all liquor kept by members for personal consumption while on the premises in personal lockers when not being consumed bar and food service may not be catered or provided by subcontract, and such other terms and conditions as may be imposed in the public interest. [Liquor Control and Licensing Act, sections 12(3) and 27; Liquor Control and Licensing Regulations, section 52] 7.7.2. Conditions for liquor sales and service on the playing area of a golf course The following general terms and conditions apply to liquor sales and service to patrons on the playing area of a golf course from kiosks, take-out windows, beverage carts and interior liquor primary service bars: golf course applicants/licensees must notify the Liquor Control and Licensing Branch of their intention to serve liquor to patrons on the playing area from a kiosk, take-out window, beverage cart, or through the interior liquor primary service bar SECTION 7 – LIQUOR SERVICES AND SALES Page 17 Liquor Licensing Policy Manual a golf course must have a liquor primary licence to serve liquor from a kiosk, take-out window, or beverage cart; a golf course must have an interior liquor primary licence to allow service from the main service bar to the playing area in the case of service to the playing area from an interior bar, the liquor primary service bar must be located such that liquor is not carried through an unlicensed area or an area licensed under a different licence such as a food primary one beverage cart is permitted for every nine holes on a golf course persons serving liquor on the playing area of the golf course must be employed by the licensee of the liquor primary licensed establishment, be at least 19 years of age, and have successfully completed Serving It Right: The Responsible Beverage Service Program liquor purchased for consumption on a golf course must not be consumed or carried in areas other than the playing area or the liquor primary area the licensee is responsible for ensuring that patrons do not bring their own liquor onto the course liquor service may be offered only during the hours stated on the liquor licence during the hours of liquor service, snacks and non-alcoholic beverages must be available for sale at reasonable prices rules pertaining to the availability of liquor service on the playing area from beverage carts, kiosks, take-out windows or from the interior liquor primary service bar are to be posted before the first tee box where patrons can see them the playing area does not include practice areas such as the driving range or the putting green signs must be posted at the tee box one hole before a roadway crossing notifying golfers that they are not to consume or hand-carry beverages containing alcohol while crossing public roads in a golf cart, and such other terms and conditions as may be imposed in the public interest. [Liquor Control and Licensing Act, sections 12(2) and 12(3); Liquor Control and Licensing Branch Policy] 7.7.3. Conditions for liquor sales and service on motor vessels In addition to such other terms and conditions as may apply to a liquor primary licence, the general manager may attach the following conditions to the liquor primary licence of a motor vessel: federal safety standards for the type of boat transportation offered must be met liquor kept on board must be ordered through a designated liquor store or other person approved by the Liquor Distribution Branch, unless otherwise approved by the general manager 9 dockside liquor service offered more than one hour before sailing and after the end of the boat transportation provided will be as authorized by the general manager, taking into account a resolution of the local government or First Nation 10 , and such other terms and conditions as may be imposed by the general manager in the public interest. F F F [Liquor Control and Licensing Act, section 12(3); Liquor Control and Licensing Branch Policy] 7.7.4. Conditions for liquor sales and service through room service In addition to such other terms and conditions as may apply to a licence, a licensed establishment offering overnight accommodation to registered guests may sell and serve liquor to registered adult guests in their room, provided: 9 See related discussion and policy under Ordering Liquor earlier in this chapter. If dockside liquor service is proposed beyond one hour before sailing or after the end of the boat transportation provided, a resolution from local government or First Nation commenting on the request must first be obtained. The general manager will then take into account any comments provided by the local government or First Nation in determining whether it is in the public interest to permit dockside liquor service for the longer period requested. 10 SECTION 7 – LIQUOR SERVICES AND SALES Page 18 Liquor Licensing Policy Manual sale and service is only during the hours of liquor service allowed on the licensee’s licence the types of liquor sold and served in this way are allowed for sale and service by the terms and conditions of the licence, the establishment offers room service meals to registered guests, and the licensee complies with such other terms and conditions as may be imposed by the general manager in the public interest. [Liquor Control and Licensing Act, section 12(3); Liquor Control and Licensing Regulations, section 48(1)] 7.7.5. Conditions for liquor sales and service through mini-bars Unless restricted from doing so by the terms and conditions of its licence, an establishment with a liquor primary licence offering overnight accommodation to registered guests may provide a mini-bar service through which liquor may be purchased at any time in guest rooms. In addition to such other terms and conditions as may apply, the general manager may attach the following conditions to the liquor primary licence of an establishment providing mini-bar service: key access to locked mini or portable bars is only extended to registered guests over the age of 19 years, and such other terms and conditions as may be imposed in the public interest. [Liquor Control and Licensing Act, section 12(3)(b); Liquor Control and Licensing Regulations, section 48(2); Liquor Control and Licensing Branch Policy] 7.7.6. Conditions for liquor sales and service in stadiums/arenas In addition to such other terms and conditions as may apply to a liquor primary licence, the general manager may attach the following conditions to the liquor primary licence of a stadium/arena: liquor service is always event driven (see 7.7.7 – event driven licences) sale or service of spirits is prohibited unless otherwise authorized by the general manager (see – stadium boxes) sale or service of liquor in the stands is permitted only if authorized by the general manager beverages must be served in plastic, paper or other disposable containers, including disposable/recyclable plastic bottles that are uncapped prior to handing them over to patrons, unless otherwise authorized by the general manager liquor must not be sold at an activity or event without the written consent of the organizer or promoter sponsoring the activity or event minors are allowed to be present in the tiered seating area except when there is adult entertainment stadium vendors (hawkers) must not be paid on a commission basis hawkers must not be minors, and areas of the stadium‘s tiered seating area are designated as areas where the possession and consumption of liquor is not allowed; unless otherwise authorized by the general manager, these areas must: o consist of a reasonable choice of seats within the range of ticket prices offered at the stadium, and o are each of a size appropriate to the level of demand for seats in those areas of the stadium. [Liquor Control and Licensing Act, section 12(3)(b); Liquor Control and Licensing Regulations, section 49; Liquor Control and Licensing Branch Policy] 7.7.7. Stadiums/arenas, concert halls, convention centres and live event and movie theatres: event driven licences When the liquor primary licence is event driven the following general terms and conditions apply: SECTION 7 – LIQUOR SERVICES AND SALES Page 19 Liquor Licensing Policy Manual the event must be a discrete event which is presented through individuals or films or broadcasts; the hours of liquor service must be associated with the events and are limited, as appropriate for the particular establishment, to a short time before, during and after the event; the establishment is always licensed but the hours of service are very limited and are always related to the presentation of a discrete event - liquor cannot be sold or served at other times unless the establishment is temporarily de-licensed and another licence comes into effect – such as an SOL. [Liquor Control and Licensing Act, section 12(3)(b); Liquor Control and Licensing Regulations, section 8; Liquor Control and Licensing Branch Policy] 7.7.9 Stadiums – Private suites/boxes: self-service, spirits and minors Stadiums which have a liquor primary licence may apply for approval to allow stocking of private suites/boxes and self-service by the patrons using those suites/boxes. This may include stocking full bottles of spirits allowing for “bottle service,” i.e. the practice of patrons having full bottles of spirits and serving themselves from those bottles, in the suite/box. The term ‘suite/box’ means an area in a stadium which is clearly delineated on all four sides as separate seating, with three walls being floor to ceiling and with one or more doorways, which is rented as a whole and with clear views of the events occurring at the stadium and which is rented for event viewing either by the event or game or for all or part of a season. The following terms and conditions apply to self-service in private suites and boxes All liquor used in the suites/boxes must be purchased from the licensee at regular prices; All types of liquor may be pre-stocked; Glassware is permitted in the suite/box; Patrons may serve themselves from the liquor supplied to the suite/box; staff may also serve patrons; Liquor must not be taken from the suite/box to other parts of the stadium; Minors may be present in the suite/box but if there are no adults present the liquor must be secured in a locked cabinet; No other form of entertainment is allowed; the suite/box is intended for viewing the entertainment provided at the stadium; Suite/box renters may order liquor from the licensee for an event and have it stored in a refrigerator or bar in the suite/box; If the suite/box is for the exclusive use of one renter, liquor remaining at the end of the event may be stored in a locked cabinet in the suite/box for use at a different event; excess liquor must not be taken away from the stadium; If the suite/box is not used exclusively by one renter then at the end of the event all remaining liquor must be returned to the licensee; Licensees are required to regularly monitor suites/boxes to ensure compliance with liquor laws and the terms and conditions of the licence; In addition to the enforcement actions that the general manager can take, the licensee must also immediately remove intoxicated patrons from the establishment and immediately remove or lock up all stocked liquor if patrons of the suite/box are over consuming or intoxicated or minors are consuming liquor and, for the rest of that event, allow only regular liquor service for consumption in the suite/box. It is the responsibility of licensees to ensure that they have access to and control over all areas inside the stadium, including private suites/boxes. SECTION 7 – LIQUOR SERVICES AND SALES Page 20 Liquor Licensing Policy Manual Where licensees require locked storage cabinets in private suites/boxes, they must retain copies of the keys or access codes for every cabinet or storage area in the boxes and must provide the keys and access codes to liquor inspectors upon request. Spirits may be sold and served in private suites/boxes. Minors are allowed in private suites/boxes in licensed stadiums. Of course, minors must not have access to or consume liquor. 7.7.10 Downhill ski resort areas – exemption endorsement to permit minors The following conditions apply to the liquor primary licence of an establishment, located at a downhill ski resort area, for which the general manager has approved an endorsement to permit minors: minors are accompanied by a parent or adult guardian minors leave the premises no later than 8:00p.m. signage is placed in a prominent location within the establishment that reads “Minors are permitted until 8:00p.m. when accompanied by a parent or guardian”, adult entertainment (see 11.5.1), if offered, is not provided until after 8:00 p.m., and minors are not permitted when any gaming (gambling) activity in taking place, with the exception of ticket raffles licensed under the Gaming Control Act or the sale of B.C. lottery products. [Liquor Control and Licensing Act, sections 12(2), 12(3), and 12(6), Liquor Control and Licensing Regulations, section 9(a)(ii), and Liquor Control and Licensing Branch Policy] 7.7.11 Conditions for liquor sales and service in movie and live event theatres The April 2012, amendment to the Liquor Control and Licensing Regulation removed the prohibition on the liquor primary licensing of movie theatres, authorized live event theatres to show films and broadcasts (including movies) with no liquor service or apply to serve liquor in the lobby at film and broadcast events and to licence theatre auditoriums. Licensed live event theatres may show films or broadcasts and may have live all-ages events without liquor service without seeking approval from or providing notice to the branch. The liquor service area from which patrons obtain their liquor must not be in the auditorium. Although individual patron orders may be taken provided in the auditorium, hawking of liquor (offering of pre-poured drinks from a tray) is not allowed in the auditorium. Multiplex theatres may be licensed subject to the following terms and conditions: Patrons must have purchased ticket to enter theatre; Liquor service is permitted in a separate, age restricted (no minors permitted) LP lounge and any connected age controlled theatre auditoriums (i.e. not the entire lobby area); LP lounge, theatre auditorium and connecting hallways/areas may all be part of the licensed area; Hours of liquor service to be event-driven (i.e. from 1 hour prior to 1 hour after movie screening) within the approved liquor service hours; Liquor service is also permitted in a separate, all ages food primary (FP). Single screen movie/live event theatres may be licensed under the following conditions: Patrons must have purchased ticket to enter theatre; Liquor service permitted in the lobby and theatre auditorium, all of which may be licensed as an LP; SECTION 7 – LIQUOR SERVICES AND SALES Page 21 Liquor Licensing Policy Manual Liquor service is permitted in the theatre lobby with minors present; No liquor service is permitted in the theatre auditorium if minors are present (an exception is made for live events at live event venues that have already obtained prior approval of the general manager); Hours of liquor service to be event-driven (i.e. from 1 hour prior to 1 hour after movie screening) within the approved liquor service hours; Licensees have discretion to determine if a given movie/event is age restricted (no minors permitted) without applying for LCLB permission or notifying LCLB; o Liquor service for age restricted (no minors permitted) movies/events is permitted in the auditorium and the theatre lobby(appropriate signage that no minors are permitted must be posted); and o Liquor service for-all ages movies/live events is permitted only in the theatre lobby area; Live event venues will be able to show pay-per-view or other broadcasts; Liquor service also permitted in a separate, all ages food primary (FP). 7.7.12 Section 27 green lined areas Green lined areas allow licensees flexibility in using and/or renting portions of their establishments without having to apply to the branch to be temporarily de-licensed and permit a number of privileges not otherwise available. Green lined areas can be separate rooms, a separate floor of the establishment or an open area adjoining the red lined area with no physical division. The green line option only applies to a club, recreational centre, community centre or municipal or provincial cultural centre. Section 27 (a) green lined areas – personal liquor stock: Section 27 (a) authorizes the general manager to permit a licensee to extend “locker privileges" to members of establishments licensed under a club licence (private clubs could be golf courses, curling clubs) and recreational centres and in some cases, reviewed individually, for members of recreation centres, community centres, cultural centres etc. These privileges allows the member to keep a small quantity of liquor in the member’s locker for personal consumption. The liquor must be purchased from the licensee and consumed in the area approved for this. No external liquor can be brought into the establishment or locker area and the liquor must not be taken home or away from the premises. The areas where this privileges applies are green lined on the establishment’s plans. Section 27(b)(i) green lined areas – alternate use: Section 27(b)(i) of the act authorizes the general manager to grant a form of discretionary licensing to a club, recreational centre, community centre or municipal or provincial cultural centre. When granted this type of licence the licensee has the option of providing or not providing liquor service in areas covered by the s. 27(b)(i) authorisation. These areas are noted on the premises’ plans by a green line. When a green lined area is not being used for liquor service, the rules governing a licensed area no longer apply. The practical result of this designation is that when liquor is not being served these areas are unlicensed. The licensee does not need to apply to temporarily de-license the area. Section 27(b)(ii) green lined areas – off premises: Section 27(b)(ii) authorizes the general manager to permit liquor service off the licensed premises but on the same site. This paragraph is not used very often but typical examples of its use are for a special event such as a garden party, club barbecue or outside function. For example, such authorization could allow club members and their guests to consume liquor that they have purchased from the licensee on the lawn at the back of the premises. SECTION 7 – LIQUOR SERVICES AND SALES Page 22 Liquor Licensing Policy Manual When a licensee decides that it will provide liquor service in a green lined area, the area must operate as an extension of its red lined area. When, however, a licensee decides that it will not provide liquor service in its green lined areas (the licensee decides to temporarily de-license the areas – there is no need to apply to the branch), the areas may be used in three ways: A liquor primary club can hold an event for its members and the general public. The green lined area may be rented to a public organization for a non-liquor event. The green lined area may be rented to a Special Occasion Licence (SOL) holder. The SOL holder is subject to all the terms and conditions which apply to the SOL: the SOL holder may invite anyone from the public including minors and must: o purchase their own liquor for use at the SOL, and o ensure that liquor does not move in either direction between the still active LP or LP club red lined area and the SOL licensed green lined area for any reason whatsoever. The permanent licensee may have its licence in effect in the red lined area while an SOL renter is having an event in one or more of the green lined areas. Note: multiple licences cannot overlap in the areas allocated for each. If a licensee uses a green lined area for an unlicensed event and continues to operate the main liquor service area (the red lined area), there must be adequate temporary physical separation between the unlicensed and licensed areas given there may be minors present in the green lined areas. This separation could be in the form of: a wall curtain wall dividers sliding doors Entrance and exit between these areas must be strictly controlled to ensure that minors do not have to pass through a red lined area to access or exit the green lined area or to use the washrooms. Terms and conditions applicable to green lined areas: Licensees may have one or more green line areas while the bar will be red lined; When an area is being used as a green lined area (unlicensed) and that area includes the bar, liquor must be locked up and minors are permitted; When an area is being used as a red lined area, meaning liquor is being sold, served and consumed in that area, minors are not permitted except as allowed by policy (see 10.3.5). [Liquor Control and Licensing Act, sections 12(2), 12(3), 12(6),18(2), 18(2.1), 18(3), 25 through 27, and 39; Liquor Control and Licensing Regulations, section 9 (a)(ii), 48(1), 48(2), 49, 50 and 52; Liquor Control and Licensing Branch Policy] 7.8 Sacramental Wine Policy Rationale Section 63 of the Liquor Control and Licensing Act, permits a minister of religion to import wine from outside British Columbia for consumption in British Columbia for sacramental purposes. Further, section 63 permits 2 or more ministers of religion to import wine jointly from outside British Columbia for consumption in British Columbia, to be kept in common stock, used, divided and distributed among them for sacramental purposes. In addition Federal legislation permits the importation of intoxicating liquor for sacramental purposes. Liquor imported into British Columbia for sacramental purposes is exempt from all federal excise taxes and is mark-up exempt. Sacramental wine that is sourced from within British Columbia is also given mark-up exemption status. Both provincial and federal legislation recognize that wine used for sacramental purposes is unique and deserves special status under liquor control regimes. Along with this SECTION 7 – LIQUOR SERVICES AND SALES Page 23 Liquor Licensing Policy Manual special status, and its associated tax and mark-up exemptions, certain controls are put in place to ensure that sacramental wine is used for its intended purpose. These controls are designed to maintain the integrity of the liquor control system and to ensure that sacramental products are not sold for the personal use or consumption of any person. For information on wine store licences for the sale of sacramental wine, please see section 16. Policies 7.8.1. Ministers of religion Sacramental wine may only be used by, or sold to, members of the clergy such as priests, ministers, rabbis, or the official representatives of such persons. [Liquor Control and Licensing Act, section 63, Liquor Control and Licensing Branch Policy] 7.8.2. Religious ceremonies in a regular place of worship Sacramental wine may only be used in, or sold for, religious ceremonies conducted by persons authorized to preside at such ceremonies in a regular place of worship such as a church, temple, or synagogue. [Liquor Control and Licensing Act, section 63, Liquor Control and Licensing Branch Policy] 7.8.3. Social events associated with or ancillary to religious ceremonies Sacramental wine must not be used, sold for use, or consumed at any social events, including social events or occasions associated with or ancillary to religious ceremonies whether held on or off church, temple, or synagogue premises. Social events include, without limitation, wedding receptions, baptisms, confirmations, first communion ceremonies, bar mitzvahs, Seders and ordinations. [Liquor Control and Licensing Act, section 63, Liquor Control and Licensing Branch Policy] 7.8.4. Personal consumption Sacramental wine must not be used, or sold, for the personal consumption of any person. [Liquor Control and Licensing Act, section 63, Liquor Control and Licensing Branch Policy] SECTION 7 – LIQUOR SERVICES AND SALES Page 24 Liquor Licensing Policy Manual SECTION 8: Management and Control of a Licensed Establishment 8.0 Introduction This chapter covers topics relating to how establishments licensed by the Liquor Control and Licensing Branch are managed and controlled. The policies and practices discussed here are, generally, the techniques the branch uses to encourage responsible management of licensed establishments. These and related issues are discussed in this chapter under the headings: General Consumption Consumption by Employees Management of Patron Conduct, and Serving It Right Program. 8.1 General Consumption Policy Rationale Intoxication in a public place is an offence under the Liquor Control and Licensing Act. To ensure that liquor service practices do not encourage people to become intoxicated, the Act and regulations specify certain conditions under which liquor can be consumed in a licensed establishment. More to the point, they specify conditions under which it is not to be consumed. Under section 43 of the Act, liquor may not be served or sold to anyone who is either intoxicated or apparently under the influence of alcohol. This section also requires that owners and staff of licensed establishments are not to allow a person to become intoxicated, or to allow an intoxicated person to remain in any part of the establishment covered by the liquor licence. In keeping with this section of the Act, sections of the Liquor Control and Licensing Regulations ensure that licensees have control over when and how liquor will be consumed in their establishments. Section 44(3) requires that, unless authorized by the general manager, licensees or their staff must not allow patrons to consume liquor later than 1/2 hour after the time stated on the licence for the hours of liquor service. Closing time for licensed establishments is typically the same as the time at which liquor service must end, as stated on the face of the licence, except in the case of restaurants as they. have the option of remaining open 24 hours a day, although liquor consumption is limited to the hours stated on the face of the licence. Under section 42, except in the case of “Bring Your Own Wine” for food primary licensees, patrons are not allowed to drink liquor that has been purchased elsewhere, and licensees must ensure that liquor purchased elsewhere is not consumed in their establishment. Furthermore, licensees must ensure that the liquor they sell is not taken off their premises, with two exceptions: a bottle of unfinished wine may be taken from the establishment, provided the licensee seals the bottle before it is taken away by the patron; and liquor sold for off-premises consumption, as permitted by the Act, regulations, and the terms and conditions of the licence. Both liquor inspectors and the police can enforce these provisions of the Act and regulations. Other than, or in addition to any actions the police may take, the policies below specify that the general manager may take action 1 if the licensee does not observe these liquor consumption rules. They also specify a range of F F 1 The range of actions the general manager may take for non-compliance with these and other provisions of the Act and regulations is detailed in section 20 of the Liquor Control and Licensing Act. SECTION 8– MANAGEMENT AND CONTROL OF A LICENSED ESTABLISHMENT Page 1 Liquor Licensing Policy Manual exceptions or variations to these consumption rules, including liquor in washrooms, room service, minibar service, clubs, and manufacturer endorsement areas. For requirements specific to caterers, see section 14.8.7. For requirements specific to licensee retail stores, see section 15.5.6. For requirements specific to wine stores, see section 16.12. For requirements specific to manufacturer endorsement areas, see section 17.20 Policies 8.1.1. Intoxicated patrons The general manager may take action against a licensee if the licensee or an employee: sells or gives liquor to an intoxicated person or a person apparently under the influence of alcohol, or permits an intoxicated person to remain in any part of a licensed establishment where liquor is sold, served or otherwise supplied. [Liquor Control and Licensing Act, section 43] 8.1.2. Control of liquor consumption in licensed establishment Except in the instances specified in policies 8.1.3, 8.1.4, 8.1.5 and 8.1.9, the general manager may take action against the licensee of a liquor primary or food primary licensed establishment if the licensee or an employee: Revised December 2012 allows patrons to consume liquor in the licensed establishment beyond 1/2 hour after the time stated on the licence for the hours of liquor service permits liquor not purchased in the licensed establishment to be consumed there unless the liquor is a bottle of wine brought into a food primary establishment under the Bring Your Own Wine permission. permits liquor purchased in the licensed establishment to be taken from there, unless the liquor is a bottle of wine that is unfinished by a patron and sealed by the licensee before being taken by that patron from the licensed establishment, or the liquor is sold for consumption off premises in accordance with the requirements of offpremises sales 2 . if in a food primary establishment, does not ensure that liquor is taken from patrons within ½ hour after the time stated on the licence for the hours of liquor service, unless the liquor is a bottle of wine sealed in the above manner, or if in a liquor primary establishment, permits patrons to remain in the licensed establishment longer than ½ hour after the time stated on the licence for the hours of liquor service, or any longer time authorized by the general manger. F F [Liquor Control and Licensing Regulations, sections 42(2), 42(4), 44(1), and 44(3)] 8.1.3. Liquor in Washrooms Patrons are permitted to take their drinks into the washroom of a licensed establishment, provided: 2 the entrance to the washroom is located immediately adjacent to the licensed area in which liquor consumption is permitted patrons are not required to walk through an unlicensed area to enter the washroom, and the licensee adequately supervises the activity of patrons in the washroom. For further information see section 7.6 Off-Premises Sales. SECTION 8– MANAGEMENT AND CONTROL OF A LICENSED ESTABLISHMENT Page 2 Liquor Licensing Policy Manual [Liquor Control and Licensing Act, section 12(2); Liquor Control and Licensing Branch Policy] 8.1.4. Liquor on Stages Professional entertainers are permitted to consume liquor on an unlicensed (non redlined) stage provided they do not become intoxicated; however patrons are prohibited from taking or consuming liquor on an unlicensed stage even when they are providing entertainment such as during an amateur or karaoke night. Dedicated stages cannot be included within the redlined area as per Policy 3.4.4. [Liquor Control and Licensing Act, section 12(2); Liquor Control and Licensing Branch Policy] 8.1.5. Conditions for consumption outside the licensed area in liquor primary establishments In the following liquor primary establishments and specified circumstances, liquor may be consumed outside the area designated for liquor consumption: licensed establishments offering overnight accommodation to registered guests in their rooms 3 , provided this service is during the hours of sale permitted by their liquor licence and is of the types of liquor that can be sold under the terms and conditions of the licence, and provided the establishment also offers room service meals to registered guests, or a mini-bar service through which liquor may be purchased at any time in guest rooms, unless restricted from doing so by the terms and conditions of the licence, and clubs, provided the general manager has authorized the sale of liquor for consumption by members and their guests outside the licensed area or off the premises. F F [Liquor Control and Licensing Act, section 27(b); Liquor Control and Licensing Regulations, section 48] Revised December 2012 8.1.6. Conditions for the removal of unfinished bottles of wine Patrons of a licensed establishment may take away an unfinished bottle of wine, provided the licensee reseals the bottle. The licensee is responsible for informing the patron of the requirements for transporting liquor in a vehicle. The sealed bottle of wine must be placed out of reach of any person in the vehicle, such as behind the rear seat, in the trunk, or in an exterior compartment. [Liquor Control and Licensing Regulations, section 42(4)(a); Liquor Control and Licensing Branch Policy] 8.1.8 Conditions for “Bring Your Own Wine” Food Primary licensees may allow customers to bring their own bottle of wine to consume with their meal into licensed restaurants provided: Revised December 2012 3 the wine is unopened and commercially produced (includes table wine, sparkling wine, fortified wines such as port, sherry and Asian wine-like products such as sake which are not distilled and, subject to the licensees’ approval, could also include boxed wine) the wine is purchased from a BC based government, private liquor or wine store or is a product the patron has purchased outside of BC (no UVin or home made products are permitted) customers hand the bottle to the licensee or staff person as soon as they enter the restaurant so the wine can be served in the same manner as wine selected from the menu (the licensee may set a corkage fee for this service) maximum serving sizes and responsible beverage service principles still apply. See also 7.7 Special Conditions for additional information about room service and mini-bar service. SECTION 8– MANAGEMENT AND CONTROL OF A LICENSED ESTABLISHMENT Page 3 Liquor Licensing Policy Manual Participation is up to the individual licensee and licensees are not compelled to allow a customer to bring their own wine. Licensees are not required to seek approval or provide notice to the Liquor Control and Licensing Branch that they are participating. Revised December 2012 Food Primary establishments or parts of establishments that are event driven and lack daily operating hours in which they are open to the public (e.g. banquet rooms) may not permit patrons to bring their own wine into the establishment or that part of the establishment. [Liquor Control and Licensing Act, sections 12(2), 27(b), and 43; Liquor Control and Licensing Regulations, sections 14(1)(g), 18(2), 42(2), 42(4), 44(1), 44(3), and 48; Liquor Control and Licensing Branch Policy] 8.2 Consumption by Employees Policy Rationale Certain sections of the Liquor Control and Licensing Act and Regulations are intended to reduce pressure to drink excessively – that is, anything that might cause a person to drink more than they should, or even to the point of intoxication. Among other things, they also convey the message that alcohol and good judgment don’t mix. These provisions apply as much to the employees in licensed establishments as they do to customers – perhaps even more so, because employees are responsible for enforcing responsible drinking behaviour in the establishment. For these reasons, section 42(3) of the Liquor Control and Licensing Regulations directs licensees and their employees not to consume liquor while working. When not on duty, an employee is considered a regular customer for liquor service purposes, although they may enjoy discounts on food menu items or other special privileges as employees of the establishment. Therefore, when it comes to liquor, the same rules apply to the off-duty employee as apply to other customers. They may not purchase liquor at a reduced price or be given it free of charge in a volume that could result in over-consumption 4 . Employees who drink in the establishment after work must not be minors and they may only be served and consume liquor during the hours of sale allowed by the establishment’s liquor licence. Finally, liquor may not be offered to employees in lieu of wages or a bonus. F F For requirements specific to caterers, see section 14.4.5. For requirements specific to licensee retail stores, see section 15.10. For requirements specific to wine stores, see section 16.12.2. Policies 8.2.1. Licensee and employee consumption of liquor while working The general manager may take action against a licensee if either the licensee or the employees of a licensed establishment are found to be consuming liquor while working on the licensed premises. [Liquor Control and Licensing Regulations, section 42(3)] 8.2.2. Employee consumption of liquor after work An employee who has completed a full work shift may remain in the premises and consume liquor under the following conditions: 4 liquor may not be offered to the employee in an unlimited or unspecified quantity for a single price, or at a different price from that offered to patrons the employee must be of legal drinking age This requirement is also related to stipulations about pricing (see 7.3 Pricing). SECTION 8– MANAGEMENT AND CONTROL OF A LICENSED ESTABLISHMENT Page 4 Liquor Licensing Policy Manual liquor may only be served and consumed during the hours of sale indicated on the face of the licence liquor may not be offered to the employee in lieu of wages or a bonus. [Liquor Control and Licensing Act, section 33; Liquor Control and Licensing Regulations, sections 41 and 44; Liquor Control and Licensing Branch Policy] 8.3 Management of Patron Conduct Policy Rationale The statutory provisions and policies associated with the management of patron conduct are primarily concerned with minimizing the social costs of alcohol consumption. Liquor service to persons who are intoxicated, over-crowding of establishments, sale of liquor to minors, and the by-products of these practices such as unruly or even violent behaviour and impaired driving are examples of the serious social problems the policies on this topic seek to prevent. Management of patron conduct policies are based on the duties, set out in the Liquor Control and Licensing Act, of both the general manager and the licensee. As discussed earlier in this manual, particularly in the chapters dealing with hours of operation and premises, the general manager has a duty, under section 6 of the Act, to “supervise the conduct and operation of a licensed establishment”. Within this context, the general manager sets licence terms and conditions aimed at preventing conditions that might result in over-service, over-consumption and loss of control in the establishment. Licensees have additional responsibilities over and above living up to the terms and conditions spelled out on the face of the liquor licence. They have a dual responsibility when it comes to controlling the conduct of patrons within the establishment the extent that they must control the conditions that might lead to patron misconduct, and they must deal with inappropriate conduct when it arises. Section 43 of the Act requires that a licensee not permit a patron to become intoxicated nor allow a patron who is intoxicated to stay in the establishment. Section 7.1 of the Liquor Control and Licensing Regulations requires licensees and servers to complete the responsible beverage service training program, Serving It Right, which ensures they have the knowledge and skills to recognize and prevent impairment and to manage impaired patrons. Sections 46 and 47(2) of the Act ensure licensees have the authority to deal with inappropriate or unsafe patron conduct. Licensees may ask a person to leave or forbid a person to enter if the person is intoxicated, or “undesirable” (taking care not to contravene the Human Rights Act), or if they believe the person is carrying a weapon. The onus is on licensees to ensure sufficient trained staff are employed at all times to fulfill their obligations to prevent intoxication and other inappropriate behaviour and deal with it when it arises. Furthermore, under section 20(1)(c.1) of the Act, the general manager may take action against a licensee for failing to take “… reasonable measures to ensure that the operation of the establishment is not contrary to the public interest and does not disturb persons in the vicinity of the establishment”. Reasonable measures might include such things as having appropriate signage and controls at the entrance to and exit from the establishment; parking lot lighting; noise controls; and appropriate steps taken upon receipt of a complaint or in preventing an incident from becoming a recurring problem. An isolated incident or contravention would not, on its own, be evidence of a licensee’s failure to take reasonable measures of this nature. Rather, the general manager would look for a pattern of disturbances or problems, and evidence that the licensee had not taken “reasonable” steps to correct the problem — even though these steps were “reasonably” within their ability to put into effect. 5 F See related policy and discussion on reasonable measures in the Compliance and Enforcement Policy and Procedures Manual –Desk Reference. The burden of proof is on the licensee for demonstrating “due diligence” — that is, demonstrating that appropriate steps have been taken to institute reasonable measures. A mistake or ignorance of the law is not a defence for failing a test of due diligence. 5 SECTION 8– MANAGEMENT AND CONTROL OF A LICENSED ESTABLISHMENT Page 5 Liquor Licensing Policy Manual In the interests of public safety, the general manager has the power under section 22 of the Act to take immediate action and temporarily close an establishment where patron conduct is riotous, drunken or disorderly. Sometimes, situations may arise where public safety is threatened because of a particular event or temporary circumstance occurring in the vicinity of a licensed establishment. In these cases, the general manager may exercise his authority under section 23(1) of the Act to take immediate steps to temporarily close, or impose conditions on an establishment, even if the risk to public safety is unrelated to the manner in which the establishment is managed. The general manager may also exercise his authority under this section if public safety issues might arise when a planned event is to be held in close proximity to a licensed establishment. The policies below largely reflect on the relevant statutory obligations, and the authority of the general manager to take action either when licensees fail to perform their duty in this area or where risks to public safety so warrant. For requirements specific to caterers, see section 14.8.7. Policies 8.3.1. Licensee’s responsibility to manage patron conduct The general manager may take action against a licensee if the licensee or an employee of the licensed establishment permits patrons to: become intoxicated enter, or having entered, to remain in a licensed establishment with a knife, firearm or other weapon, or otherwise engage in riotous, violent, drunken or disorderly conduct, or threaten the safety of other patrons and employees, or if a licensee permits an employee to: serve liquor in a manner that is likely to promote or encourage intoxication 6 , or serve liquor to patrons who are intoxicated or who are minors. F F [Liquor Control and Licensing Act, section 6(c), 43, 46, and 47(2); Liquor Control and Licensing Regulations, section 41(2); Liquor Control and Licensing Branch Policy] 8.3.2. Reasonable measures 7 The general manager may, on the general manager’s own motion or on receiving a complaint, take action against a licensee for a failure to take reasonable measures to ensure that the operation of the establishment is not contrary to the public interest and does not disturb persons in the vicinity of the establishment. The general manager may consider whether the number and severity of any incidents and/or contraventions indicate a pattern of disturbances or problems, and whether the licensee has taken measures that are: F reasonable in the circumstances, and reasonably within the capacity of the licensee to effect in order to curtail those disturbances or problems. [Liquor Control and Licensing Act, section 20(1)(c.1); Liquor Control and Licensing Regulations, schedule 4, section 1(2); Liquor Control and Licensing Branch Policy] 6 This would include serving liquor by the tray load, or other ways of promoting sales or serving liquor that are likely to encourage drinking to the point of intoxication (see 7.3 Liquor prices and 7.4 Dispensers and Drink Sizes). 7 In the Compliance and Enforcement Policy and Procedures Manual-Desk Reference, see related policy and detail on the problems or disturbances that may require a licensee to take “reasonable measures”, and the form these measures might take. SECTION 8– MANAGEMENT AND CONTROL OF A LICENSED ESTABLISHMENT Page 6 Liquor Licensing Policy Manual 8.3.3. Licence suspension and closure of premises 24 hour suspensions (s. 22 Act) A liquor inspector, peace officer, or other person delegated by the general manager may suspend the licence and order the immediate removal of patrons and closure of a premises in which: patrons or employees are engaging in riotous, violent, drunken or disorderly conduct, or the safety of one or more persons at the licensed establishment is threatened. The suspension and closure of the premises may take effect without a hearing, and may be for a period of not more than 24 hours. Suspensions or Terms & Conditions up to 14 days (s. 23 Act) Under section 23 of the Act the general manager may, without a hearing, suspend a licence or impose terms and conditions for a period not exceeding 14 days, if he or she has reasonable grounds to believe that it is in the public interest to prevent the licensed establishment from continuing to operate as a result of extraordinary circumstances existing at, or being associated with the operation of, the licensed establishment. This power is available to address extraordinary circumstances where a 24 hour suspension is not adequate to ensure safety or protect the public interest, for example when there has been violence or extensive criminal activity, there is the risk of retaliatory gang violence, or a possibility of public unrest (i.e., during or after a community event). In such circumstances, a longer licence suspension may be needed to provide sufficient time for the branch to assess the situation and determine what is needed to eliminate the safety risks and rectify the situation. This authority is not delegated and exercising it is the sole prerogative of the general manager. [Liquor Control and Licensing Act, sections 22 and 23; Liquor Control and Licensing Branch Policy] 8.4 Serving It Right Program Policy Rationale HU Managers and staff of licensed establishments learn about responsible liquor service through a selfdirected program (online or in print) managed by go2, an independent, non-profit human resources association of the BC tourist industry. This program is called “Serving It Right: The Responsible Beverage Service Program.” The program contains information about the obligations of licensees, managers and staff when selling or serving liquor, along with helpful tips to meet those obligations (see www.servingitright.com/). UH People who sell and serve liquor are the front line in ensuring that liquor beverage service businesses act responsibly. It is especially important that people who are new to liquor service have access to suitable training. The Liquor Control and Licensing Act and Regulations require that licensees, managers and employees of licensed establishments not serve liquor to minors, or to those who are intoxicated. Ways to refuse service, or ask a patron to leave – without causing conflicts or strained relationships – are among the topics discussed in this training program. Under section 13 of the Act and section 43 of the Regulation, applicants and licensees must successfully complete this training as a condition of obtaining, transferring or renewing a liquor licence. As well, anyone managing a licensed establishment or a person serving in a licensed establishment must also have completed the program. For requirements specific to caterers, see section 14.4.4. For requirements specific to licensee retail stores, please see section 15.5.7. For requirements specific to manufacturers, see section 17.10. SECTION 8– MANAGEMENT AND CONTROL OF A LICENSED ESTABLISHMENT Page 7 Liquor Licensing Policy Manual Policies 8.4.1. Training requirements Section 13 of the Act and s. 43 of the Regulation set out the requirements related to the Serving It Right training program. Applicants and licensees A liquor licence will not be issued, transferred or renewed unless the “Serving It Right: The Responsible Beverage Service Program” has been successfully completed by the applicant or licensee to whom the licence will be issued, transferred or renewed. This rule applies to the following licence categories: liquor primary, liquor primary club, food primary, catering, licensee retail store, special occasion, manufacturer licences containing an endorsement referred to in section 18 of the Regulation, and manufacturer licences issued to establishments that provide samples under s. 53(1) of the Act. The term ‘applicant’ includes persons requesting a new licence, the transfer of an existing licence, registration of an external or internal share transfer, and approval of a third party operator agreement. If the applicant or licensee is a private or public corporation the Serving It Right requirement may be satisfied if the program is completed by a director, officer or employee of the corporation who will have responsibility for controlling the sale of liquor. The term "corporation" means an incorporated association, company, society, municipality or other incorporated body, however incorporated. For example, if the corporation hires a resident manager to run the daily operations of the establishment the requirement can be met by having that person complete the program. If the corporation enters a third party operator arrangement, that operator is not an employee and so a director, officer or employee of the corporation must complete the program. If the applicant or licensee is a partnership, at least one partner must complete the program. If the applicant or licensee is a sole proprietor that person must complete the program. A valid Serving It Right number issued by go2 to those who complete the program which is provided by the applicant on the applicable LCLB form will be taken as evidence that the applicant has met this requirement. Managers, servers, and other employees Anyone engaged, by contract or by employment, to manage a licensed establishment must have completed the Serving It Right training program before starting their contract or employment. Anyone hired or contracted as a bartender, server, sales staff or in any other position which requires the sale or service of liquor must have completed the Serving It Right training program before starting their employment. [Liquor Control and Licensing Act, section 13] SECTION 8– MANAGEMENT AND CONTROL OF A LICENSED ESTABLISHMENT Page 8 Liquor Licensing Policy Manual 8.4.2. Full exemptions from training requirement Completion of the “Serving It Right: The Responsible Beverage Service Program” is not required for: Revised February 2013 licensees and staff of an aircraft operating under a liquor primary liquor licence servers operating under a food primary liquor licence, unless: o the establishment has an endorsement for a licensed lounge area; o the establishment is a karaoke box style restaurant; o the food primary licence has a catering endorsement, in which case all servers at events must have Serving it Right certification; unpaid managers or servers in a club, operated under a liquor primary club liquor licence unpaid servers operating under a private or public special occasion licence, persons holding private special occasion licences, except where they may be acting on behalf of an organization, association or group, or effective April 1, 2009 servers in all types of establishments relocating to British Columbia from other Canadian jurisdictions who have a certificate showing proof of completion of one of the following responsible beverage service programs: Proserve Program (Alberta) Serve it Right (Saskatchewan) It’s Good Business (Manitoba) Smart Serve (Ontario) Service in Action (Quebec) It’s Good Business: Responsible Service of Alcohol (New Brunswick) It’s Good Business (Nova Scotia) It’s Our Business (Prince Edward Island) It’s Good Business: Responsible Service of Alcohol (Newfoundland and Labrador) Be a Responsible Server (B.A.R.S.) (Yukon) Licensees are responsible for ensuring that servers who have completed training in other jurisdictions are informed about relevant BC legislation, such as the legal drinking age and any relevant operating terms and conditions that apply to their establishments. Licensees must ensure that photocopies of all certificates from any of the programs listed above are available for inspection by a liquor inspector or police officer at all times. [Liquor Control and Licensing Regulations, section 43(2) and (7)] SECTION 8– MANAGEMENT AND CONTROL OF A LICENSED ESTABLISHMENT Page 9 Liquor Licensing Policy Manual SECTION 9: Food Service 9.0 Introduction This chapter covers topics related to what kinds of food must be made available to patrons in a licensed establishment, facilities used in food preparation and exemptions from the requirement to serve food. The policies contained in this chapter are the tools the branch uses to ensure the availability of food in licensed establishments. These policies are discussed under the heading: General Conditions. 9.1 General Conditions Policy Rationale The availability of food in licensed establishments promotes moderation by encouraging people to eat while they drink — or better yet, to view alcohol consumption as a complement to a meal. The distinction is not an insignificant one. Consumption of food lessens the intoxicating effects of liquor. Just as important, though, is encouraging a public attitude in which liquor is seen as an accompaniment to food, rather than an activity that is indulged in for its own sake. State of mind is as important to moderation as are the moderating physical effects produced by eating while drinking. In part, this is the reasoning behind food primary licensed restaurants enjoying greater flexibility within the terms and conditions of their liquor licences than is true for liquor primary licence-holders. As noted in section 11(1) of the Liquor Control and Licensing Regulations, a food primary licence is specifically for an establishment in which “… the primary purpose of the business … is the service of food during all hours of its operation”. Liquor is, then, offered as a pleasant accompaniment to a meal. Branch policy for food primary licensed establishments prohibits liquor service in fast food or take-out restaurants where people may be leaving the premises with their meal or perhaps be inclined to “eat and run” to get on with the other commitments of their day. 1 For other types of food primary establishments, branch policy largely reiterates the requirement under section 11(2)(b) of the regulations, which states that “liquor must not be served unless the establishment is open for service of a varied selection of food items, including both appetizers and main courses, or their equivalent”. F F For liquor primary licensees, a provision under section 9(c) of the regulations guides food service in licensed establishments: “unless exempted by the general manager, food and non-alcoholic beverages must be available at reasonable prices to the patrons”, but food service in the range generally offered by a restaurant is not expected. A similar requirement, under section 18(6) of the regulations, is in place for manufacturers with licence endorsements for a designated lounge or special event area. There is no regulatory requirement for manufacturers with licence endorsements for a tour or picnic area to provide food or non-alcoholic beverages in these endorsement areas. Finally, the policies below address the authority of liquor inspectors to inspect the records and premises of licensed establishment to determine whether the necessary food items and non-alcoholic beverages are available to customers. Additionally, liquor inspectors may inspect the premises to ensure that the establishment’s food preparation facilities are sufficient to provide these items. For requirements specific to catered events, see section 14.8.6. For requirements specific to manufacturer endorsement areas, see sections 17.20.10 through 17.20.12 1 See policy 3.1.2 and related discussion in section 3.1 Stage 1: Application for a New Licence. SECTION 9 – FOOD SERVICE Page 1 Liquor Licensing Policy Manual Policies 9.1.1. Type of food service in liquor primary licensed establishments Unless exempted by the general manager, licensees of liquor primary establishments, must make a reasonable variety of hot or cold snacks and non-alcoholic beverages available to patrons at reasonable prices. Food service in the range generally offered by a restaurant is not expected, however packaged snacks such as chips, peanuts, and those commonly found in vending machines do not meet the minimum food requirement for liquor primary establishments. [Liquor Control and Licensing Regulations, section 9(c); Liquor Control and Licensing Branch Policy] 9.1.2. Type of food service in food primary licensed establishments Licensees of food primary establishments must make a varied selection of food items available to patrons, including both appetizers and main courses or their equivalent. Liquor must not be served unless the establishment is open for service of these food items. [Liquor Control and Licensing Regulations, section 11(2)(b), Liquor Control and Licensing Branch Policy] 9.1.3. Inspection to determine availability of food and non-alcoholic beverages Liquor inspectors may inspect the records and licensed premises of liquor primary establishments, food primary establishments to determine whether required food items and non-alcoholic beverages are available to customers. [Liquor Control and Licensing Act, section 73(1), Liquor Control and Licensing Regulations, sections 9(c), 11(2)(b), and 34, Liquor Control and Licensing Branch Policy] 9.1.4. Food preparation facilities in licensed establishments In the course of inspecting the licensed premises of liquor primary and food primary establishments liquor inspectors may consider whether the establishment has food preparation facilities sufficient to dispense the food items required under policies 9.1.2 and 9.1.3, and as otherwise required by regulation. [Liquor Control and Licensing Act, section 73(1); Liquor Control and Licensing Regulations, sections 9(c), 11(2)(b), 11(3)(a); Liquor Control and Licensing Branch Policy] SECTION 9 – FOOD SERVICE Page 2 Liquor Licensing Policy Manual SECTION 10: Minors 10.0 Introduction This chapter covers topics relating to the presence of minors in licensed establishments, including the identification of minors, requirements respecting minors as employees and as entertainers, whether it is appropriate to admit minors, and terms and conditions that apply when minors are permitted. These and related issues are discussed in this chapter under the headings: General Conditions, Minors as Employees or Entertainers, and Minors in Licensed Establishments. 10.1 General Conditions Policy Rationale Regulatory practice in British Columbia has been based on the view that the public interest is not served by expecting people to take on the responsibilities that go along with alcohol purchase and consumption until they reach the age of majority. The Liquor Control and Licensing Act includes both a general prohibition on providing liquor to a minor and a prohibition on minors possessing liquor – in other words, minors themselves commit an offence by possessing liquor. The reasons behind these sections of the Act and the policies that support them are public interest concerns about the effects of alcohol abuse on youth. Studies indicate that children are currently consuming larger amounts of alcohol, and at earlier ages, than before. Alcohol consumption by minors is associated with unwanted pregnancies, smoking, youth violence, poor school performance, youth suicide rates, and death and injury from driving accidents. It is also believed to have negative developmental impacts on the part of the brain responsible for higher-level thinking. One of the strategies to reduce the risk of children consuming liquor is to, generally, not permit minors in areas where the consumption of liquor is a primary activity. Licensees are responsible for ensuring that minors are not served or sold liquor, and for preventing the conditions under which this might happen. Licensees must do an initial assessment of every patron before permitting the person into a liquor primary establishment or other establishment in which the presence of minors is restricted, or before selling or serving liquor to them in any licensed establishment. Licensees must ensure that minors do not enter or remain in a licensed establishment where they are not permitted, and must ensure that minors are not served liquor. A server or bartender cannot rely on the fact that door staff admitted a patron into the licensed establishment as the basis for serving that patron. The server or bartender must also make a determination that the patron is not a minor prior to serving them liquor, or allowing them to remain in the licensed establishment. Policies 10.1.1. Prohibitions that apply to Minors It is an offense for a minor: to purchase or consume liquor at a licensed establishment; to enter or remain in a liquor store or a part of a licensed establishment where they are not permitted; to have liquor in their possession; or to provide false or altered identification as a means to gain access to a licensed establishment. SECTION 10 – MINORS Page 1 Liquor Licensing Policy Manual These prohibitions do not apply to minors that are employed or contracted by the police or general manager to test licensees’ compliance, while the minor is so employed or contracted and is supervised by a peace officer or branch employee. [Liquor Control and Licensing Act, section 34] 10.1.2. Prohibition on Serving Minors Licensees are prohibited from selling, giving or supplying liquor to minors, and may not permit a minor to consume liquor in a licensed establishment. [Liquor Control and Licensing Act, section 33] 10.1.3. Minors in possession of liquor A licensee must not allow a minor to have liquor in his or her possession in the licensed establishment, unless the licence issued for that establishment is: a food primary licence, or a liquor primary licence for a stadium and the minor is working as a server in the establishment. The terms and conditions under which a minor is permitted to serve liquor in a food primary establishment or a liquor primary stadium are detailed in policy 10.2.1. Minors may not serve or possess liquor at a catered or residential event. [Liquor Control and Licensing Act, section 33; Liquor Control and Licensing Regulation, section 45(4)] 10.1.4. Identification of minors A licensee must not sell or serve liquor to a minor or permit a minor to enter, or remain in, a licensed establishment in which the presence of minors is restricted. Licensees must ask for two pieces of identification when verifying a patron’s age. The pieces of identification must include one of the following: a passport a driver’s licence that displays a photograph and the date of birth of the holder, or an identification card, issued by a government agency, that displays a photograph and the date of birth of the holder and one other piece of identification that displays at least an imprint of the person’s name and their signature, or an imprint of the person’s name and their picture. Licensees must provide an area that is well lit and protected from entertainment noise for staff to properly review both the identification and the patron, and to ask appropriate questions to test the authenticity of the identification. Identification that is clearly false should, if possible, be confiscated by the licensee, and retained for collection by a liquor inspector. For further information, please refer to section 12 of the Compliance and Enforcement Policy and Procedures Reference Manual. [Liquor Control and Licensing Act, section 33(5); Liquor Control and Licensing Regulation, section 45(1); Liquor Control and Licensing Branch Policy] SECTION 10 – MINORS Page 2 Liquor Licensing Policy Manual 10.2 Minors as Employees and Entertainers Policy Rationale Minors are excluded by policy from being employees in most liquor primary establishments, because of the difficulties their presence would pose for licensees in making sure they do not consume liquor.1 This risk is considered to be less apparent in restaurants; therefore, under age restaurant employees are permitted to serve but not dispense or mix drinks. Most licence categories allow the presence of minors who are entertainers. The policy on minors as entertainers is created to ensure that: minors are not supplied liquor minors do not possess or consume liquor the licensee and staff are able to adequately supervise the conduct of minors, and minors will not be exposed to inappropriate conduct or activities. For example, because of the difficulty of adequately supervising the conduct of minors and the opportunities they may have to consume liquor, minor entertainers at establishments that restrict minors must remain in the licensed area only during their performances. Similarly, they are not allowed to be involved in patron participation contests because some contests (such as dance contests) would make it difficult to observe their behaviour, and others (particularly adult-oriented contests such as “bare as you dare”) are considered inappropriate activities for minors. Policies 10.2.1. Employment of minors in licensed establishments Minors may only be employed as regular or salaried staff of the licensed establishment or as staff of a contracted agency providing services on an ongoing basis at: 1 2 food primary establishments; the business location of a caterer that holds a catering licence (see section 14.6); the site of a catered event or a residential event (see section 14.6); UBrew/UVin establishments (see section 18.6); stadiums; unlicensed areas of the following establishments, if minors are allowed by the general manager to be in the establishment (see section 10.3.5); o concert hall, o movie theatre, o convention centre, o train, o aircraft, o motor vessel, o airport, or o any other establishment the primary purpose of which is not the service of liquor, or establishments in which they are employed or retained as entertainers. 2 A general exception to this policy is the employment of minors as entertainers, which is discussed in the next section. See related policy in 10.2.2. SECTION 10 – MINORS Page 3 Liquor Licensing Policy Manual Minors 16 years of age and over may be employed in food primary establishments and liquor primary stadiums to serve opened bottles of liquor and mixed drinks, provided: they are not permitted to mix beverage alcohol or open bottles at the liquor service bar; an adult employee is available at all times to supervise and to dispense or otherwise provide the liquor to the serving minor; the supervising adult periodically checks patrons to ensure that underage staff are not serving liquor to minors or intoxicated patrons; and minors are not employed as hawkers at stadiums. [Liquor Control and Licensing Act, sections 12(3)(d), and 35; Liquor Control and Licensing Regulation, sections 9(a), 11(2)(a), 13.05(3), 18(4)(b), and 45(4); Liquor Control and Licensing Branch Policy] 10.2.2. Conditions for minors providing entertainment in licensed establishments Minors are permitted in licensed establishments as entertainers under the following conditions: the establishment allows entertainment; if they are otherwise not permitted in the establishment, minors may not remain in the licensed establishment, prior to, during intermissions, or after completion of the entertainment; minors may remain in a manufacturer lounge or special event area prior to, during intermissions or after completion of the entertainment if accompanied by a parent or guardian; minors may not be involved in patron participation contests in establishments that restrict minors; adult entertainment (see 11.5.1) may not include minors, nor may such entertainment occur while minors are within the establishment; Minors are not permitted if any gaming (gambling) activity takes place, with the exception of ticket raffles licensed under the Gaming Control Act or the sale of B.C. lottery products; and such other terms and conditions as may be imposed by the general manager in the public interest, and to ensure the proper conduct and operation of licensed establishments. [Liquor Control and Licensing Act, sections 12(3)(d), 35; Liquor Control and Licensing Regulation, sections 9(a)(i), 11(2)(a), 13.05(3), 18(4)(b), and 18.1(5), ; Liquor Control and Licensing Branch Policy] 10.3 Minors in Licensed Establishments Policy Rationale The Act and Regulation specify when minors may be in a licensed establishment. Minors are permitted in liquor primary establishments only on an exception basis, and only when it can be demonstrated that it is in the public interest to do so. An important distinction is made here between demonstrating that it is in the public interest rather than not contrary to the public interest. The licensee must demonstrate that some benefit accrues from permitting minors in the establishment — not simply show that there is no harm in doing so. In addition, the general manager will consider factors relating to the effective management and control of the establishment when determining whether or not to endorse a licence to permit minors. The general manager must be satisfied that licensees can meet the requirements of their liquor licence. The characteristics of the establishment – the types of activities taking place (whether they are appropriate for minors to observe) and its physical layout (the ability of staff to ensure minors are not consuming liquor) - have a considerable impact on whether minors will be permitted and under what circumstances. For example, an establishment that focuses on meal service will present fewer concerns than an establishment that focuses on late night, adult oriented entertainment. Similarly, Branch policy recognizes it is in the greater public interest to allow families traveling through airports to stay together and therefore permits minors to accompany a parent or legal guardian in an airport establishment that caters to short visits by travelling patrons. SECTION 10 – MINORS Page 4 Liquor Licensing Policy Manual In addition to the regulatory exceptions described below, there are a number of policy exceptions in which minors are permitted by the general manager in certain types of licensed liquor primary establishments or under certain circumstances. The policies below outline the specific circumstances under which these exceptions apply. Policies 10.3.1. Authority of the general manager to specify where minors are permitted The general manager may impose terms and conditions in the public interest (within the parameters of the Act and Regulation) that designate the areas within an establishment where minors are permitted. [Liquor Control and Licensing Act, section 12(3)(d)] 10.3.2. General conditions respecting minors on licensed premises Minors are not permitted in licensed establishments, except: as set out in: o section 10.3.3 (food primary establishments); o sections 10.3.5 or 7.7 (liquor primary establishments); o section 17.16 (manufacturers); o section 14.6 (caterers); o section 15.5.3 (licensee retail stores); o section 16.8.6 (wine stores); or o section 18.6 (UBrew/UVin establishments); when alternate use of the establishment is permitted for unlicensed events or activities prior to licensed hours; when the licence has been temporarily suspended for unlicensed events or activities3; or with lawful excuse. [Liquor Control and Licensing Act, sections 12(3)(d), and 35; Liquor Control and Licensing Regulation, sections 9(a), 11(2)(a), 13.05(3), 14(1)(c), 18(4), and 18.1(5); Liquor Control and Licensing Branch Policy] 10.3.3. Minors as patrons in food primary licensed establishments Minors are permitted, and may not be excluded, as non-drinking patrons in a food primary licensed establishment. Minors are permitted in a food primary lounge when accompanied by an adult and when crossing a food primary lounge from a principal dining area to access the washrooms. [Liquor Control and Licensing Act, sections 12(3)(d), and 35; Liquor Control and Licensing Regulation, section 11(2)(a); Liquor Control and Licensing Branch Policy] 10.3.4. Factors considered in permitting minors in liquor primary establishments In determining whether to grant approval to permit minors in a liquor primary establishment, the general manager may consider: 3 whether minors should be present without restriction; the necessary degree of adult supervision; See related policy in 5.3 Alternate Use. SECTION 10 – MINORS Page 5 Liquor Licensing Policy Manual whether the physical layout and the activities taking place permit staff to supervise the conduct of patrons to ensure that minors are not consuming liquor; whether the activities themselves appropriate for minors to observe; and such other factors as may be relevant to the public interest and to ensuring the proper conduct and operation of the licensed establishment. [Liquor Control and Licensing Act, sections 12(3)(d), and 35; Liquor Control and Licensing Regulations, section 9(a); Liquor Control and Licensing Branch Policy] 10.3.5. Minors in liquor primary licensed establishments Minors are permitted in a liquor primary establishment where: they are employed or retained as entertainers to entertain in the establishment, 4 they are allowed to be in the establishment by the general manager in the public interest (see 10.3.5.1), or the primary purpose of the establishment is not the service of liquor and minors are allowed by the general manager to be in the establishment (see 10.3.5.2). When minors are permitted in liquor primary establishments, adult entertainment is not allowed (see 11.5.1) and no gaming (gambling) activity is allowed, with the exception of ticket raffles licensed under the Gaming Control Act or the sale of B.C. lottery products. [Liquor Control and Licensing Act, sections 35; Liquor Control and Licensing Regulation, section 9(a); Liquor Control and Licensing Branch Policy] 10.3.5.1 Minors Permitted in the Public Interest Where authorized by the general manager, the terms and conditions under which minors may be permitted in a liquor primary establishment or in designated areas of a liquor primary establishment will be noted on the licence. The general manager may determine that it is in the public interest to allow minors in the following establishments under the conditions specified: Ski Hills – see section 7.7.11; Airports the establishment is in an airport and caters to travellers, and the minor is accompanied by a parent or legal guardian; Liquor Primary Clubs 4 minors are in an unlicensed area of a liquor primary club for special events, such as a wedding or birthday party; no other suitable area is available in a liquor primary club and the general manager has approved a temporary change application to permit minors in the licensed area for a special occasion, if o a full sit down meal is provided, and o minors are accompanied by a parent or legal guardian; they are in attendance at special banquet activities or other types of award ceremonies held in a licensed area of a liquor primary club, provided: o only minors who were competitors in the associated event may attend o minors must be accompanied by a parent or guardian See related policy in 10.2 Minors as Employees and Entertainers. SECTION 10 – MINORS Page 6 Liquor Licensing Policy Manual o minors will only be allowed to attend during the full sit-down meal and award ceremonies o minors must leave at the end of the meal and related ceremony. the establishment is a member in good standing of the Royal Canadian Legion, on Remembrance Day, during liquor service hours; Military Mess the establishment is a military mess located on a ship; the mess is land-based and the event is sponsored by the military or a member of the mess; or the minor is a full member of the mess; Other the licensee can establish, to the satisfaction of the general manager, that it is in the public interest to permit minors in the establishment. [Liquor Control and Licensing Act, section 35; Liquor Control and Licensing Regulation, section 9(a)(ii), Liquor Control and Licensing Branch Policy] 10.3.5.2 Establishments that do not serve liquor as their primary purpose Where authorized by the general manager, the terms and conditions under which minors may be permitted in a liquor primary establishment or in designated areas of a liquor primary establishment will be noted on the licence. The general manager may permit minors in the following establishments that do not serve liquor as their primary purpose, on the specified conditions: Concert Halls and Movie Theatres – see section 7.7 and 7.7.12; Convention Centres – see section 7.7; Stadiums and Arenas – see section 7.7, 7.7.6 and 7.7.9; Golf Courses – see section 7.7; Bowling Alleys – see section 7.7; Trains, Aircraft and Motor Vessels minors are permitted in licensed areas of trains, aircrafts or motor vessels; Recreation Facilities the establishment is a liquor primary lounge of a curling club, golf course facility, recreation centre or stadium – see section 7.7; special banquet activities or award ceremonies held in a licensed area of a recreation centre – see section 7.7; Other the establishment is not primarily engaged in the service of liquor and the licensee can establish: o it was built for a purpose other than beverage service; o the business for which the establishment was created could function and be viable without liquor; o whether the patron will pay a cost to be in the facility (such as through the purchase of an all-inclusive ticket or one to see a show or to travel); and o patronage is mainly for a purpose other than the consumption of liquor or participation in entertainment activities related to the consumption of liquor. SECTION 10 – MINORS Page 7 Liquor Licensing Policy Manual [Liquor Control and Licensing Act, section 35; Liquor Control and Licensing Regulation, section 9(a)(iii), Liquor Control and Licensing Branch Policy] SECTION 10 – MINORS Page 8 Liquor Licensing Policy Manual SECTION 11: Entertainment 11.0 Introduction This chapter covers topics relating to the types of entertainment that may be provided in licensed establishments. A number of principles lie behind entertainment policies: the notion that entertainment should be compatible with the category of liquor licence held by the establishment; that entertainment may affect a licensee’s ability to manage and control what takes place in the establishment; that some activities pose risks to public safety when combined with alcohol consumption; and that entertainment in licensed establishments may have impacts upon the local community. Discussion of these and related topics is presented in this chapter under the headings: General Conditions Audio, Film, Video and Television Contests and Tournaments Gaming (gambling) Adult Entertainment Entertainment in Liquor Primary Establishments Entertainment in Food Primary Establishments For entertainment requirements specific to caterers, please see Section 14.8.8. For entertainment requirements specific to licensee retail stores, please see Section 15.5.8. For entertainment requirements specific to wine stores, please see Section 16.8.4. For entertainment requirements specific to manufacturers, please see Section 17. 11.1 General Conditions Policy Rationale The general manager’s policy direction in this area focuses on four key issues. One issue is the extent to which the entertainment is compatible with a particular category of licence. For example, the entertainment provided in a restaurant should not make it indistinguishable from a liquor primary establishment. The food primary licensing process and licence terms and conditions were not designed to evaluate entertainment that may be suitable for liquor primary establishments. There is less input by the local community at the time of licensing a food primary because the focus is on food service, and the local community is generally not affected by noise and nuisance factors beyond those managed through the normal zoning and bylaw processes in place in the community. Entertainment decisions must also consider the extent to which the entertainment may affect the licensee’s ability to maintain effective management and control of the establishment. For example, if the entertainment uses part of the licensed area, the licensee is responsible for ensuring that patrons will not be so crowded together that staff will be unable to observe and control their conduct. The physical safety of staff, performers and patrons is another factor. Activities that might be considered safe in other settings may not be considered safe in an environment where alcohol is being consumed because of the effects of alcohol on mental acuity, physical dexterity and judgment. For this reason, then, entertainment such as contact sports may be permitted only when there is no patron participation; and then only if the licensee can demonstrate that there are adequate safety measures in place to protect anyone playing, watching, or otherwise present during the sports presentation. Finally, decisions regarding entertainment must consider noise, nuisance and other negative impacts on nearby residents and businesses. SECTION 11 – ENTERTAINMENT Page 1 Liquor Licensing Policy Manual Specific rules apply to entertainment when minors are permitted in an establishment as non-drinking patrons and entertainers. These policies are discussed in Section 10. Specific rules apply to employees who provide entertainment – see Section 8.2. Policies 11.1.1. Authority to approve, prohibit, restrict or limit entertainment in a licensed establishment The general manager may impose a licence term or condition that approves, prohibits, restricts or limits any type or form of game or entertainment in a licensed establishment. A municipality, regional district, local government, or First Nation may pass a bylaw restricting or prohibiting the type of entertainment or games in a licensed establishment. [Liquor Control and Licensing Act, sections 12(3)(e) and 50; Liquor Control and Licensing Regulation, section 46(1) and (3)] 11.1.2. Factors considered in imposing terms and conditions for entertainment and games In determining whether to impose a licence condition restricting or limiting a type or form of entertainment or games under policy 11.1.1, the general manager may consider: the compatibility of the entertainment with the class or category of liquor licence held by the establishment, and specifically: o if in respect of any licensed venue where minors may be present, whether the entertainment is adult-oriented (not suitable for minors - see 11.5.1); o if in respect of a food primary establishment, whether the entertainment or games provided would result in a shift in focus away from the service of food during all hours of the establishment’s operation; or o if in respect of a liquor primary establishment, whether the entertainment or games provided would result in a shift in focus to that of a video games arcade; any impact on the licensee’s ability to maintain effective management and control of the establishment; the nature of the entertainment and whether the hours of sale during which the entertainment is offered should be restricted; the health and physical safety of the public, staff, performers and patrons; noise, nuisance and other negative impacts on nearby residents and businesses; and any other factor that may be relevant in the public interest. [Liquor Control and Licensing Act, sections 12(3)(e) and 50(2); Liquor Control and Licensing Regulation, section 46; Liquor Control and Licensing Branch Policy] 11.1.3. General Requirements for Entertainment and Games If a licensee is permitted entertainment and games, the following general rules apply: 1 a cover charge for entertainment is permitted; games of chance, including card games, are permitted for amusement only; payoffs or prizes of any kind are not permitted; 1 Some licence classes have additional restrictions, see 11.6.2 for food primary licences, 11.7.1 for liquor primary licences, 17.20.9 for manufacturers and manufacturer on-site retail stores, 14.8.8 for caterers, section 15 for licensee retail stores, and section 16 for wine stores. SECTION 11 – ENTERTAINMENT Page 2 Liquor Licensing Policy Manual computers that offer internet access, video arcade games, games of skill such as darts, billiards or foosball, and board or card games such as cribbage are permitted; entertainment, games, or activities that may jeopardize performer, patron or public safety must not be offered or condoned; all forms of entertainment must comply with applicable provisions of the Public Health Act and the Fire Services Act; and prize-fighting, kick-boxing, and other contact sports may be approved when there is no patron participation, and where the licensee can demonstrate that adequate safeguards are in place to protect patrons, staff, and the public. [Liquor Control and Licensing Act, sections 12(3)(e) and 50(2); Liquor Control and Licensing Regulation, section 46(4); Liquor Control and Licensing Branch Policy] 11.1.4 Rules for Professional Entertainers An intoxicated entertainer must not be allowed into a licensed establishment. Professional entertainers may consume liquor in the establishment but may not become intoxicated. If an entertainer becomes intoxicated they must be refused service, removed from the premises and the licensee must see that they depart safely from the establishment. [Liquor Control and Licensing Act, sections 43; Liquor Control and Licensing Branch Policy] 11.1.5. Performances involving animals No mammals, reptiles, birds or other animals are permitted in a performance or as entertainment in a licensed establishment, except as approved by the general manager. [Liquor Control and Licensing Act, sections 12(3)(e) and 50(2); Liquor Control and Licensing Branch Policy] 11.2 Audio, Film, Video and Television Policy Rationale Audio, film, video and television entertainment includes any entertainment involving the use of sound equipment, a screen, or a video monitor with the exception of karaoke, games, and gaming.2 Video and television broadcast policies also apply to new technologies, such as interactive video and broadcasts, and Internet applications. The following policies are not intended to address the appropriateness of the activity itself, but the concerns arising when the activity is combined with the consumption of liquor. Policies 11.2.1. Audio, film, video and television presentations If a licensee is permitted audio, film, video and television presentations, the following conditions apply: 2 radio and television broadcasts, and recorded music, are permitted; live radio or television may be broadcast from within the establishment, provided the purpose of the broadcast is not the promotion of liquor; if minors are permitted in the establishment, all audio, film, video and television presentations must be suitable for both minors and adults; for adult-oriented presentations, a sign is posted in a prominent position at the entrance to the licensed establishment advising the public of the type of entertainment being provided; Karaoke is discussed in section 11.6. Gaming (gambling) which uses video display equipment is covered by section 11.4. SECTION 11 – ENTERTAINMENT Page 3 Liquor Licensing Policy Manual all film and video presentations must comply with the Motion Picture Act and Regulations, and require a licence from the Film Classification Branch; and the licensee must comply with any additional conditions imposed by the general manager in the public interest. [Liquor Control and Licensing Act, sections 12(3)(e), 49(4) and 50(2); Liquor Control and Licensing Regulation, section 46(1); Motion Picture Act Regulations, section 8; Liquor Control and Licensing Branch Policy] 11.3 Contests and Tournaments Policy Rationale Gambling or gaming involving a prize or the opportunity of pay-off for the winners are discussed under “Gaming (Gambling)” in section 11.4. Policies on contests and tournaments serve a number of purposes. First, it helps to ensure that licensees and manufacturers run contests and tournaments that are fair and benefit the customers rather than the licensee. It also safeguards against over-crowding and over-consumption by prohibiting consumption as part of the event or drink purchases as a condition of entry, and by stipulating that the winner need not be present in order to win. By not permitting liquor to be given as a prize, the policy also ensures that the event does not lead to inducement activity, which is prohibited in section 45 of the Act. Policies 11.3.1. Licensee contests in licensed establishments If a licensee is permitted to hold contests, the following conditions apply: drink or other purchases are not a condition of contest entry; an entry fee is not charged; liquor is not offered or given as a prize; events do not involve the consumption of liquor; events do not involve a contact sport; a winner does not need to be present in order to be eligible for any prizes or awards; licensees may include contest entry forms in print ads or may mention where entry forms are available in any advertising; licensees, their employees, and their immediate family members are not eligible to enter or win a contest; and the licensee must comply with any additional conditions imposed by the general manager in the public interest. [Liquor Control and Licensing Act, sections 12(3)(e) and 50(2); Liquor Control and Licensing Regulation, section 57; Liquor Control and Licensing Branch Policy] 11.3.2. Liquor manufacturer contests in licensed establishments If a licensee is permitted to allow contests held by liquor manufacturers or their agents, the following conditions apply: the manufacturer/agent must follow the Liquor Distribution Branch guidelines outlined in the In-Store Marketing Programs booklet; the manufacturer/agent must conduct the contest, install all promotional items, and remove all promotional items within 10 days after the contest has ended; the manufacturer/agent must record the name of anyone who wins a prize valued at over $100.00; the rules pertaining to licensee relationships with manufacturers, described in section 12, apply; SECTION 11 – ENTERTAINMENT Page 4 Liquor Licensing Policy Manual licensees, manufacturers, their employees, employees of the Liquor Distribution Branch or Liquor Control and Licensing Branch, and immediate family members of anyone in these groups are not eligible to enter or win a contest; and the licensee must comply with any additional conditions imposed by the general manager in the public interest. For information on liquor manufacturer contests in licensee retail stores, please see s. 15.7. For information on liquor manufacturer contests in wine stores, please see s. 16.10. [Liquor Control and Licensing Act, sections 12(3)(e) and 50(2); Liquor Control and Licensing Regulation, sections 50.1 and 57; Liquor Control and Licensing Branch Policy] 11.3.3. Tournaments Tournaments are distinguished from contests by the requirement for a certain degree of physical exertion and skill. If a licensee is permitted to offer tournaments on their premises, there must be no manufacturer involvement. The licensee may permit a manufacturer to sponsor a tournament outside the licensed establishment. The following conditions apply to licensee-hosted onsite tournaments and manufacturer-sponsored offsite tournaments: drink or other purchases are not a condition of tournament entry; entry fees may be charged; prizes, including money, anything of value or an opportunity to win may be offered; liquor is not offered or given as a prize; events do not involve the consumption of liquor; events do not involve a contact sport; a winner does not need to be present in order to be eligible for any prizes or awards; manufacturers and licensees may include tournament entry forms in print ads, and may mention where entry forms are available in any advertising; licensees, their employees, and their immediate family members are not eligible to enter or win a tournament; and the licensee must comply with any additional conditions imposed by the general manager in the public interest. [Liquor Control and Licensing Act, sections 12(3)(e) and 50(2); Liquor Control and Licensing Regulation, sections 57; Liquor Control and Licensing Branch Policy] 11.4 Gaming (gambling) Policy Rationale The Gaming Policy and Enforcement Branch regulates all aspects of the gaming (gambling) industry. Its mandate includes developing and managing gaming policy, legislation and standards in British Columbia, issuing licences permitting gaming (gambling), investigating alleged contraventions of the Gaming Control Act and, in cooperation with law enforcement, investigating alleged offences of relevant sections of the Criminal Code. 11.5 Adult Entertainment Policy Rationale Exotic dancing and other adult-oriented performances and activities are not permitted in food primary establishments and other licensed establishments where minors are permitted, because these activities are not appropriate for viewing by minors. Strip shows, exotic dancing and other adult-oriented SECTION 11 – ENTERTAINMENT Page 5 Liquor Licensing Policy Manual performances and activities are also prohibited in liquor primary establishments that are unable to prevent a line of sight between the licensed area and another licensed or unlicensed area in which minors may be present. Other restrictions placed on these shows and activities are related to concerns about the licensee’s ability to maintain effective management and control of the establishment during these performances, and to health and safety concerns for staff, performers and patrons. These restrictions are not a commentary on the suitability of these activities in settings where liquor is not being consumed. Rather, the concern is that the combination of liquor consumption and these particular activities can produce a volatile mix that may be harmful to performers, patrons and the larger community. Policies 11.5.1. Definitions of adult entertainment Adult entertainment includes: exotic dancers – entertainers who remove clothing during a performance and/or perform in a sexually suggestive manner; adult oriented performers – entertainers who present dramatic, musical, artistic, comedic or any other types of performances not suitable for viewing by minors characterized by nudity, actual or simulated sexual content, actual or simulated violence and/or abusive, hateful or obscene language; and adult-oriented activities – activities not suitable for viewing by minors characterized by full or partial nudity, actual or simulated sexual content and/or actual or simulated violence, degradation or abuse. Belly dancing, unless performed completely or partially nude, is not adult entertainment. [Liquor Control and Licensing Branch Policy] 11.5.2. General conditions for adult entertainment If a licensee is permitted to offer adult entertainment, the following conditions apply: 3 performers must be at least nineteen years of age; performers must wear appropriate clothing while walking through the audience, both before and after performances. This clothing may be part of their stage costume, however the clothing must provide coverage of the entertainer’s breasts and genitalia; performers may not act as servers or hold any other employment position in an establishment while working in their role as entertainers. However, when individuals are not working in their role as an entertainer, they may be employed as servers or hold other positions of employment in an establishment and this may occur during the same shift; if an entertainer holds another employment position in the establishment, they must change out of their entertainer clothing and into clothing typical for the position they are tasked with prior to starting that position; servers must be clothed and may not combine the role of server with exotic dancing or adult-oriented performing at the patrons’ tables or any other type of adult-oriented entertainment; the performance must take place in an approved area of the licensed establishment; separation between the licensed area and another licensed or unlicensed area in which minors may be present must be sufficient to prevent a line of sight between the two areas3; all licensed establishments that intend to provide exotic dancing or adult-oriented entertainment are required to install surveillance cameras in all private show/VIP booths; and such other conditions as may be specified by the general manager in the public interest. See policies regarding the separation between these areas in 6.5 Adjoining Licensed and Unlicensed Areas. SECTION 11 – ENTERTAINMENT Page 6 Liquor Licensing Policy Manual [Liquor Control and Licensing Act, sections 12(3)(e) and 50(2); Liquor Control and Licensing Regulation, section 46(4); Liquor Control and Licensing Branch Policy] 11.5.3. Prohibited acts during the performance of an exotic dancer or other adultoriented performer Consistent with the considerations specified in policy 11.1.2, the following acts are prohibited during the performance of an exotic dancer and/or adult-oriented performer: live sex acts; realistic and simulated sex acts; insertion of any object into the anus or vagina; extraction of any object from the anus or vagina; urination or defecation; acts which involve coercion or violence, simulated or real; audience or staff/licensee participation, including touching, sharing food or beverages or passing objects between the dancer/adult-oriented performer and members of the audience. Tipping and the distribution of promotional material are permitted provided there is no physical contact between the performers and each other or with an audience member; the deliberate engagement of a patron or staff member/licensee by an adult-oriented performer to participate in an adult-oriented performance or activity; dancing or performing on table tops or other areas beyond the approved areas; touching or sharing food between performers; and such other acts as may be identified by the general manager. [Liquor Control and Licensing Act, sections 12(3)(e) and 50(2); Liquor Control and Licensing Regulation, section 46(4); Liquor Control and Licensing Branch Policy] 11.5.5. Sign describing adult entertainment If adult entertainment is provided by a licensed establishment, signage must be posted at the entrance of the establishment clearly describing the nature of the adult entertainment. [Liquor Control and Licensing Act, section 49(4)] 11.6 Entertainment in Food Primary Establishments Policy Rationale Food primary licensees must be able to ensure that entertainment provided does not shift the focus away from the service of food at all times, and ensure that minors do not consume liquor. Gaming (gambling), except for ticket raffles, is prohibited in food primary establishments because these activities are considered to be incompatible with the primary operating purpose of food service. Entertainment that invites patron participation can have a greater impact on the licensee’s ability to manage and control activity in the establishment than some other types of entertainment. In particular, if not properly regulated, patron participation entertainment can affect the licensee’s ability to observe patron conduct. Patron participation entertainment is outside the normal terms and conditions of a food primary licence, and outside the routine steps established to assess their impacts during the application process. To ensure that community concerns about noise, nuisance and other impacts are considered, input from local government or First Nation authorities is required before patron participation entertainment will be approved for a food primary licensed restaurant. In contrast, the community input process is built in as a normal part of the approval process for liquor primary establishments and manufacturer lounge or special event areas. Also, the terms and conditions that apply to liquor primary establishments help to safeguard SECTION 11 – ENTERTAINMENT Page 7 Liquor Licensing Policy Manual against public safety and community standards issues that arise when entertainment is combined with alcohol consumption.4 The general manager will want to consider any structural alterations necessary to introduce a new form of patron participation or non-participation entertainment.5 In particular, the alterations should not hinder the ability of staff to observe and supervise patron conduct. Karaoke box style restaurants present particular challenges for licensees to observe and monitor patron conduct. The policy has also been designed to ensure that karaoke equipment is not used to provide other forms of entertainment in the restaurant, to preserve the primary focus on food service that is required under sections 11(1) and 46(2) of the Liquor Control and Licensing Regulations. Policies 11.6.1 Allowable Entertainment in Food Primary Establishments Food Primary establishments may have the following types of entertainment: games and entertainment described in 11.1.3, except as described 11.6.2 below; audio, films, video and television, in accordance with 11.5; a contest or tournament, if it complies with the requirements of section 11.3; ticket raffles licensed by the Gaming Policy and Enforcement Branch; and patron participation and patron non-participation entertainment, in accordance with 11.6.3-11.6.7. [Liquor Control and Licensing Act, sections 12(3)(e) and 50(2); Liquor Control and Licensing Regulation, section 46; Liquor Control and Licensing Branch Policy] 11.6.2. Restrictions on entertainment and games in food primary licensed establishments The following conditions and restrictions on entertainment and games apply to food primary establishments: computers that offer internet access, and board or card games such as cribbage are permitted, provided: o they do not alter the primary focus on the service of food, and o they can be played while the customers are seated; games offered in a food primary establishment must not shift the focus of the establishment away from the service of food during all hours of the establishment’s operation; games that require the patron to get up from the table and which are likely to shift the primary focus of the establishment away from the service of food are not permitted in the licensed area, including: darts, shuffleboard, foosball, billiards, pool, video arcade style games, basket ball, ice or roller hockey, curling, and bowling; these and other stand-up games may be offered in an unlicensed area next to the food primary establishment, provided the two areas are properly separated;6 prize-fighting, kick-boxing, and other contact sports are not permitted; gaming, other than ticket raffles, is not permitted; and adult entertainment7 is not permitted. [Liquor Control and Licensing Act, sections 12(3)(e) and 50(2); Liquor Control and Licensing Regulation, section 46; Liquor Control and Licensing Branch Policy] 4 See relevant discussions in the sections dealing with Hours of Operation (section 5) and Liquor Service and Sales (section 7). The licensee may be required to submit an application for a structural alteration. See related information and policies under 6.2 Structural Alterations. 6 See policies regarding the separation between these areas in 6.5 Adjoining Licensed and Unlicensed Areas. 7 Adult entertainment is described in 11.5.1. 5 SECTION 11 – ENTERTAINMENT Page 8 Liquor Licensing Policy Manual 11.6.3. Definitions of patron participation and non-participation entertainment For the purposes of policies on patron participation and non-participation entertainment in food primary establishments: patron participation entertainment is any form of live entertainment, other than games, that entails the active involvement of patrons or results in patrons leaving their seats, including but not limited to: o sing-alongs or karaoke, o dancing, and o “amateur nights”, in which patrons are invited to sing, dance or perform stand-up comedy routines. patron non-participation entertainment is any form of live entertainment that does not entail the active involvement of patrons or result in patrons leaving their seats, including but not limited to: o live music or DJs, and o stage performances. Patron participation and patron non-participation entertainment do not include: o games that are entirely patron initiated, such as cards or board games, or o recorded or broadcast entertainment, including recorded music, radio, film, video, and television.8 [Liquor Control and Licensing Branch Policy] 11.6.4 Applications for patron participation and patron non-participation entertainment An endorsement is required for patron participation or patron non-participation entertainment. To apply for a patron non-participation endorsement, complete the “Permanent Change to a Liquor Licence” form available on the Branch’s website. To apply for a patron participation endorsement, local government comment is required. See section 3.5 for a description of the application process. An establishment with a licence endorsement for patron participation entertainment is also considered to have an endorsement for patron non-participation entertainment, provided the patron non-participation entertainment ends by midnight. [Liquor Control and Licensing Act, sections 11.3, 15(1); Liquor Control and Licensing Regulation, sections 53(3); Liquor Control and Licensing Branch Policy] 11.6.5. Entertainment hours for patron participation and non-participation entertainment in food primary establishments Unless longer entertainment hours for a food primary establishment have been approved by the general manager: dine and dance, and other forms of patron participation entertainment, must end by 12:00 midnight, and stage entertainment, and other forms of patron non-participation entertainment, must end by 1:00 a.m. However, if a food primary licensee is allowed patron participation entertainment, any patron non-participation entertainment must end by 12:00 midnight. [Liquor Control and Licensing Act, sections 12(3)(c), 12(3)(e), and 50(2); Liquor Control and Licensing Regulation, section 46; Liquor Control and Licensing Branch Policy] 8 Requirements for audio, film, video and television are discussed in section 11.2 SECTION 11 – ENTERTAINMENT Page 9 Liquor Licensing Policy Manual 11.6.6. Applications for karaoke box style restaurants Unless otherwise directed by the general manager, licensing staff may approve applications for food primary establishments with karaoke entertainment in individual rooms or box-style enclosures, provided all regulation and policy requirements have been met. The application must be accompanied by: a resolution from the local government or First Nation supporting the form of entertainment proposed; a description of the proposed operation and furnishings showing that they are consistent with the service of food, and that all furniture is suitable for serving a meal to all persons in the rooms; and building plans showing that clear glass observation windows to be fitted in each karaoke room will: o be free of blinds or curtains, o have a surface area of no less than .3 square meters (3.23 square feet), and o be installed in such a way that there is an unobstructed view of all parts of the room. [Liquor Control and Licensing Act, sections 11.3, 15(1); Liquor Control and Licensing Regulation, sections 53(3); Liquor Control and Licensing Branch Policy] 11.6.7. Conditions for karaoke box style restaurants The following conditions apply to a food primary licensed establishment that has been approved to operate as a karaoke box-style restaurant: the licensee, managers and all servers must be certified under the Responsible Beverage Service Program; the hours of sale of liquor for the establishment as a whole may not exceed 12:00 midnight; all forms of entertainment must cease at 12:00 midnight; doors leading into a karaoke box room may not be fitted with locks or similar devices so that all areas used for dining purposes are accessible to staff and inspection authorities at all times; and karaoke control centres or equipment rooms may not be used as D.J. booths for any dine and dance activity. [Liquor Control and Licensing Act, sections 12(3)(c), 12(3)(e), and 50(2); Liquor Control and Licensing Regulation, section 46; Liquor Control and Licensing Branch Policy] 11.7 Entertainment in Liquor Primary Establishments 11.7.1. Allowable Entertainment at Liquor Primary Establishments Liquor primary establishments may have the following types of entertainment: games and entertainment described in 11.1.3, however, games offered in a liquor primary establishment must not shift the focus of the establishment to that of a video games arcade; audio, films, video and television, in accordance with 11.5; a contest or tournament, if it complies with the requirements of section 11.3; Gaming, in accordance with 11.4 and 11.7.2. If minors are present, the only forms of gaming permissible are ticket raffles and BC Lottery products; and adult entertainment, provided it complies with 11.5 and no minors are present. [Liquor Control and Licensing Act, sections 12(3)(e) and 50(2); Liquor Control and Licensing Regulation, section 46; Liquor Control and Licensing Branch Policy] 11.7.2. Gaming (gambling) in liquor primary establishments Generally, all types of gaming (gambling) which are licensed by the Gaming Policy and Enforcement Branch (GPEB) and the sale of B.C. lottery products are permitted in liquor primary establishments. SECTION 11 – ENTERTAINMENT Page 10 Liquor Licensing Policy Manual Liquor primary establishments may offer pari-mutuel (off track) betting if they have a licence from GPEB. A commercial casino, bingo hall or community gaming centre which is licensed by GPEB and has a liquor primary licence may allow consumption of liquor at the gaming tables if they are within the redlined area. A liquor primary establishment may allow a non–profit community organization to run gaming (gambling) activities in the establishment if the organization has a licence from GPEB. [Liquor Control and Licensing Act, sections 12(3)(e) and 50(2); Liquor Control and Licensing Regulation, section 46; Liquor Control and Licensing Branch Policy] SECTION 11 – ENTERTAINMENT Page 11 Liquor Licensing Policy Manual SECTION 12: Trade Practices 12.0 Introduction This chapter covers relationships between licensees and liquor manufacturers and their agents, commonly referred to as trade practices. Trade practice laws are closely related to the tied house requirements (see section 3.2), and place prohibitions and restrictions on the commercial interactions between liquor suppliers and licensed establishments. The policies in this chapter relate to how liquor manufacturers and their agents can promote their products in licensed establishments and are used to ensure that trade practices between licensees and manufacturers and their agents do not present an opportunity for inducement activity by any party. Two recurring themes in this chapter are that promotional activity must benefit customers rather than licensees, and promotional items must not include liquor. This chapter is organized as follows: General Conditions Promotional Items Consumer Taste Trials Theme Night Promotions, and Manufacturer Hospitality and Educational Activities 12.1 Inducements Policy Rationale Government recognizes that liquor manufacturers/agents and retailers routinely engage in business arrangements and activities that are mutually beneficial to both parties to some extent; however inducements between liquor suppliers and licensees are prohibited. Inducements occur when a licensed establishment promotes specific manufacturers and their products in exchange for benefits provided by the supplier. Unrestricted trade practices such as inducements are likely to lead to certain products being favoured. This restricts consumer choice, could also discourage the growth of small volume liquor manufacturers, and could act as a barrier to new manufacturers wishing to enter the marketplace. Inducements could also have the effect of decreasing costs for licensees, thus resulting in a licensee being able to provide liquor at a lower cost, which might in turn result in overconsumption. Furthermore, the provision of inducements by liquor manufacturers or their agents is most likely to be given to larger volume accounts, thus providing an additional financial advantage to certain licensees over those not receiving inducements. The laws on inducements reflect the belief that licensees who are beholden to manufacturers/agents, or are concerned about meeting commitments to manufacturers/agents, may be less concerned about compliance with the public safety rules prohibiting service to minors, over-service, overcrowding and illicit alcohol. For these reasons, it remains in the public interest for government to continue to regulate trade practices between liquor manufacturers and licensees in liquor retail. Policies 12.1.1 Restrictions on inducements The following restrictions apply to relations between licensees and licensed manufacturers or their agents. The licensee may accept information and ideas to help improve their business, provided the information comes directly from the manufacturer or its agent, and not through an outside consultant. The licensee must not accept advice about borrowing money or locating financing. SECTION 12 – TRADE PRACTICES Page 1 Liquor Licensing Policy Manual The licensee is prohibited from accepting any items, products or services from a manufacturer or its agent that are necessary for the operation of their business. This includes money, credit or other forms of financial assistance, as well as permanent fixtures, furnishings, products, repair costs, draught lines, glassware, games, refrigerators, shelving or permanent display structures. The one exception is that manufacturers/agents may supply plastic cups at stadiums, either with or without their logo. The liquor manufacturer/agent may not rent rooms from a licensee, and then leave them unoccupied for licensees to rent again. In addition to other policies pertaining to advertising contained in Section 13, licensees must pay for their own advertising. With permission from the manufacturer/agent, licensees can include the manufacturer's logo in their ads, but cannot demand or receive financial compensation or other consideration in return. The liquor manufacturer/agent may not pay for or provide entertainment in a licensed establishment other than inexpensive forms of entertainment during theme nights approved under policy 12.4.1. Where a tied house exemption has been approved for a small and medium volume manufacturer and a licensed establishment, the licensee’s business relationship with the associated manufacturer is also exempted from these inducement restrictions (for more information, see section 3.2.5). [Liquor Control and Licensing Act, sections 18 and 45; Liquor Control and Licensing Act Regulations, sections 50.1 and 57; Liquor Control and Licensing Branch Policy] 12.2 Selection of products for sale Licensees must not have any agreement or arrangement to sell the liquor made by a particular liquor manufacturer to the exclusion of that made by other manufacturers. Licensees must carry and make available to consumers a representative selection of brands of liquor products from a variety of manufacturers that are not associated with or connected with each other. This requirement does not apply to: manufacturer on-site establishments (see s. 3.2.5.2); wine stores which are owned and operated by a winery (see s. 3.2.5.3); and stadiums and concert halls (see s. 3.2.5.4). [Liquor Control and Licensing Act, section 6(c)] 12.3 Promotions Policy Rationale The policies relating to promotional items are based on the principles that items provided to a licensee should benefit the customers and not the licensee, should not promote over-consumption, and should not restrict other brands from being made available to the public. For information on promotions and product vouchers in licensee retail stores, please see section 15.8. For information on promotions and product vouchers in wine stores, please see section 16.11. Policies 12.3.1. Promotional Items Licensees may accept promotional items such as coasters, tent cards and posters from liquor manufacturers or their agents, provided: The licensee’s menu already lists the brand of liquor identified in the promotional materials; and It does not appear that the licensee is promoting a particular liquor product or the products of a particular manufacturer. SECTION 12 – TRADE PRACTICES Page 2 Liquor Licensing Policy Manual Licensees may also: Receive on loan from a manufacturer or its agent for a specified period of time promotional items with the manufacturer's name or brand, including: o Signs, patio umbrellas, ceramic draught beer towers, mirrors, menu boards, etc.; and o Temporary display structures and related promotional items provided all displays and promotional items remain the property of the manufacturer and are removed at the end of the period identified in the buy-sell agreement. Accept, free of charge, from a manufacturer or its agent, brand or corporately-identified clothing or novelty items such as t-shirts, hats, key chains, provided the items are given (not sold) to customers nor kept by the licensee for themselves, their staff or future promotions. [Liquor Control and Licensing Regulation, section 50.1(1); Liquor Control and Licensing Branch Policy] 12.3.2. Joint promotional dinners Food-primary licensees may enter into a joint promotion with a liquor manufacturer or its agent to feature a manufacturer's products during a special event, such as a brewmaster dinner. The following conditions apply: The event must include a full meal; Liquor served at the event must be purchased from the licensee’s regular Liquor Distribution Branch liquor store or other designated outlet; The manufacturer or it’s agent must attend the event; The licensee and manufacturer/agent may both advertise the event; and There is no limit on the number of dinners that may be held. [Liquor Control and Licensing Regulation, sections 50.1 and 57; Liquor Control and Licensing Branch Policy] 12.4 Consumer Taste Trials Policy Rationale Breweries, wineries and distilleries are permitted to offer free samples of their various liquor products to visitors during informational tours of their facilities – provided they have a designated sampling room and have received permission from the general manager. Because many manufacturers find it difficult to draw prospective customers to the manufacturing facility and because it is easier to market test and promote products to customers at the retail level, manufacturers may hold taste trials away from the manufacturing location. Liquor manufacturers and their agents can introduce a new liquor product to their customers in a government liquor store or, in a licensee retail store, wine store or food primary licensed restaurant, through a consumer taste trial 1 . In restaurants, liquor consumption is already permitted. Nevertheless, because taste trials have a different focus or purpose than typical liquor consumption in restaurants – that is, liquor served in a promotional context rather than as an accompaniment to a meal – there is a need to provide for it as a separate activity. Moreover, because liquor consumption is already occurring in a licensed restaurant, there is a need to monitor the activity more carefully. F F Overall, these policies have been carefully crafted to ensure that consumer taste trials in retail stores and restaurants are consistent with the broader principles of liquor regulation. Additionally, the policies are intended to address the activity that is an opportunity for liquor manufacturers and licensees to introduce the taste of a product to customers at the point-of-sale rather than an opportunity for drinking. 1 Similar opportunities to introduce new products are available to manufacturers in liquor primary licensed establishments. See related discussion and policies under Theme Night Promotions later in this chapter. SECTION 12 – TRADE PRACTICES Page 3 Liquor Licensing Policy Manual For information on consumer taste trials in licensee retail stores, please see section 15.9. For information on consumer taste trials in wine stores, please see section 16.12 Policies 12.4.1. Objectives of consumer taste trials The general manager may permit free samples of liquor to be offered to customers during consumer taste trials in licensed food primary establishments and retail stores2, provided these taste trials have the objective of: Increasing the level of consumer awareness about product availability; Allowing consumers to taste new products introduced by manufacturers; or Allowing consumers to taste products they may not normally purchase, but that are listed with the Liquor Distribution Branch. [Liquor Control and Licensing Act, section 12(3); Liquor Control and Licensing Regulations, section 14(1)(g); Liquor Control and Licensing Branch Policy] 12.4.2. Conduct of consumer taste trials in restaurants The following conditions apply to the conduct of consumer taste trials in licensed food primary establishments: Food service must be available at all times during the consumer tasting; The manufacturer/agent must be present at all times during the consumer tasting; The product must be handled by the licensee or staff of the establishment in accordance with policy 12.4.5; and Such other conditions as the general manager considers to be appropriate. [Liquor Control and Licensing Act, section 12(3); Liquor Control and Licensing Branch Policy] 12.4.3. Charges and product purchases The following conditions apply to charges assessed and purchases made for consumer taste trials: A licensee may not charge a manufacturer/agent a fee for demonstration space or for conducting the taste trial; Liquor may not be donated by manufacturers for tasting purposes (unless the liquor is donated to a SOL holder for a charitable tasting event) and all liquor products used for consumer tasting must be purchased by the manufacturer/agent from the store’s inventory/restaurant's stock; The price paid by the manufacturer/agent must be no less than the price paid for the product by the store operator or restaurateur and no more than the price normally charged to consumers; and The licensee must issue a countersigned receipt for the dollar value of sampled product to the manufacturer/agent, a copy of which should be retained by both parties for audit purposes. [Liquor Control and Licensing Act, sections 45(1) and 45(2); Liquor Control and Licensing Regulations, section 41(2); Liquor Control and Licensing Branch Policy] 12.4.4. Maximum sample quantities in food primary establishments The free samples are permitted in a food primary provided they are served in plastic glassware, and provided the maximum quantities served to each consumer for each sample at the consumer taste trial do not exceed: 2 Similar opportunities to introduce new products are available to manufacturers in licensed liquor primary establishments. See related discussion and policies under Theme Night Promotions later in this chapter. SECTION 12 – TRADE PRACTICES Page 4 Liquor Licensing Policy Manual Wine Beer/Cider/Coolers Spirits Single Product 30 ml 30 ml 10 ml Multiple Product 45 ml 45 ml 20 ml [Liquor Control and Licensing Act, section 12(3); Liquor Control and Licensing Branch Policy] 12.4.5. Service and management of open liquor Responsible beverage service principles apply during taste trials, including the following: The manufacturer/agent may not serve a minor or a person who is apparently under the influence of alcohol; and The manufacturer/agent may not leave supplies of open liquor unattended at any time. Liquor must be handled as follows: Opened product that has not been tasted must be destroyed at the end of the taste trial, with the exception of spirits and wine in a restaurant, which may be returned to stock; and Unopened product must be returned to the store inventory or restaurant stock and a refund made to the manufacturer/agent at the price paid for the product. [Liquor Control and Licensing Act, sections 12(3), 33(1), and 43(1); Liquor Control and Licensing Branch Policy] 12.4.6. Advertising The general manager may approve advertising material for use with consumer taste trials and the following conditions apply: All point-of-purchase material used to support a manufacturer-hosted consumer taste trial must be provided by the manufacturer/agent; Consumer taste trials may be advertised by the licensee or by the manufacturer; and Such other conditions as the general manager considers to be appropriate. [Liquor Control and Licensing Act, sections 12(3)(j); Liquor Control and Licensing Regulations, sections 57; Liquor Control and Licensing Branch Policy] 12.5 Theme Night Promotions in Liquor Primary Establishments Policy Rationale In the context of theme night promotions, liquor manufacturers are offered an incentive to contribute further to their communities – they may take advantage of a promotional opportunity in exchange for an educational message about drinking in moderation, the consequences of alcohol misuse and abuse, or a message of similar importance to assist the public in understanding the effects of alcohol consumption. Theme night promotions are permitted in licensed liquor primary establishments, except in those establishments that are located on college or university campuses.3 Section 45 of the Liquor Control and Licensing Act prohibits licensees from accepting benefits, either directly or indirectly, in return for promoting a particular brand of liquor. It also specifies that a licensee’s employees may not promote a particular type of liquor. For this reason, the policy on theme night promotions, like the consumer taste trial policy, is crafted to ensure the theme night is a manufacturer, and not a licensee, activity. 3 Theme night promotions are not permitted in food primary licensed restaurants because this activity is deemed to be incompatible with a restaurant’s primary operating purpose of food service; however, restaurants and Licensee Retail Stores are permitted to hold consumer taste trials. See related discussion and policy under Consumer Taste Trials earlier in this chapter. SECTION 12 – TRADE PRACTICES Page 5 Liquor Licensing Policy Manual The licensee is accountable for all that occurs on the premises, so the policy reflects both the specific requirements placed on the licensee during these events, as well as the requirements for manufacturers. The general manager has allowed “theme night promotions” in licensed establishments under strictly controlled circumstances that are similar, in several respects, to the consumer taste trials discussed in the previous section. A fuller appreciation of the rationale for theme night promotions can, therefore, be acquired by reading the policy rationale in that section. Policies 12.5.1. Educational component The general manager may approve a theme night promotion in a licensed liquor primary establishment, provided the event has an educational component promoting: Public awareness of provincial liquor laws and policies; Public awareness about alcohol abuse; Messages related to the consequences of drinking and driving; Industry or corporate sponsored publications or programs featuring responsibility in beverage consumption; or Such other message as may be considered to be in the public interest. [Liquor Control and Licensing Act, section 12(3); Liquor Control and Licensing Regulations, section 50.1; Liquor Control and Licensing Branch Policy] 12.5.2. Service of food and liquor There are no limits on the number of theme nights a liquor manufacturer/licensee can hold, but they are subject to the following conditions: The manufacturer/agent must be in attendance at the establishment during at least part of each function; The offer or invitation to taste the product must be made by the manufacturer/agent and not by the licensee or regular staff of the establishment; Servings of product samples from a separate service counter or bar (or other area set up for that purpose at the discretion of the licensee) must be dispensed by staff provided by the manufacturer/agent; Servings of product samples to patrons at their tables must be dispensed by the licensee or regular staff of the establishment; and The licensee must have food available for patrons at all times during the theme night. [Liquor Control and Licensing Act, sections 12(3); Liquor Control and Licensing Regulations, section 50.1; Liquor Control and Licensing Branch Policy] 12.5.3. Promotional activities permitted The following conditions apply to activities undertaken during a theme night promotion: Liquor manufacturers or their agents and licensees can advertise theme night promotions both on-site and off-site, subject to the advertising requirements (set out in section 13); Liquor manufacturers or their agents may provide inexpensive forms of entertainment during the theme night, such as games; Payment for more expensive forms of entertainment – live performers or DJs, for example – is prohibited unless approved by the general manager; Liquor manufacturers or their agents may run contests in accordance with sections 11.3.1 and 11.3.2 and may present prizes, which may be brand or corporately identified, unless the general manager directs otherwise; SECTION 12 – TRADE PRACTICES Page 6 Liquor Licensing Policy Manual Liquor manufacturers or their agents may provide clothing or novelty items identifying the featured liquor name or brand(s) to be worn by licensees’ employees, and may permit employees to keep the clothing or items after the event; Brand or corporately identified items not distributed by the end of an event must be removed by the agent/manufacturer or given (not sold) to staff and may not be retained by the licensee for themselves or future promotions. [Liquor Control and Licensing Act, sections 12(3)(j) and 52(5); Liquor Control and Licensing Regulations, sections 41(2), 42(2), 46(1), 50.1, 56, and 57; Liquor Control and Licensing Branch Policy] 12.5.4. Charges and product purchases The following conditions apply to the charges and product purchases for a theme night: Liquor may not be brought into an establishment by an agent or any other person, and any liquor provided to patrons by the manufacturer/agent must be purchased from the licensee; Gratuities or tipping by the manufacturer/agent may not exceed 15 per cent; The licensee may not give liquor away free but may establish reasonable special prices for promotions 4; The licensee may charge a corkage fee in addition to the licensee’s purchase cost for products used for sampling purposes; Licensees may not charge the manufacturer/agent a fee for conducting a theme night promotion other than the price of the liquor purchased to conduct the promotion; and The licensee must issue a countersigned receipt for the dollar value of sampled product to the manufacturer/agent, a copy of which should be retained by both parties for audit purposes. F [Liquor Control and Licensing Act, sections 45(1), and 45(2); Liquor Control and Licensing Regulations, sections 41(2) and 50.1; Liquor Control and Licensing Branch Policy] 12.5.5. Maximum sample quantities during theme night promotions Free samples may be served during a theme night promotion provided the samples are served in plastic glassware, and provided the maximum quantities served to each consumer for each sample does not exceed: Single Product Wine Beer/Cider/Cooler Spirits 30 ml 30 ml 10 ml Multiple Product5 45 ml 45 ml 20 ml [Liquor Control and Licensing Act, sections 12(3); Liquor Control and Licensing Regulations, section 50.1; Liquor Control and Licensing Branch Policy] 12.6 Manufacturer Hospitality, Educational Activities Policy Rationale The policies in this section set limits on how liquor manufacturers and their agents may extend hospitality and provide educational activities and sponsorship to licensees in liquor retail. These policies generally follow from the previous sections and are based on the principles outlined in the General Conditions section; that is, unregulated relationships between liquor manufacturers/agents and licensees may lead to 4 See related discussion and policies in the section on Pricing in Chapter 7. Quantities for multiple product tasting apply only where more than one product is being presented at any one time by a single supplier. The quantity for multiple products is a total of all products offered. 5 SECTION 12 – TRADE PRACTICES Page 7 Liquor Licensing Policy Manual certain products being favoured, which restricts consumer choice and is a barrier to new manufacturers wishing to enter the marketplace. The policies below outline legitimate trade practices manufacturers and their agents may undertake to promote their products either to the consumer by means of a licensed establishment, or through the sponsorship of an event, activity, or organization. Policies 12.6.1. Buying Drinks for Patrons The actions of liquor manufacturers and their agents when visiting licensed establishment are restricted. Mass treating or “buying drinks for the house” by a manufacturer/agent is not permitted, and manufacturers/agents may not leave money for this purpose. They may, however, purchase drinks for patrons, provided: The liquor serving provided to each customer at one time is not greater than the normal serving for that establishment; Each order is paid for at the time it is served (the order may be put on a “tab” provided the account is settled before the agent leaves the establishment), and that drink prices are the same as the licensee would charge regular patrons. The manufacturer or agent does not treat more than one table at a time, except where it involves a bona fide sporting team; The licensee issues a countersigned receipt for the dollar value of purchased product to the agent (both parties should retain a copy); and The manufacturer or agent does not bring liquor products into a licensed establishment for the purpose of sampling (unless it is a theme night promotion event arranged according to the policies set out in section 12.4). [Liquor Control and Licensing Act section 45; Liquor Control and Licensing Regulation, section 50.1; Liquor Control and Licensing Branch Policy] 12.6.2. Product Samples Liquor manufacturers and agents may occasionally give product samples to licensees to introduce new products. Only the licensee and staff may consume this product, in a private place outside of the licensed area. Product samples are not intended for patrons of the establishment and must not be purchased or consumed by them. Samples provided by a liquor manufacturer or agent must be recorded in the licensees’ liquor register. Liquor manufacturers and agents must not provide a licensee with more than the following product amounts per year: Distilled spirits – smallest available size per product (total not exceeding 1.14 litres); Wine – smallest available size per product (total not exceeding two litres); and Beer, domestic cider or coolers – one dozen smallest available size bottles or cans (total not exceeding four litres). Notwithstanding the above, if a new wine vintage is released within the same year in which an earlier vintage was provided as a sample, a liquor manufacturer or its agent may provide a sample of the new vintage within the same year. [Liquor Control and Licensing Act section 45; Liquor Control and Licensing Regulation, section 50.1; Liquor Control and Licensing Branch Policy] SECTION 12 – TRADE PRACTICES Page 8 Liquor Licensing Policy Manual 12.6.3. Educational Events and Activities Where the primary purpose of an event or activity is to educate the licensee on a product, a liquor manufacturer or agent may pay legitimate in-province travel, meal, accommodation, and entertainment expenses under the following conditions: Expenses paid must not exceed $1,000 per licensee location per year; Expenses paid for a licensee with multiple licensed establishments must not exceed $1,000 per person to a maximum of $3,000 per licensee head office; and Where the primary purpose or the majority of time spent at the event or activity is entertainment, recreational, or sporting in nature and not educational, it must follow the rules for hospitality in policy 12.5.4. [Liquor Control and Licensing Act section 45; Liquor Control and Licensing Regulation, section 50.1; Liquor Control and Licensing Branch Policy] 12.6.4. Hospitality Liquor manufacturers and agents may engage in hospitality with licensees to a maximum of $1,500 per establishment per year. Additional in-province travel expenses, which are appropriate and related to the event, are also permitted. [Liquor Control and Licensing Act section 45; Liquor Control and Licensing Regulation, section 50.1; Liquor Control and Licensing Branch Policy] 12.7 Sponsorship 12.7.1. Manufacturer sponsorships A manufacturer may sponsor an event, activity, or organization using their corporate name or brand name of the manufacturer’s product. Manufacturer-sponsored events are not generally permitted in licensed establishments due to laws prohibiting tied houses. Manufacturer-sponsored events are permitted at catered events because the sponsorship agreement is not between the caterer and the manufacturer, and the caterer does not directly benefit from the relationship. Manufacturers are permitted to sponsor licensee-associated sports teams, tournaments6 or events held offsite. The sponsored activity may be held at: unlicensed venues; licensed: o sports stadiums o recreational centres (including ski hills, racquet clubs and bowling alleys) o concert halls, or o university or cultural centres; or o associated establishments exempted from the tied house requirements; or catered events. Sponsorship at or with a licensed establishment is not permitted unless the following criteria are met: 6 The sponsored activity is time-limited and not part of an on-going relationship with the licensed establishment or caterer; and The manufacturer or agent has notified the Liquor Control and Licensing Branch, in writing, at least 14 days before any sponsored activity takes place if it involves a licensed establishment. See section 11.3 for conditions that apply to manufacturer-sponsored contests and tournaments. SECTION 12 – TRADE PRACTICES Page 9 Liquor Licensing Policy Manual Sponsorship by manufacturers of events, activities, and organizations in which the participants or audience consist primarily of minors is generally prohibited, unless authorized by the general manager. [Liquor Control and Licensing Act section 54; Liquor Control and Licensing Regulation, sections 50.1 and 60; Liquor Control and Licensing Branch Policy] 12.7.2. Licensed establishment sponsorships A licensed establishment may sponsor an event, activity, or organization using their corporate name or the name of the licensed establishment. The sponsored event or activity may be held at the licensed establishment or offsite at an unlicensed venue or at a catered event: Joint sponsorship with a manufacturer is not permitted unless the following criteria are met: The sponsored activity is time-limited and not part of an on-going relationship with the manufacturer; and The manufacturer or agent has notified the Liquor Control and Licensing Branch, in writing, at least 14 days before any sponsored activity takes place. Sponsoring events aimed at minors is still generally prohibited, although establishments, or catered events in which unaccompanied minors are permitted (such as restaurants) may sponsor minors’ activities, events and organizations without having to apply. [Liquor Control and Licensing Act section 54; Liquor Control and Licensing Regulation, sections 50.1 and 60; Liquor Control and Licensing Branch Policy] SECTION 12 – TRADE PRACTICES Page 10 Liquor Licensing Policy Manual SECTION 13: Advertising and Signage 13.0 Introduction This chapter covers topics that relate to licensee signage and advertising. A recurring theme in this chapter is that no advertising of liquor or of licensed establishments should encourage consumption or irresponsible drinking behaviour, nor should it target minors. These policies are discussed under the heading “General Conditions”. See Also: sections 14.4.8 and 14.4.9, for advertising and signage requirements specific to caterers; section 15.4, for advertising and signage requirements specific to licensee retail stores; section 16.7 for advertising and signage requirements specific to wine stores; Section 18.4 for advertising and signage requirements specific to UBrews/UVins. 13.1 General Conditions Policy Rationale Policies governing advertising have been crafted with public safety principles in mind, primarily that consumption should not be encouraged, and that irresponsible consumption should be prevented. Liquor licensees and manufacturers may advertise their products, but they must comply with Liquor Control and Licensing regulations. The regulations incorporate the Canadian Radio-television and Telecommunications Commission's Code for Broadcast Advertising of Alcoholic Beverages as the advertising code for the province. U Advertising that misleads patrons as to the nature of the establishment is contrary to the public interest. An advertisement or sign for a licensed establishment must reflect the type of class or category of licence the establishment holds. While a liquor primary licensed establishment may use terms such as bar, saloon, cantina or tavern in its name, a food primary licensed restaurant may not use them — except in reference to a lounge in the restaurant — because such terms may confuse the public about the restaurant’s primary function, which is to serve food. Any signs, including signs bearing the name of a licensed establishment, are considered to be advertising and must comply with the advertising terms and conditions outlined in this chapter. Signs must also comply with local government bylaws. The policy for approval of Fetal Alcohol Syndrome (FAS) warning signs is designed to encourage display of signs warning about the risks of consuming alcohol during pregnancy. FAS signs are approved for posting in licensed establishments as long as they comply with municipal bylaws. The policies below specify the nature of the information that may be advertised, as set out in the regulations and as currently approved by the general manager. Policies Revised February 2013 13.1.1. Nature of the information provided The nature of information provided on a sign or advertisement, other than those for caterers, may include: liquor prices, including specials hours of sale featured entertainment or food the kind of liquor and/or specific liquor brands and manufacturers offered SECTION 13 – ADVERTISING AND SIGNAGE Page 1 Liquor Licensing Policy Manual the availability of off-premise sales if the licence is so endorsed For advertising rules for caterers, see section 14.4.8. [Liquor Control and Licensing Act sections 49(3) and 51.1(1); Liquor Control and Licensing Regulation, sections 56 and 57; Liquor Control and Licensing Branch Policy] 13.1.2. Prohibited content for advertisers An advertisement or sign may not: encourage people to drink liquor or to drink irresponsibly show people drinking liquor, or anyone who is either intoxicated or behaving irresponsibly or illegally associate liquor with driving be directed at minors or placed in locations used or visited mostly by minors, such as video arcades, playgrounds, or stadiums that are used primarily for minor sports be shown on a theatre screen before a movie, if the movie being presented is primarily for a young audience promote contests and tournaments involving wet T-shirts, wet jockey shorts, bare-as-you-dare, or similar themes or activities depict liquor as: o one of life's necessities o key to social acceptance or personal success o central to the enjoyment of an activity o a status symbol. [Liquor Control and Licensing Act sections 49(3) and 51.1(1); Liquor Control and Licensing Regulation, sections 56 and 57; Liquor Control and Licensing Branch Policy] 13.1.3. Methods of advertising Licensees may advertise through any medium unless otherwise restricted by the general manager, bylaws of a municipality or regional district or laws of Canada. [Liquor Control and Licensing Act, section 49(3); Liquor Control and Licensing Regulations, sections 56 and 57; Liquor Control and Licensing Branch Policy] 13.1.4. Signs and advertising for food primary lounges In signage or advertising for food primary establishments with lounge endorsements, the word lounge may be used in reference to the lounge. Comparable terms such as bar, cocktail lounge, or cocktail bar may also be used, provided the name does not suggest a class or category of licence not held in respect of the establishment. Signage or advertising must make clear that serving food is the restaurant's primary purpose and may therefore not show people with liquor, unless the people have food in front of them. [Liquor Control and Licensing Act, section 49(3); Liquor Control and Licensing Regulations, sections 56 and 57; Liquor Control and Licensing Policy] 13.1.5. Signs and advertising for liquor primary establishments Signage and advertisements for liquor primary establishments may not use pictures of minors, personalities, images or activities that may appeal to minors. Nor may signs and advertisements show people with liquor, unless the people have food in front of them. SECTION 13 – ADVERTISING AND SIGNAGE Page 2 Liquor Licensing Policy Manual [Liquor Control and Licensing Act, section 49(3); Liquor Control and Licensing Regulations, sections 56 and 57; Liquor Control and Licensing Policy] 13.1.6. Signs displaying Fetal Alcohol Syndrome (FAS) warnings The general manager approves the display of a sign or signs, inside a licensed establishment, informing or warning patrons about the dangers of consuming alcohol during pregnancy, provided the signs: comply with municipal bylaws contain only information about the risk of alcohol consumption during pregnancy. [Liquor Control and Licensing Act, section 49(3); Liquor Control and Licensing Branch Policy] SECTION 13 – ADVERTISING AND SIGNAGE Page 3 Liquor Licensing Policy Manual SECTION 14: Catering Licences and Catering Endorsements 14.0 Introduction This section provides an overview of the legislation, regulations, and policies specific to Catering Licences and Catering Endorsements. A Catering Licence enables catering companies to provide a full range of food and beverage services to their local, out of province or international clients. Licensed Caterers may purchase, transport, and sell liquor, and maintain a liquor inventory. Revised May 2013 A Catering Endorsement enables food primary and liquor primary establishments to cater food for their clients’ events at locations that are primarily off-site. A catering endorsement may not be used to alter the primary focus of the establishment or alter the terms and conditions under which the establishment operates on a day to day basis. The host of a Catered Event is not required to obtain a Special Occasion Licence. Catered Events encompass a wider range of business events than are currently eligible under the Special Occasion Licence program. 14.1 Definitions and Interpretation 14.1.1 Definitions "Business Location" refers to a permanent location housing the Caterer’s commercial kitchen and secure liquor storage. “Caterer” means someone with a Catering Licence or Catering Endorsement. "Catered Event" refers to an event (other than a Residential Event) where the Caterer is hired by the host to sell liquor, and the host invites the guests. Catered Events include: personal events which are invitation only events for family and friends such as a wedding or birthday party corporate events which are business events that typically are invitation only, no admission, and a host bar community events such as a festival, exhibition, sports tournament or concert, or other events such as a political party fundraiser, gallery event or theatre show. "Catering Authorization" refers to the approval granted by a liquor inspector for a Catered Event. “Catering Endorsement” may be added to the licence of a food primary or liquor primary licensee to allow the licensee to sell liquor at Residential and Catered Events. “Event” includes Catered and Residential Events. “Host” refers to the client that hired the Caterer to provide food and liquor at an event. “Occupant Load" means the number of persons, including staff, who may be in licensed premises at one time. The number is calculated by local fire and building officials or other designated professionals, such as architects and engineers. The occupant load calculation must be the lesser of the maximum number of people allowed under provincial regulations or municipal bylaws. "Residence" refers to a private dwelling (where someone lives), and the land surrounding it (see 14.9.1 for further information.) SECTION 14 – CATERING LICENCES AND CATERING ENDORSEMENTS Page 1 Liquor Licensing Policy Manual "Residential Event" refers to an invitation only event held at a residence where liquor is sold by a licensed Caterer, such as a dinner party or wedding (see 14.9.1 for further information.) 14.1.2 Interpretation Because a Caterer’s Business Location does not meet the definition of establishment or licensed establishment in the Act, in order for certain sections of this manual to apply properly, the following interpretations are necessary. For the purposes of Sections 1, 2, 3, 4, 6.1, 7, and 13 of this manual, an establishment or a licensed establishment: includes a Caterer’s Business location does not include a Catered Event. For the purposes of Section 5, 6.3, 6.5, 8, 9, 10, and 11of this manual, an establishment or a licensed establishment: does not include a Caterer’s Business location includes a Catered Event. A reference in this manual to a section of the Act in Column 2 of the table, in relation to a Caterer, should be read as a reference to the section of the Act or Regulation in Column 3: Topic Column 2 Column 3 Owner of business at establishment/ business location 16(1)(b) of the Act 13.05(1)(a) of the Regulation Owner of establishment/ business location 16(1)(c) of the Act section 4 of the Regulation GM take action re: conviction for offenses related to establishment / business location 20(1)(b) of the Act 20(1)(a) of the Act, and 13.05(1)(g) of the Regulation GM take action for loss of permit for licensed establishment / business location 20(1)(e) of the Act 20(1)(a) of the Act, and 13.05(1)(f) of the Regulation Relocation of establishment / business 21(3) of the Act location 13.05(1)(d) of the Regulation Temporary suspension for public safety 22(1) of the Act 22(1.1) of the Act Display of signs 49(3) of the Act 13.05(1)(c) of the Regulation Entertainment 50(2) of the Act 50(3) of the Act Requesting documents 73(1) of the Act 13.05(1)(e) of the Regulation 14.2 Eligibility 14.2.1 Catering Licence Applicants must meet the relevant eligibility requirements outlined in Section 3.2 of this Manual in order for a Catering Licence to be issued, renewed or transferred. SECTION 14 – CATERING LICENCES AND CATERING ENDORSEMENTS Page 2 Liquor Licensing Policy Manual To qualify for a Catering Licence, applicants must be primarily in the business of preparing and serving food at other people’s events, and they must be able to demonstrate that they have the infrastructure and personnel necessary to provide catering services. Applicants will be required to have valid interest in their catering business (see Sections 3.2.4 and 4.5 of this Manual) and to own or lease a permanent location where their commercial kitchen and secure liquor storage will be contained. These must be at the same location. All Caterers must undergo a background check and meet residency requirements prior to licensing (Sections 3.2.2 and 3.2.3 of this Manual). In addition, Caterers are expected to hold in good standing health, business and other applicable permits. In determining if an applicant is eligible for a Catering Licence, the Branch may consider: advertising; food selection offered; kitchen equipment; staffing ; financial records; the ratio of receipts from food sales to receipts from liquor sales at catered events; and any other relevant consideration that may assist in the determination. These criteria are discussed further in sections 14.2.3 – 14.2.7. [Liquor Control and Licensing Act, section 16(1)(a), 16(1)(d), 16(3), 16(5); Liquor Control and Licensing Regulation sections 4, 13.02(1), 13.04; 13.05(1)(a) and (f)] 14.2.2 Catering Endorsement Eligibility Applicants for a Catering Endorsement must hold a valid food primary or liquor primary licence and must meet the following criteria: the primary business of the licensee’s catering operation must be the preparation and serving of food; the licensee must have the personnel and infrastructure necessary to provide catering services; and the licensee’s commercial kitchen must be located at the licensed establishment. In determining if an applicant meets the above eligibility criteria, the Branch may consider: Revised May 2013 advertising; food selection offered; kitchen equipment; staffing; financial records; the ratio of receipts from food sales to receipts from liquor sales at catered events; and any other relevant consideration that may assist in the determination. These criteria are discussed further in sections 14.2.3 – 14.2.7. Essentially, applicants must be able to demonstrate that: their licensed establishment prepares food on-site as part of its business; and the licensee intends to cater food at other people’s events held off-site (events must typically occur off-site, see section 14.8.2.1 for further details). Examples of liquor primary establishments that typically would qualify for a catering endorsement would be hotels, pubs, convention centres and conference centres. See 14.2.9 for examples of ineligible establishments. [Liquor Control and Licensing Regulation sections 13.03, 13.04; 13.05(1)(f)] SECTION 14 – CATERING LICENCES AND CATERING ENDORSEMENTS Page 3 Liquor Licensing Policy Manual 14.2.3 Kitchen Requirements: The kitchen should, other than in exceptional circumstances, contain: commercial appliances including a range, oven, refrigerator and dishwasher; a food storage area and a food preparation area; and the equipment needed to transport and serve food at events. See Also: Section 4.1.2 regarding exercising discretion. [Liquor Control and Licensing Regulation sections 13.02(b), 13.0(4)(a); Liquor Control and Licensing Branch Policy] 14.2.4 Food Selection Available The applicant must provide clients with reasonable variety of appetizers and main courses from which to choose. Caterers must be in the food preparation business: they must prepare most of the food they serve. They may, however, purchase items such as bread, desserts, or specialty items. [Liquor Control and Licensing Regulation sections 13.02(1)(a); 13.04(b); Liquor Control and Licensing Branch Policy] 14.2.5 Staffing The business must have a cook and adequate servers to cater events. [Liquor Control and Licensing Regulation sections 13.02(1)(b); 13.04(e); Liquor Control and Licensing Branch Policy] 14.2.6 Financial Records The applicant must make all financial records available (including catering contracts) and provide receipts for the liquor inspector to review upon request. (See Section 34 of the Regulations for a complete list of the required records.) [Liquor Control and Licensing Regulation sections 13.02(1)(a), 34] 14.2.7 Food to Liquor Ratio The ratio of receipts from food sales to receipts from liquor sales at events must support the fact that the primary focus is food. [Liquor Control and Licensing Regulation sections 13.02(1)(a), 13.04(f); Liquor Control and Licensing Branch Policy] 14.2.8 Examples of Businesses Ineligible for a Catering Licence To be eligible for a Catering Licence, the primary business of the applicant must be the preparation and service of food. The following are examples of businesses and organizations that would not be eligible for a Catering Licence because they are not primarily in the business of preparation and service of food: liquor primary clubs (additionally, this licence category is restricted to serving liquor to members and guests only); manufacturers; service clubs such as Rotary or Lions; grocery stores; promoters (additionally, they would be unlikely to be catering for other people’s events – see sections 14.4.2 and 14.4.3); SECTION 14 – CATERING LICENCES AND CATERING ENDORSEMENTS Page 4 Liquor Licensing Policy Manual bartending services; event planners. Mobile food carts or trucks would not be eligible because they would not have a permanent Business Location. Additionally, they would be unlikely to be catering for other people’s events (see sections 14.4.2 and 14.4.3). [Liquor Control and Licensing Regulation sections 13.02(1)(a); Liquor Control and Licensing Branch Policy] 14.2.9 Examples of Businesses Ineligible for a Catering Endorsement The Catering Endorsement is designed for establishments to provide a full range of food and beverages at unlicensed locations. Liquor primary club and manufacturer licences are not eligible for a Catering Endorsement because: Revised May 2013 Manufacturer endorsements allow manufacturers to sell and serve product to customers at the manufacturer’s facility, and are a means of encouraging customers to visit the manufacturer and purchase its product. Manufacturers are limited in their product selection by operating conditions (e.g. wineries can only sell BC wine); liquor primary clubs are restricted to serving liquor to members and guests only. The following are examples of liquor primary establishments that are generally considered ineligible for a catering endorsement, due to the limited nature of their liquor primary licence (i.e. the establishments are event driven or do not provide significant food service): stadiums, concert halls, theatres and other live-event establishments; gaming facilities; motor vessels, trains, and aircraft; nightclubs; and airport lounges. [Liquor Control and Licensing Act, section 16(3); Liquor Control and Licensing Regulation section 13.03(1); Liquor Control and Licensing Branch Policy] 14.3 Application Process and Changes to a Licence 14.3.1 Catering Licence Applicants for a Catering Licence are required to follow the licensing process set out in Section 3 of this manual, except: Applicants will not require local government comment prior to issuance; Applicants will not be required to submit a floor plan as part of the application; and Applicants must show their permit to operate a food service establishment1 to the inspector at the final inspection. [Liquor Control and Licensing Act, section 15(1); Liquor Control and Licensing Branch Policy] 14.3.2 Catering Endorsement An application for a Catering Endorsement may be made at the time of application for the food primary or liquor primary licence, or existing licensees may apply for an endorsement by completing an “Application for Permanent Change to a Licence”. No local government comment is necessary to obtain a Catering Endorsement. 1 This permit is required by section 8 of the Food Premises Regulation, and is issued by the region health authority. SECTION 14 – CATERING LICENCES AND CATERING ENDORSEMENTS Page 5 Liquor Licensing Policy Manual Applicants will be subject to a final inspection, and must show their permit to operate a food service establishment2 to the inspector at the final inspection. [Liquor Control and Licensing Act, section 15(1), 88; Liquor Control and Licensing Regulation sections 13.03; Liquor Control and Licensing Branch Policy] 14.3.3 Changes to a Licence or to Business Ownership Caterers are required to comply with the requirements of Section 4 of this Manual. Holders of a Catering Licence do not need to request approval for structural changes to their Business Location. There is no approval need for structural changes for a Catered Event. [Liquor Control and Licensing Regulation sections 7(2)] 14.3.4 Relocation of Business Location Caterers must not change the location of the Caterer’s Business Location without the written consent of the general manager.3 The general manager may give written consent to the relocation if: the applicant has demonstrated a valid interest in the proposed location; the applicant retains a valid interest in the current business location until the application receives approval; the proposed location does not contravene specifications established by health, building, fire and other local or provincial government authorities; the proposed location meets eligibility requirements described in section 14.2; and any other relevant factors are satisfactorily addressed. No local government comment is necessary for a relocation of the business location of a licensee with a Catering Licence. Applicants will be subject to a final inspection to confirm the location meets the kitchen requirements in section 14.2.1, and must show their permit to operate a food service establishment to the inspector at the final inspection. [Liquor Control and Licensing Regulation sections 13.05(1)(d)] 14.4 Catering Business Requirements 14.4.1 Catering Endorsement Terms and Conditions that Differ from Primary Establishment The terms and conditions that apply to an Event may differ from the terms and conditions regarding hours, food service, minors or entertainment that apply to the licensee’s food or liquor primary establishment. For example, a food primary licensee may offer entertainment at a Catered Event even if its restaurant does not have an entertainment endorsement, or a liquor primary licensee may cater an event that has minors even thought its liquor primary establishment does not permit minors. [Liquor Control and Licensing Act, section 86(b)(iii); Liquor Control and Licensing Regulation sections 9(2), 11(4); Liquor Control and Licensing Branch Policy] 2 3 This permit is required by section 8 of the Food Premises Regulation, and is issued by the region health authority. For the purposes of this section, ‘relocation’ means a relocation to a new address, as defined in section 4.4.2. SECTION 14 – CATERING LICENCES AND CATERING ENDORSEMENTS Page 6 Liquor Licensing Policy Manual 14.4.2 Business Relationship with Event Host Caterers must retain all revenue from liquor sales at an Event: they may not give any portion of the revenue from liquor sales to the Host. This does not prevent a Caterer from making a charitable donation to a registered charity, and does not prevent a Host from charging admission to an Event (e.g. dinner tickets for a set amount per plate, or a conference fee). Caterers may not cater a series of Events for the same Host if it appears that the Caterer is operating an ongoing business with that Host. Revised March 2013 Universities and colleges that hold a Catering Licence or Catering Endorsement may cater a series of Events with a Host, if: the Host of the Event is the university or college, or a group associated with the university or college; and the events are held on-campus. [Liquor Control and Licensing Regulation 13.05(i) and (j); Liquor Control and Licensing Branch Policy] 14.4.3 Hosting Own Event Caterers may not promote or invite people to an event they are catering, except for infrequent customer appreciation or staff appreciation events. In those cases, the Caterer must personally invite the guests and must provide the liquor at no charge. [Liquor Control and Licensing Regulation 13.05(h); Liquor Control and Licensing Branch Policy] 14.4.4 Serving it Right Program Requirements Caterers must ensure that managers and all staff who serve liquor at Events complete the Serving it Right program as detailed in Section 8.4 of this Manual. The exemptions for servers at Food Primary establishments are not applicable at Events. [Liquor Control and Licensing Act section 13; Liquor Control and Licensing Regulation 43; Liquor Control and Licensing Branch Policy] 14.4.5 Employee Conduct Caterers must comply with the requirements of Section 8.2 of this Manual, which prohibits employees from consuming liquor while working and regulates employee consumption of liquor after work. Caterers and their employees must not consume liquor at Events. [Liquor Control and Licensing Regulation 42(3); Liquor Control and Licensing Branch Policy] 14.4.6 Record Keeping All licensees must keep a number of records, including records related to: liquor and food purchases and sales; leases and management contracts; employee records; and liquor incidents. In addition, Caterers must keep: records of their catering contracts; copies of Catering Authorizations; and local government approval for Community Events and for extended hours. [Liquor Control and Licensing Regulation 34; Liquor Control and Licensing Branch Policy] SECTION 14 – CATERING LICENCES AND CATERING ENDORSEMENTS Page 7 Liquor Licensing Policy Manual 14.4.7 Posting Licence A licensee with a Catering Licence must post its original liquor licence certificate in a prominent location at the Business Location. The licence must be immediately available for review by liquor inspectors and police, if required, as detailed in Section 6.1 of this Manual. [Liquor Control and Licensing Regulation 37(2)] 14.4.8 Advertising A Caterer may advertise: the services they offer; the type of liquor they may offer for sale or service at Events; and previous Events they have catered. A Caterer may not otherwise advertise the availability, sale or service of liquor in relation to an ongoing or upcoming Event or in relation to their catering business. This does not prevent liquor primary or food primary licensees from advertising other aspects of their business in accordance with Section 13.1.1 of this Manual. Advertisements may not include manufacturer and brand names, or information on liquor prices. All advertisements must comply with the applicable advertising terms and conditions outlined Section 13 of this Manual. [Liquor Control and Licensing Regulation 13.05(1)(c), 57(3.1) and (4.1); Liquor Control and Licensing Branch Policy] 14.4.9 Requirements for Signs for Licensees that have a Catering Licence All advertisements and signs must comply with the advertising terms and conditions outlined Section 13 of this Manual. Signage or advertising must make clear that serving food at other people’s events is the primary purpose of the business, and may therefore not show people with liquor, unless the people have food in front of them. [Liquor Control and Licensing Regulation 13.05(1)(c), 57(3.1) and (4.1); Liquor Control and Licensing Branch Policy] 14.4.10 Relationships with Liquor Manufacturers and Agents Caterers must comply with the requirements of Section 12 of this Manual, with the following amendments: Promotional activity includes the provision of goods and services related to the operation of the Caterer’s catering business; and Promotional items at an Event must be for the principal benefit of patrons of the Event. Caterers may not agree to sell only one manufacturer's products at Events they cater, or to promote a particular product, because of their association with a particular liquor manufacturer or agent. Caterers must offer a range of products from a variety of discrete manufacturers for Hosts to select from. However, at an event, Caterers may limit the product selection available (i.e. feature only one manufacturer’s product) at the request of the Host. [Liquor Control and Licensing Regulation, section 50.1] 14.5 Liquor Service and Sales Caterers may purchase, transport, and sell liquor, and may maintain a liquor inventory in accordance with the requirements of Section 7 of this Manual. SECTION 14 – CATERING LICENCES AND CATERING ENDORSEMENTS Page 8 Liquor Licensing Policy Manual Liquor must be stored at the Caterer’s Business Location. See Also: For Catered Events: 14.8.2 – 14.8.7 For Residential Events: 14.9.1-14.9.2 [Liquor Control and Licensing Act section 44(3)(b), 86; Liquor Control and Licensing Regulation 13.05(1)(b), 35] 14.5.1 Liquor Register Caterers must maintain a liquor register at their Business Location as required by Section 7.2 of this Manual. [Liquor Control and Licensing Regulation section 35(3); Liquor Control and Licensing Branch Policy] 14.5.2 Sources of Liquor Caterers must purchase their liquor from the Liquor Distribution Branch, as described in section 7.2 of this Manual. Hosts that are registered charities may not provide liquor donated by a manufacturer to be served at a Catered Event. Patrons at a Catered Event may not bring their own liquor for consumption at a Catered Event. [Liquor Control and Licensing Act section 38, 38.1, 39; Liquor Control and Licensing Regulation 35(1); Liquor Control and Licensing Branch Policy] 14.5.3 Pricing Caterers must comply with the requirements of Section 7.3 of this Manual and specifically must: make a price list available to patrons at Events; set the price of liquor prior to an Event and maintain that price throughout the Event. Liquor prices may be different for different Events, and may be different than the price list in effect for a Caterer’s food primary or liquor primary establishment; and avoid sales strategies that would promote intoxication, such as unlimited quantities for a single price, or price changes during the event specials currently offered. Caterers may circulate with trays of drinks if they have been pre-ordered by patrons or the Host of the Event. [Liquor Control and Licensing Regulation 41; Liquor Control and Licensing Branch Policy] 14.5.4 Types of Liquor Sold All types of liquor may be sold at Residential Events. The general manager may limit the type of liquor sold at specific Catered Events. If the type of liquor is limited at a Catered Event, it will be identified on the Catering Authorization. Factors the general manager may consider in limiting the types of liquor sold are listed in section 7.1. [Liquor Control and Licensing Act s.91(2)(a); Liquor Control and Licensing Branch Policy] 14.5.5 Drink Sizes Caterers must comply with the drink size requirements in Section 7.4 of this Manual. [Liquor Control and Licensing Act s. 91(1); Liquor Control and Licensing Branch Policy] SECTION 14 – CATERING LICENCES AND CATERING ENDORSEMENTS Page 9 Liquor Licensing Policy Manual 14.5.6 Caterer Must be at Event Only a Caterer or its employees may sell liquor at an Event, and the Caterer or its employees must be in attendance at the Event at all times that liquor is being sold or served. This ensures that the Caterer is complying with its primary purpose of serving food at Events, rather than acting as a liquor delivery service. It is important the Caterer be present to monitor patron consumption. [Liquor Control and Licensing Regulation 13.05(1)(l) and (m)] 14.6 Minors Minors are allowed to work at a catering licensee’s Business Location. Minors may serve food or work as entertainers at an Event, but may not serve liquor. This is because Catered Events may not be as ‘familyoriented’ as food primary establishments and therefore these measures are taken to protect minors. Minors may attend Catered Events, except where the Event includes adult entertainment or gaming (other than ticket raffles). Caterers must ensure they do not serve liquor to minors. Minors may attend Residential Events, but must not be served liquor. Caterers must verify a patron’s age as outlined in Section 10 of this Manual. For full details on minors in licensed establishments and the identification of minors please refer to section 10 of the Manual. [Liquor Control and Licensing Act, sections 33(1), 35; Liquor Control and Licensing Regulation sections 13.05(3) and 45(1); Liquor Control and Licensing Branch Policy] 14.7 Catering Authorization Approval Process 14.7.1 When a Catering Authorization is Not Required To respect personal privacy, Catering Authorizations are not required for Residential Events. Catering Authorizations are not required for events where the Caterer does not sell or serve liquor purchased under their licence (e.g. an event that has a Special Occasion Licence, or a food-only event). [Liquor Control and Licensing Act, section 90] 14.7.2 Request for a Catering Authorization Before each Catered Event, the Caterer must submit a request for a Catering Authorization, including the following information: the Caterer’s name and contact information; client’s name; nature of the Event; date, time and location of the Event; maximum number of people attending; whether minors will be attending; and type of entertainment and food service provided. This must be submitted to the Branch online via the OneStop Business Registry (www.bcbusinessregistry.ca). Caterers must disclose all material facts required by the application, and must not make any false or misleading statements. [Liquor Control and Licensing Act, section 89 and 90; Liquor Control and Licensing Regulation sections 13.06(1) and (3); Liquor Control and Licensing Branch Policy] SECTION 14 – CATERING LICENCES AND CATERING ENDORSEMENTS Page 10 Liquor Licensing Policy Manual 14.7.3 Timeframe for Submitting Requests Certain Events are considered low risk and will be approved immediately; others will require the liquor inspector’s approval. A Caterer must request a Catering Authorization for a low risk Event 10 calendar days before the Event. A Caterer must request a Catering Authorization for all other Events 21 calendar days before the Event. The Branch may amend a Catering Authorization upon request. [Liquor Control and Licensing Act, section 89, 90; Liquor Control and Licensing Branch Policy] 14.7.4 Low Risk Events The following Events will be considered low risk: family events under 500 people; corporate events under 500 people; indoor events (other than community events) under 500 people; and any event (other than a community event) where the duration of liquor service does not exceed two hours. Examples of Events that are likely low-risk: family celebrations; corporate functions; a non-profit club’s dinner and dance; theatrical performances; fundraisers; and gallery openings. In some circumstances, the Branch may require that all Catered Events from a Caterer require approval by a liquor inspector. For example, the Caterer, Business Location, or associated establishments may be high risk, or the Caterer may have a compliance history that warrants this action. [Liquor Control and Licensing Act, section 90; Liquor Control and Licensing Branch Policy] 14.7.5 Events Requiring Inspector Approval Events not considered low risk require approval by a liquor inspector. Examples of Events that will require approval: community events, such as festivals, rodeos, exhibitions, sports tournaments, and concerts, and requests for exemptions to the terms and conditions, such as longer hours. The liquor inspector may also require Caterers to submit a security plan, and may require Caterers to provide evidence that the police, fire department, or local government support the Event. The Branch may approve an Event subject to conditions. [Liquor Control and Licensing Act, sections 89(2), 90, 91; Liquor Control and Licensing Branch Policy] 14.7.6 Security Plan For Events requiring inspector approval, the liquor inspector may require a security plan to minimize alcohol-related problems that may arise. Whether a Caterer is required to submit a security plan will depend on factors such as: the number of people attending the Event and whether minors are present; how prominent drinking will be at the Event; the time of day and length of the Event; SECTION 14 – CATERING LICENCES AND CATERING ENDORSEMENTS Page 11 Liquor Licensing Policy Manual the type of Event; target age and type of music that will be featured; whether the Event is open to the general public; the venue configuration and how easy it is to monitor guest behaviour; police capacity to respond to problem situations; and previous Events and the Caterer’s experience. The security plan must describe the event in detail, including: staffing levels (including security if required); liquor service areas; and venue capacity. The security plan must also demonstrate how safety and security risks will be addressed, such as: service to minors over-crowding and intoxication, and the control and safety of patrons, including entering and exiting the venue. A template for the Security Plan is available on the Branch’s website. Caterers may use this template or their own format, as long as they provide the same information. Any designated security staff at an Event must be licensed according the Security Services Act. [Liquor Control and Licensing Act, sections 89 and 90; Liquor Control and Licensing Branch Policy] 14.7.7 Other Notifications and Approvals Caterers must also notify police (via fax or email) of all Catered Events. Caterers must keep copies of local government or First Nation approval on file for all community events, Events with extended hours, and for all Events held on Tsawwassen First Nation or Nisga’a Nation land. If a local government or First Nation issued their approval subject to conditions, the Caterer must provide a copy of the conditions to the liquor inspector. Local governments or First Nations may opt out of providing approval for community events or events with extended hours. These Events are still subject to approval by the liquor inspector. [Liquor Control and Licensing Act, section 91(3); Liquor Control and Licensing Branch Policy] 14.7.8 Authority to Restrict Frequency of Events The general manager may prohibit or limit the frequency of Catered Events at specific locations. [Liquor Control and Licensing Act, section 91(4); Liquor Control and Licensing Branch Policy] 14.7.9 Cancelled or Suspended Catering Authorizations The Branch may cancel a Catering Authorization if: the Event circumstances which the authorization was based on change and no longer meet the requirements of the Act or regulation the Event circumstances which the authorization was based on did not exist at the time the Catering Authorization was issued or the Catering Authorization was issued in error. For example: the number of people attending the Event or the location of the Event has changed such that the number of people exceeds the capacity of the venue; the information provided about the Event was inaccurate (e.g. the Caterer misstated the number of people attending the Event); or SECTION 14 – CATERING LICENCES AND CATERING ENDORSEMENTS Page 12 Liquor Licensing Policy Manual an authorization was issued that did not comply with policy (e.g. minors will be present at an Event featuring adult entertainment). A Caterer must promptly surrender a Catering Authorization to the general manager if it has been cancelled or suspended under section 22, 23 or 92 of the Act. [Liquor Control and Licensing Act, section 92; Liquor Control and Licensing Regulation, section 13.05(1)(k)] 14.8 Catered Events 14.8.1 Posting Licence and Authorization Caterers must post a copy of their licence and the Catering Authorization at the Catered Event, and have available any local approvals or security plans. [Liquor Control and Licensing Regulation 37(2) and (3); Liquor Control and Licensing Branch Policy] 14.8.2 Venue The site of a Catered Event is considered a “licensed establishment”. Caterers must ensure that all Catered Events comply with local by-laws, health and fire regulations. Catered events on land within the Agricultural Land Reserve must comply with Agricultural Land Commission requirements. A Caterer may cater an Event at a location that is owned or leased by the Caterer (but the Caterer cannot host the Event unless it complies with Section 14.4.3 of this Manual). Catered Events may take place in the licensed area of a food primary or liquor primary establishment or a licensed area of a manufacturer if the licensee or manufacturer de-licenses the area. Catered Events may take place in the green-lined area of a liquor primary club. See sections 5.2 and 5.3 for information about de-licensing (temporary suspensions) and alternate use. [Liquor Control and Licensing Act, section 87(1) and 91(2)(b); Liquor Control and Licensing Regulation 13.06(2)(d); Liquor Control and Licensing Branch Policy] 14.8.2.1 Catered Events Held On-site Revised May 2013 A licensee with a Catering Endorsement may cater Events that are outside the licensed area of its licensed establishment (the area that is red-lined on the floor plans), but on the same property. However, these Events must generally take place in an unlicensed banquet room or the equivalent, rather than other unlicensed areas of the establishment. Catered Events may also be held on-site in unlicensed outdoor areas such as a courtyard, lawn or rose-garden, but may not take place in parking-lots. A licensee with a Catering Endorsement must ensure that events are primarily catered at locations off-site to prevent a change in the primary focus of the operation of the establishment. See also: Section 14.7.8, regarding the general manager’s authority to restrict the frequency of events at a location; Section 14.4.3, regarding when a licensee may host an Event. [Liquor Control and Licensing Branch Policy] 14.8.3 Separation of Catered Event from Adjoining Areas The site of a Catered Event must be adequately separated from adjacent licensed and unlicensed areas, and all means of access to the site of the Catered Event must be supervised to the Branch’s satisfaction. If a Catered Event is held on the same property as a liquor primary or other establishment that does not permit minors, minors at the Catered Event may not pass through the licensed area of the establishment to access the washrooms, or for any other purpose. If the Catered Event is held on the same property as an SECTION 14 – CATERING LICENCES AND CATERING ENDORSEMENTS Page 13 Liquor Licensing Policy Manual establishment that allows minors, minors at the catered event must comply with any applicable restrictions while in the licensed area of that establishment (e.g., must be accompanied by a parent or guardian). Outdoor Events must be surrounded by a barrier sufficient to confine the service and consumption of liquor. This assists the Caterer to control capacity, evaluate patrons when they arrive, and prevent patrons from removing liquor from the licensed area. The type of perimeter fencing required will vary with the Event. Stanchions may be sufficient for a small corporate event, whereas a community event would require more substantial fencing. [Liquor Control and Licensing Regulation 13.06(2)(a), 38; Liquor Control and Licensing Branch Policy] 14.8.4 Event Capacity Caterers must ensure that the number of people at the Catered Event complies with the venue’s occupant load and the maximum attendance (including staff) specified in the Catering Authorization. [Liquor Control and Licensing Regulation 13.06(2)(e)] 14.8.5 Liquor Service Hours The General Manager has limited the hours of liquor service at Catered Events as follows: liquor may be served at indoor Events between 9:00 a.m. and 2:00 a.m.; and at outdoor Events from 9:00 a.m. to 10:00 p.m. With local government and the Branch’s approval, outdoor Event hours may be extended until 2:00 a.m. For New Year’s Eve, liquor service at Catered Events may be extended to 4:00 a.m. provided that food is available to patrons and local government has given approval. These limitations are consistent with Special Occasion Licence rules for event hours. Events after 10:00 p.m. outdoors are more likely to cause community disturbances, so the local government should have a chance to comment on whether it is appropriate, given the location of the Catered Event. The general manager may consider the factors described in section 5.1.2 when setting the hours for a Catered Event. See section 5.1.7 regarding hours of operation on night of a time change. [Liquor Control and Licensing Act section 91(2)(c); Liquor Control and Licensing Regulation sections 13.06(2)(b); Liquor Control and Licensing Branch Policy] 14.8.6 Food Caterers must serve food and non-alcoholic beverages at a reasonable price at Catered Events. While food does not need to be served at all times during a Catered Event, over the course of the Event liquor service must be secondary to food service. At minimum, appetizers must be served and more food may be required depending on the length and type of Event. Serving packaged snacks such as chips, peanuts, and those commonly found in vending machines does not meet the minimum food requirement. In most cases, Caterers would not be able to serve at liquor-tasting Events because the focus of the Event would be on the consumption of liquor rather than on food. Inspectors may inspect the records of a Caterer and inspect Catered Events to determine whether required food items and non-alcoholic beverages are available to patrons. For an explanation on why food is required in licensed establishments please refer to section 9 of the Manual. [Liquor Control and Licensing Regulation 13.04(f), 13.06(2)(c); Liquor Control and Licensing Branch Policy] SECTION 14 – CATERING LICENCES AND CATERING ENDORSEMENTS Page 14 Liquor Licensing Policy Manual 14.8.7 Management and Control of a Catered Event Caterers are responsible for managing and controlling the behaviour of patrons at Catered Events. They must ensure that other patrons, their staff and members of the community are not harmed as a result of liquor misuse or criminal activity at a Catered Event, and they are required to take steps to ensure the Event does not disturb the surrounding community. The site of a Catered Event is considered a “licensed establishment” and Caterers must therefore comply with the relevant portions of Section 8.1 and 8.3. [Liquor Control and Licensing Act, section 87] 14.8.7.1 Caterer’s Responsibility to Manage Patron Conduct Caterers must comply with Section 8.1.1 of this Manual. In particular, they must: ensure guests do not become intoxicated at Catered Events; refuse service to a person who is intoxicated or apparently under the influence of liquor; and prevent a person who is intoxicated or undesirable from entering or remaining at a Catered Event. Patrons may only consume liquor in those areas noted on the Catering Authorization, except as provided in Section 8.1 of this Manual. Patrons at a Catered Event may take away an unfinished bottle of wine, provided the Caterer reseals in the bottle and complies with the requirements of section 8.1.6. Caterers must remove liquor from patrons within a half hour after the time stated on the catering authorization for the hours of liquor service. Unlike a bar or restaurant, the Caterer does not control the venue where the event is taking place. Once the Caterer has removed the liquor and left the Event, the Caterer has no control over the conduct of the patrons that remain. As a result, Caterers are not required to prevent patrons from consuming liquor beyond the half hour after the liquor service hours stated in the Catering Authorization. See Also: Liquor Service and Sales, 14.5 [Liquor Control and Licensing Act, section 43, and 46; Liquor Control and Licensing Regulation 42(2), 42(4), 44(2.2), 44(3.1)] 14.8.7.2 Catering Authorization Suspension or Cancellation and Closure of Catered Event Section 22 of the Act allows the general manager to suspend or cancel a Catering Authorization and order the immediate removal of patrons where there is an imminent threat to people's safety. In this situation, the Caterer is required to take all reasonable steps to ensure that patrons vacate the premises immediately. In extraordinary circumstances, the general manager may suspend a Catering Licence or Catering Authorization or impose terms and conditions for up to 14 days without a hearing. While rarely exercised, section 23 of the Act provides this power for situations where there are public interest or safety concerns, for example when there has been violence or extensive criminal activity, there is the risk of retaliatory gang violence or the possibility of public unrest. [Liquor Control and Licensing Act, section 22(1.1), 23] 14.8.8 Entertainment 14.8.8.1 Authority to approve, prohibit, restrict or limit entertainment at a Catered Event The general manager may restrict and limit games and entertainment at a Catered Event. The factors considered in imposing terms and conditions for entertainment and games are outlined in section 11.1.2. A municipality, regional district, local government, or First Nation may pass a bylaw restricting or prohibiting the type of entertainment or games in a licensed establishment. Entertainment must conform to local bylaws, and not impose noise, nuisance or negatively impact nearby residents and businesses. SECTION 14 – CATERING LICENCES AND CATERING ENDORSEMENTS Page 15 Liquor Licensing Policy Manual [Liquor Control and Licensing Act, section 50(3), 91(2)(e); Liquor Control and Licensing Regulation, 13.06(2)(d), 46; Liquor Control and Licensing Branch Policy] 14.8.8.2 Allowable Entertainment at Catered Events Catered Events may have the following types of entertainment: games and entertainment described in 11.1.3; audio, films, video and television, in accordance with 11.5; a contest or tournament, if it complies with the requirements of section 11.3; Gaming, in accordance with 11.4. If minors are present, the only forms of gaming permissible are ticket raffles and BC Lottery products; and adult entertainment, provided it complies with 11.5, and no minors are present. [Liquor Control and Licensing Act, section 50(3), 91(2)(e); Liquor Control and Licensing Branch Policy] 14.9 Residential Events Sections 5, 6, 8.1, 8.3, 9, and 11of this Manual do not apply to Residential Events. See Also: Liquor Sales and Service, 14.5 14.9.1 Definitions A Residence is defined in the Act as: a building or part of it, or a trailer, camper, manufactured home, tent or vessel that is genuinely and actually occupied and used by the owner, lessee or tenant solely as a: o private dwelling; o private guest room in a hotel, motel, auto court, lodging house, boarding house or club; or o private summer dwelling, or a private dwelling or living place used during vacation periods or a private lodge; or a building or part of it designated by the general manager as a private dwelling; together with the land that is essential or appropriate for the convenient use, occupation and enjoyment of the private dwelling or private summer dwelling. A lodging or boarding house includes a “bed and breakfast” establishment. The common room of a condominium or strata complex is considered part of the residence of a condominium or strata unit owner or tenant. When the room is booked for a private social function by residents, no Catering Authorization is required. If a house and property is being rented out as a business as a venue for Events, it would not, in most cases, qualify as a residence. A building has to be used solely as a private dwelling, private guest room or private vacation dwelling to meet the definition of residence. A building that is being used as a venue for Events or other business purposes is not used solely for private use. However, any bedrooms being occupied would be treated as a residence. A private summer dwelling that is used for vacation rentals, but is not typically used for events or business purposes, would be eligible as a location for a residential event. A private guest room in a hotel, inn, bed & breakfast or similar business qualifies as a residence, but the area that is considered residential is limited to the room, it does not include other areas of the building or the land adjoining it. "Residential Event" refers to an invitation only Event held at a residence where liquor is sold by a licensed Caterer, such as a dinner party or wedding. If an event is occurring at a Residence, and either everyone is welcome to attend, or anyone is allowed to purchase tickets to attend the event, then the event would not meet the definition of a “Residential Event”. A flier or other method of bulk mailing is not considered a personal invitation. SECTION 14 – CATERING LICENCES AND CATERING ENDORSEMENTS Page 16 Liquor Licensing Policy Manual [Liquor Control and Licensing Act, s. 1; Liquor Control and Licensing Regulation, section 13.01; Liquor Control and Licensing Branch Policy] 14.9.2 Selling and Serving Liquor A Caterer may only sell liquor to the Host; they may not sell drinks directly to the patrons at a Residential Event (i.e. only hosted bars are allowed). Caterer may serve liquor provided by the Host or the Host’s guests at a Residential Event. This includes commercially-made and UBrew/UVin product. All liquor sold by a Caterer to the Host must be consumed at the Residence. At the conclusion of the Residential Event, all unused liquor purchased under the Caterer’s licence must be returned to the Business Location, with the exception of unfinished bottles of wine, which may be re-sealed for the Host to keep or for guests to take home. Caterers must not promote or encourage intoxication, and must not allow patrons to become intoxicated. Caterers must refuse service to a person who is intoxicated or apparently under the influence of liquor. [Liquor Control and Licensing Act, sections 43; Liquor Control and Licensing Regulation, sections 42(6.1) and 44(2.2)] 14.9.3 Hours There are no established hours for liquor service at Residential Events. [Liquor Control and Licensing Act, section 84(3)(a.1)] 14.9.4 Inspections Liquor inspectors do not have authority to enter Residential Events to check for compliance because Residential Events are not licensed establishments. [Liquor Control and Licensing Act, section 86, 87, Liquor Control and Licensing Regulation section 1(4)] 14.10 Serving Liquor at Other Events Caterers may serve liquor at events where the host provides the liquor, such as a Special Occasion Licence event, or an event at a private location where a Special Occasion Licence is not required. In these circumstances, the Caterer cannot purchase, transport or sell the liquor; they may only serve it. Refer to the Special Occasion Licence Policy Manual for terms and conditions applicable to special occasion licensed events. SECTION 14 – CATERING LICENCES AND CATERING ENDORSEMENTS Page 17 Liquor Licensing Policy Manual SECTION 15: Licensee Retail Stores 15.0 Introduction This section provides an overview of the legislation, regulations, policy and history specific to licensee retail stores that is not contained elsewhere in the manual. 15.1 Licensee Retail Store (LRS) Licence Policy Rationale A licensee retail store (LRS) licence is issued to the owners of stores selling liquor for consumption off the premises. These stores were previously known as cold beer and wine stores and are now referred to as private liquor stores or LRS since they were granted permission to sell spirits on April 2, 2002. The acquisition of new LRS licences has been quite restricted over the years. After a lengthy period in which there was a moratorium on the acquisition of new LRS licences — between 1988 and 2002 for neighbourhood and marine pubs, and between 1992 and 2002 for hotels — new applications were briefly accepted for a period between August 12 and November 29, 2002. A moratorium is once again in place until July 1, 2022, and no new applications are being accepted for LRS licences. A full history of changes to the LRS licence model over time is available in an appendix at the end of this section (see s. 15.12). Operating principles for LRS are described in section 2. Policies 15.1.1 Moratorium on new licences No new applications for LRS are being accepted and no new licences will be issued. The moratorium is in place until July 1, 2022. [Liquor Control and Licensing Regulations, section 14(2.2)] 15.1.2 Valid interest and management contracts with third parties For information on management contracts with third parties and maintaining valid interest in an establishment, please see section 4.5. [Liquor Control and Licensing Act, sections 16(1)(b) and (c), and sections 17(1) and (2); Liquor Control and Licensing Regulations, section 4(1)] 15.2 Structural changes and relocations Please see section 4.4 for general information on licence relocations, including LRS. Please see section 6.2 for general information on structural change applications, including LRS. 15.2.1 Structural changes Structural changes are changes to existing construction, and are defined in detail in s. 6.2.1. Where an LRS proposes to move to an address at the same site and within the existing building (with the same parcel identifier number) or to a location that is attached to or abutting the existing building, this is considered a structural change application. An application by an LRS proposing to move from one unit to another unit with a different parcel identifier number in the same building structure (e.g. a shopping mall) is considered a relocation and is subject to policy 15.2.2 (Relocations) below. SECTION 15 – LICENSEE RETAIL STORES Page 1 Liquor Licensing Policy Manual Some existing LRS are set up for drive-through sales, and while these stores are allowed to continue operating their drive-throughs, the addition of a drive-through window as part of a structural change is not permitted. Structural changes are subject to standalone policy (see section 15.3). [Liquor Control and Licensing Act, section 6(c), 20(1)(e), and 21(3); Liquor Control and Licensing Regulations, sections 6(1) through (3) and 7] 15.2.2 Relocations Relocations are defined in section 4.4 and 4.4.2. LRS licensees may apply to relocate their store to another location in the same local government jurisdiction, or to a location outside the local government jurisdiction that is within five kilometres of the existing LRS. Revised February 2013 Applications to relocate an LRS will not be approved by the general manager if the proposed site is within 1 km of an existing LRS or the site of an LRS application in progress. There are only four circumstances under which the general manager may approve the relocation of an LRS to a location within 1 km of another LRS. These are: Where the address of the proposed location is the same legal address as the existing site; Where the proposed location is not closer to an existing or proposed LRS than the current location; Where the travelling distance between the proposed location and any existing or other proposed LRS is 1.0 km or more because of the existence of a natural barrier; or Where the relocation is necessitated by a fire or natural disaster and the store has been substantially destroyed as a result. The general manager has no discretion or authority to make exceptions for LRS that do not meet these criteria. Relocation applications are subject to standalone policy (see section 15.3). [Liquor Control and Licensing Regulations, section 14(3), 14(3.1), 14(5), 14(6) and 14(7)] 15.2.3 Plans approval guidelines Staff will complete the following in approving plans for an LRS relocation or structural change: Identify non-public access areas on floor plans; Blue-line public access areas only; Review for suitable separation between the LRS and other licensed and unlicensed areas; and Ensure new location does not include plans for drive-through facilities. [Liquor Control and Licensing Act, section 6(c); Liquor Control and Licensing Regulations, sections 5, 6(1) through (3)] 15.3 Standalone Policy 17B Policy Rationale Since the LRS model was introduced in 1985, in order to operate an LRS the licensee was also required to be associated with (i.e. own and operate) a qualifying liquor primary (LP) establishment. This requirement was removed in December, 2009. The requirement to avoid the appearance of association with another business other than certain types of related businesses (i.e. an LP, a licensed hotel [including associated food primary {FP}], another LRS) has been in place since 2002, but a further regulatory SECTION 15 – LICENSEE RETAIL STORES Page 2 Liquor Licensing Policy Manual amendment was implemented to continue and clarify the policy once ownership of LRS was no longer restricted. Government does not support LRS in premises located in or associated with any other business or type of business, except for certain other types of licensed establishments that have been historically permitted to have an association. Policies 15.3.1 Permitted associations LRS associations with an LP, LRS, or licensed hotel (including associated FP) have historically been permitted and continue to be permitted. An association between one or more LP, LRS, or licensed hotel (including associated FP) might include but is not limited to the following: A previously linked LP; Use of a common name or other visual identifiers; Common ownership; or A common physical location. [Liquor Control and Licensing Regulations, sections 14(3) and (3.1) and section 38] 15.3.2 Standalone requirements where an LRS is owned by or is being sold together with the associated LP, LRS, or licensed hotel (including associated FP) 1. Location and Physical Requirements LRS locations previously approved by the general manager may continue; Use of an existing approved common staff door may continue but no new common staff doors will be approved; Liquor must be stored on-site; and Common liquor storage areas with the associated business are permitted providing the licensee ensures that the liquor purchased under each liquor licence is physically separate, clearly labelled, and clearly identifiable to any reasonable person. Licensees are encouraged to have a completely separate liquor storage area for each liquor licence. 2. Naming and Appearance Requirements The LRS may use a common name and other visual identifiers of the associated business (e.g. logos, trademarks, signage, colour schemes). 3. Separation of Business Requirements LRS must not operate as a loss leader in support of any other business. 4. Advertising and Promotional Requirements Joint advertising and promotions between the LRS and any associated LP, LRS, or licensed hotel (including associated FP) are permitted. The LRS may: o Sell trademarked or brand name non-liquor products of the associated business (for a list of non-liquor items that may be sold in LRS, please see s. 15.6); o Conduct joint advertising with the associated business; o Offer discounts by or in an LRS, based on purchases in the associated business; o Offer gift cards that are associated with or redeemable by the associated business; and o Operate a customer loyalty program with the associated business. [Liquor Control and Licensing Regulations, sections 14(3) and (3.1) and section 38] SECTION 15 – LICENSEE RETAIL STORES Page 3 Liquor Licensing Policy Manual 15.3.3 Prohibited associations LRS are prohibited from appearing to be associated with any other business that is not an LP, LRS, or licensed hotel (including associated FP). Standalone policy for LRS not associated with an LP, LRS, or licensed hotel (including associated FP) is as follows: U U 1. Location and Physical Requirements LRS must be located in: o A permanent, free standing building that does not contain another business; or o If in a building in which there are other businesses, the LRS must have a solid, fixed and immoveable floor-to-ceiling wall between the LRS and any other business. A separate and dedicated public entrance must be maintained for both the LRS and any shared or adjoining area with no public entrance to either facility from the other, although they may share a common public thoroughfare such as a lobby. Common staff door links with any other business are not permitted; and Liquor must be stored on-site and common liquor storage areas with any other business are not permitted. 2. Naming and Appearance Requirements An LRS may not use a name or other visual identifier (e.g. logos, trademarks, signage, colour schemes) of another business. 3. Separation of Business Requirements LRS must maintain and have available upon request separate business and financial records (e.g. bank accounts, credit accounts) for each liquor licence; and LRS must not operate as a loss leader in support of any other business. 4. Advertising and Promotional Requirements Selling trademarked or brand name non-liquor products of another business is prohibited in an LRS, unless these products are also available for wholesale purchase by other licensees and do not share the other business‘ name (for a list of non-liquor items that may be sold in LRS, please see s. 15.6). LRS may advertise the products sold in the LRS, but joint advertising involving an LRS and another business is prohibited. Offering discounts by or in an LRS based on purchases in another business is prohibited. Gift cards may not be associated with or redeemable by another business. Operating a customer loyalty program in an LRS which recognizes purchases made in another business is prohibited. [Liquor Control and Licensing Regulations, sections 14(3) and (3.1), section 38] 15.4 Signs and advertising The following conditions apply to signage and advertising for LRS: the words “British Columbia liquor store”, or “government liquor store”, may not be used to avoid confusion with the names used by the Liquor Distribution Branch signs and advertisements may not use pictures of minors, personalities, images or activities that may appeal to minors. [Liquor Control and Licensing Act, sections 49(3) and 51.1; Liquor Control and Licensing Regulations, sections 56 and 57] SECTION 15 – LICENSEE RETAIL STORES Page 4 Liquor Licensing Policy Manual 15.5 Conditions for liquor sales 15.5.1 Types of liquor sold Licensee retail stores are permitted to sell all types of liquor, subject to limitation by the general manager in the licence. [Liquor Control and Licensing Act, sections 6(c) and 12(3)(a); Liquor Control and Licensing Regulations, section 14(1)(a)] 15.5.2 Hours of Sale Subject to limitation by the general manager, the hours of sale for a licensee retail store are between 9:00 a.m. and 11:00 p.m. The 11:00 p.m. closing time applies to all liquor retailers, including government liquor stores. [Liquor Control and Licensing Act, section 12(3)(c); Liquor Control and Licensing Regulations, section 14(1)(b)] 15.5.3 Minors Minors are only permitted in a licensee retail store when they are accompanied by a parent or guardian who is shopping. Minors, including the minor children of licensees or their employees, may not be employed or appear to be employed in an LRS, including any area within or about the premises where product is stored or sold and any empty container return areas. [Liquor Control and Licensing Act, section 35; Liquor Control and Licensing Regulations, section 14(1)(c)] 15.5.4 Outdoor Patios Outdoor patios are not permitted for LRS, which are licensed only for the sale of packaged liquor. [Liquor Control and Licensing Act, section 12(3)(b)] 15.5.5 Liquor sales and prices All liquor products registered by the Liquor Distribution Branch may be sold, subject to any restrictions set out in the terms and conditions of the licence. Liquor prices in licensee retail stores must be set at or above the Liquor Distribution Branch (LDB) purchase price of the liquor, must include the provincial sales tax and must be displayed prominently. LRS operators are permitted to adjust their prices at anytime throughout the business day. All purchase and sales transactions must be conducted in the licensed establishment. Liquor may not be taken off the premises for sampling or sale. [Liquor Control and Licensing Regulations, section 41(3); Liquor Distribution Act, section 8(1)] 15.5.6 Conditions for on-premises liquor consumption Consumption of liquor within a licensee retail store is prohibited, except for consumer tasting purposes (see s. 15.9) and product sampling by staff (see s. 15.10). F [Liquor Control and Licensing Regulations, section 14(1)(g)] 15.5.7 Training requirements An LRS licence will not be issued, transferred or renewed unless the “Serving It Right: The Responsible Beverage Service Program” has been successfully completed by the applicant or licensee to whom the licence will be issued, transferred or renewed. SECTION 15 – LICENSEE RETAIL STORES Page 5 Liquor Licensing Policy Manual Anyone engaged, by contract or by employment, to manage a licensed establishment must have completed the Serving It Right training program before starting their contract or employment. Anyone hired or contracted as sales staff or any other position which requires the sale of liquor must have completed the Serving It Right program prior to starting their employment. Please refer to section 8.4 for details on the Serving It Right program. [Liquor Control and Licensing Act, section 13; Liquor Control and Licensing Regulations, section 43] 15.5.8 Games and Entertainment Games and entertainment are not permitted in licensee retail stores. [Liquor Control and Licensing Regulation, section 14(1)(f)] 15.5.9 Liquor delivery LRS stores may offer delivery of the liquor products they are authorized to sell to the public, as long as they are in compliance with the following terms and conditions: Liquor can only be sold and delivered to individuals 19 years of age or older. When proof of age is required, customers must show two pieces of identification at the time of delivery. One of those pieces must be a government issued identification card such as a driver's licence with photo, name and birth date. The other piece must contain the person's name along with a signature or picture; Delivery to an intoxicated person or someone under the influence of drugs is prohibited; Delivery must end no later than one half hour after the LRS closing time; Only regularly stocked products that are available for purchase by walk in customers may be delivered; Delivery charges must include the regular retail price of the liquor plus a separate delivery charge and customers must be informed of both charges when they place an order; Delivery must take place from the licensee retail store only; and Delivery transaction records must be maintained for at least three years. These must include the date, time and address of each delivery, the products purchased, the prices charged, delivery fees , total amount paid and the name of the purchaser. [Liquor Control and Licensing Act, section 38(2); Liquor Control and Licensing Regulation, section 61] 15.6 Sale of non-liquor items The licensees of licensee retail stores may make food or non-alcoholic beverages available to customers. If offered, food and items other than liquor sold in licensee retail stores must be limited to: packaged snacks and sundries liquor related items, such as glasses, openers and corkscrews, cigarettes and other tobacco products, and lottery products licensed by the B.C. Lottery Corporation. [Liquor Control and Licensing Act, sections 12(3)(e), 14(1)(d) and 50(2)] 15.7 Licensee contests LRS licensees may host contests on their premises on their own, with a manufacturer or agent or with some other third party. The following conditions apply: Liquor or other purchases are not a condition of contest entry an entry fee is not charged liquor is not offered or given as a prize SECTION 15 – LICENSEE RETAIL STORES Page 6 Liquor Licensing Policy Manual a winner does not need to be present in order to be eligible for any prizes or awards licensees may include contest entry forms in print ads or may mention where entry forms are available in any advertising licensees, their employees, and their immediate family members are not eligible to enter or win a contest, and such other conditions as may be in the public interest. [Liquor Control and Licensing Act, sections 12(3)(e) and 50(2); Liquor Control and Licensing Regulations, section 46(1), 50.1 and 57; Liquor Control and Licensing Branch Policy] 15.7.1 Liquor manufacturer contests The following conditions apply to contests held by liquor manufacturers or their agents in LRS: the manufacturer/agent must follow the Liquor Distribution Branch guidelines outlined in the Beverage Alcohol Promotions Program for BC Liquor Stores booklet the manufacturer/agent must conduct the contest, install all promotional items, and remove all promotional items within 10 days after the contest has ended the manufacturer/agent must record the name of anyone who wins a prize valued at over $100.00 unless the liquor manufacturer/agent has also received approval from the Liquor Distribution Branch to offer the same contest in government liquor stores, the contest details must be documented in a buy-sell agreement described in policy 12.1.4 licensees, manufacturers, their employees, Liquor Distribution Branch, Liquor Control and Licensing Branch employees, and immediate family members of anyone in these groups are not eligible to enter or win a contest, and such other conditions as may be in the public interest. [Liquor Control and Licensing Act, sections 12(3)(e) and 50(2); Liquor Control and Licensing Regulations, section 46(1), 50.1 and 57] 15.8 Value-Added Promotions in Licensee Retail Stores Licensee retail store licensees may accept value-added promotional items from liquor manufacturers and their agents to offer to their customers. Value-added promotional items not simultaneously being offered in a government liquor store must be recorded in a buy-sell agreement as per policy 12.1.4. Value-added promotional items must be of nominal value, not exceeding 20 per cent of the retail price of the base product and may include: “on-packs,” where a liquor-related or branded item such as a corkscrew is attached to a bottle or case of liquor (a small bottle of liquor may be attached only when the promotion is also running in a government liquor store for the same promotion period) “in-packs,” where an item other than liquor, such as a T-shirt, is included inside a case of liquor, and “near-packs," where an item other than liquor, such as a bag of chips, is placed near or alongside a liquor product and is given away whenever that product is purchased third-party coupons attached to a liquor product by a neck tag or back label, or placed inside a case, provided they are not for a rebate or reduction on the purchase price of a liquor product, for a free liquor product of any kind, or for cash. The following conditions apply to value-added promotions in licensee retail stores: LRS licensees may keep leftover items at the end of the promotional period and continue to offer them to their customers until they are gone; but must not retain items for personal use or future promotions promotions must follow the Liquor Distribution Branch guidelines outlined in The Beverage Alcohol Promotions Program for BC Liquor Stores booklet both the licensee and manufacturer /agent may advertise promotions SECTION 15 – LICENSEE RETAIL STORES Page 7 Liquor Licensing Policy Manual [Liquor Control and Licensing Act, sections 45 and 52(5); Liquor Control and Licensing Regulation, section 50.1] 15.8.1 Redemption of product vouchers Licensee retail store licensees may enter into an agreement to honour a manufacturer’s product voucher. The following conditions apply: product vouchers must not exceed these size limits: o distilled spirits – smallest available size per product (not exceeding 1.14 litres) o wine – smallest available size per product (not exceeding two litres) o Beer/cider/coolers – one dozen smallest available size bottles or cans (total not exceeding four litres) The manufacturer/agent must pay the licensee the full retail price for the quantity of liquor specified on the voucher, and The licensee is not permitted to charge or receive a redemption fee from the manufacturer/agent. [Liquor Control and Licensing Act, sections 45 and 52(5); Liquor Control and Licensing Regulation, section 50.1] 15.9 Consumer taste trials The following conditions apply to the conduct of consumer taste trials in licensee retail stores: the taste trial can be offered by the licensee or by a manufacturer/agent the licensee may charge an attendance fee for the event the time and length of a taste trial is within the discretion of the licensee and manufacturer/agent, but all tasting must end thirty minutes before the store’s closing time only one consumer taste trial may be conducted in a store at any one time personnel used to serve beverage samples during a consumer taste trial hosted by a licensee may be store staff or hired servers personnel used to serve beverage samples during a consumer taste trial hosted by a manufacturer are provided by the manufacturer and may either be a licensed agent of the manufacturer or a server hired by the manufacturer/agent who is familiar with the rules governing consumer taste trials demonstrations of food and wine pairing or other types of food preparation demonstrations are permitted provided: o food ingredients or final product are not for sale o primary function of the establishment remains that of a retail outlet o licensee complies with rules respecting consumer taste trials when beverage samples are also served, and such other conditions as may be considered appropriate by the general manager. [Liquor Control and Licensing Regulation, section 14(1)(g)] 15.9.1 Maximum sample quantities Free samples are permitted during consumer taste trials provided they are served in small quantities using plastic glassware, and provided the maximum quantities allowed to each consumer for each sample at the consumer taste trial are: Single Product Multiple ProductF1 Wine 20 ml 30 ml Beer/Cider/Cooler 30 ml 45 ml Spirits 10ml 20ml 1 Quantities for multiple product tasting apply only where more than one product is being presented at any one time by a single supplier. The quantity for multiple products is a total of all products offered. SECTION 15 – LICENSEE RETAIL STORES Page 8 Liquor Licensing Policy Manual [Liquor Control and Licensing Regulations, section 14(1)(g)] 15.10 Employee tastings LRS licensees may conduct tastings using product samples to acquaint employees with products to be offered for sale in the LRS. Employee tastings must be conducted outside the licensed area . For more information on product samples, please see section 12.5.2. [Liquor Control and Licensing Act, section 45; Liquor Control and Licensing Regulations, section 14(1)(g) and section 50.1] 15.11 Temporary de-licensing Temporary de-licensing for alternate use is not permitted in an LRS. [Liquor Control and Licensing Act, section 6(c) and 12(2)(b); Liquor Control and Licensing Regulations, section 44(2)] 15.12 Appendix 1: History of the LRS model The following gives a summary of the LRS licensing model since its inception in 1985. When the LRS model was introduced, in order to operate an LRS the licensee was also required to own and operate a qualifying liquor primary (LP) establishment. The model has evolved significantly over time and different rules may apply to licences that were issued at different times. 1985 Licensee retail stores introduced as an extension of off-sales privileges for hotels and various types of pubs only. Product limited to BC beer, wine, cider and coolers. 1988 Stores had to be attached or adjacent to licensed hotels or pubs. Separate Licence Class – “G” (LRS) and “H” (non-conforming LRS) class introduced and shortly thereafter restricted to full service hotels only. 1988 – 91 Product selection gradually increased to include foreign product. 1992 Regulations amended to prevent new LRS applications from being accepted. 2002 290 LRS’s existed in the province. Apr 2002 LRS’s permitted to sell spirits. Size of LRS’s increased from 1000 to 2000 sq ft upon application. Could be open on Christmas Day. June 2002 LRS’s permitted to sell lottery products. Aug 2002 Moratorium lifted for period from August 12, 2002 to November 29, 2002. Eligibility limited to existing pub, hotel, and cabaret licensees, or those with complete applications in place as of August 12, 2002. LRS must be on or appear to be on same property as liquor primary establishment. No provision for local govt input but subject to appropriate zoning being in place. SECTION 15 – LICENSEE RETAIL STORES Page 9 Liquor Licensing Policy Manual Aug 2002 LRS’s can sell near packs (gifts with purchase) approved by LDB. Nov 2002 LRS’s and LP’s can apply to relocate to any place within the province but must move together. 525 applications received by time moratorium again came into place. Apr 2003 2000 sq ft size restriction removed. Regulations amended to confirm that the LRS can only operate if the qualifying liquor primary establishment is open and operating. LRS must not appear to be a standalone liquor store nor appear to be associated with another business in the vicinity. Physical layout of LRS: you can’t split an LRS licence in two but you can have a dedicated room for a product line within the LRS. Nov 2003 LRS’s can apply to relocate their store away from their adjoining liquor primary establishment (or vice versa), but the regulations continue to stipulate that the LRS and the qualifying LP must be owned by the same person. An LRS may now move to any location within the local government or first nations’ jurisdiction provided the distance from the original site is not more than 5 km (as the crow flies). In either case, the proposed site must be properly zoned for an LRS. Zoning is required, but there is no provision for local government input. Relocations of liquor primary establishments is restricted to locations within the same community, which is a narrower definition than the same local government jurisdiction, which has implications for LRS’s and LRS applications. No off-site storage allowed for LRS’s. LDB increases LRS purchasing discount rate to 12%. Apr 2004 Policy directive sent to all LRS applicants setting time frames for completing LRS applications; termination dates set out. May 2004 LRS Relocation Criteria changed to implement a distance criterion of 0.5 kms between a proposed site for relocation with another LRS application or existing LRS, unless otherwise approved by the general manager; policy subsequently incorporated into the regulations in August 2004. Solicitor General wrote to liquor industry saying moratorium on any new LRS’s would remain in place for a minimum of four years to allow industry to stabilize. Jan 2005 LRS’s allowed to have consumer tastings and test kitchens in their premises. Apr 2005 LDB increases LRS liquor purchase discount rate to 13%. Jan 2007 LDB increases LRS liquor purchase discount rate to 16%. SECTION 15 – LICENSEE RETAIL STORES Page 10 Liquor Licensing Policy Manual June 2007 An LP licence that is suspended or cancelled as a result of a suspension or cancellation of a municipally, regionally, provincially or federally granted licence, permit or certificate may result in the general manager taking enforcement action against the licensee. If the general manager suspends an LP licence the licensee has 30 days to provide evidence of having acquired the necessary licence, permit or certificate otherwise the LRS licence is suspended for the same period as the LP. If LP licence is cancelled the associated LRS will also be cancelled. LRS applicants are permitted a maximum of two relocation applications without licensing unless otherwise approved by the general manager. Nov 2007 General Manager wrote to liquor industry saying moratorium on any new LRS’s would remain in place for the foreseeable future. Dec 2009 The requirement that an LRS licensee also own and operated a LP is eliminated. The status of the LRS is no longer dependent on the status of the associated LP. Relocation policy for LRS is no longer tied to the location of the LP but is instead based upon the current location of the LRS. An LRS may relocate to another location within the same LG or FN jurisdiction or up to 5 km from the site of the existing LRS, but must continue to be located at least .5 km from another existing or proposed LRS. Existing associations between an LRS and an associated LP, LRS or licensed hotel (including associated FP) approved prior to Dec 2 are grandfathered. Feb 2010 0.5 km separation requirement for relocation of LRS increased to 1.0 km. Requirement that LRS may not appear to be associated with another business in the near vicinity expanded to prohibit LRS from appearing to be associated with another business no matter where they are located, since LRS are no longer required to be physically linked to an associated LP. July 2012 LRS Moratorium continued by regulation until at least July 1, 2022. Jan 2013 The circumstances under which an LRS may be relocated to within 1 km of another LRS are now specified in regulation. SECTION 15 – LICENSEE RETAIL STORES Page 11 Liquor Licensing Policy Manual 15.13 Appendix 2: Summary of permitted and prohibited associations for licensee retail stores upon transfer of ownership, relocation, or structural change Location and Physical Requirements Naming and Appearance Separation of Business Requirements Advertising and Promotional Requirements Use of existing common staff door Common liquor storage Use of common name and other visual identifiers Maintain separate business and financial records Operate LRS as a loss leader Joint advertising and promotions with LP or another LRS May continue where currently exists May continue where currently exists Permitted Not required Not permitted Permitted N/A N/A Permitted Not required Not permitted Permitted May continue where currently exists Not permitted Permitted Required Not permitted Permitted N/A Not permitted Permitted Required Not permitted Permitted If same owner Not permitted Not permitted Permitted Not required Not permitted Permitted If different owner Not permitted Not permitted Permitted Required Not permitted Permitted N/A N/A N/A N/A N/A LP and LRS are side by side May continue where currently exists LP and LRS are not side by side N/A N/A N/A N/A N/A N/A TRANSFER OF OWNERSHIP If LRS and LP transferred together (same owner), and LRS and LP are side by side LRS and LP are not side by side If LRS or LP transferred separately (different owner), and LRS and LP are side by side LRS and LP are not side by side RELOCATION STRUCTURAL CHANGE If same owner or different owner, and SECTION 15 – LICENSEE RETAIL STORES Page 12 Liquor Licensing Policy Manual SECTION 16: Wine Stores 16.0 Introduction This section provides an overview of the history, legislation, regulations, and policy specific to wine stores that is not contained elsewhere in the manual. 16.1 Wine Store Licence All wine store licensees were once operated by appointments made under section 18(5) of the Liquor Distribution Act. Over the years the Liquor Distribution Branch (LDB) approved a series of unique wine store models, largely to promote the budding BC wine industry. In 2007, a transition began to shift oversight of all private liquor retailing from the LDB to the Liquor Control and Licensing Branch (LCLB). In 2013, an important step in this transition was completed by converting the wine store appointments to licences under the Liquor Control and Licensing Act and regulations. This allows for a more equitable regulatory oversight of all liquor retail outlets. There are several different types of wine stores: Vintners’ Quality Alliance [VQA] stores, which are authorized to sell only BC VQA bottled wine; Winery-operated stores, which are authorized to sell only wine from their associated winery; Independent wine stores, which are authorized to sell all types of wine; Tourist wine stores, which are authorized to sell only 100% BC wine; and Sacramental wine stores, which are authorized to sell only sacramental wine and may sell that wine only to ministers of religion and to other bonafide suppliers affiliated with religious organizations (please see section 7.8 for more information on sacramental wine). Although all of the 5 types of wine stores are considered the same licence type, their general operating terms and conditions remain unchanged from the model that previously existed under the LDB appointment structure. Like an LRS, these wine stores are authorized to sell only packaged wine for consumption off the premises. Wine stores are also generally required to be standalone businesses which must not appear to be associated with any other business, however, when wine store appointments were transitioned to licences there were several exceptions in place to the standalone requirement (e.g. sacramental wine stores, tourist wine stores), which were allowed to continue to operate as they were. On-site stores, located at the same site as the winery, distillery or brewery, are discussed in section 17.20.1. [Liquor Control and Licensing Act, section 12, Liquor Control and Licensing Regulations, section 14.1] 16.2 Moratorium on new licences No new applications for wine stores are being accepted and no new licences will be issued. [Liquor Control and Licensing Regulations, sections 14.1(7)] 16.3 Valid interest and management contracts with third parties Due to pre-existing arrangements from the time when VQA wine stores were regulated under the Liquor Distribution Act, VQA wine stores are not required to maintain valid interest in the wine store business or establishment. This model was developed prior to the transfer of authority for wine stores from the Liquor Distribution Branch to the Liquor Control and Licensing Branch and has been permitted to continue. In this case, the BC Wine Institute acts as the licensee and is responsible for the operation of VQA stores, which are run by third party operators selected by the BC Wine Institute. SECTION 16 – WINE STORES Page 1 Liquor Licensing Policy Manual All other types of wine stores are required to maintain valid interest in the establishment. For more information on management contracts with third parties and maintaining valid interest in an establishment, please see section 4.5. [Liquor Control and Licensing Act, section 16(1)(b) and (c), section 17(1) and (2); Liquor Control and Licensing Regulations, sections 4(1) and 14.1(6)] 16.4 Structural changes and relocations Please see section 4.4 for general information on relocations, including wine stores. Please see section 6.2 for general information on structural change applications, including wine stores. 16.4.1 Structural changes Structural changes are defined in s. 6.2.1. Where a wine store proposes to move to an address at the same site and within the existing building (with the same parcel identifier number) or to a location that is attached to or abutting the existing building, this is considered a structural change application. An application by a wine store proposing to move from one unit to another unit with a different parcel identifier number in the same building structure (e.g. a shopping mall) is considered a relocation and is subject to policy 16.4.2 Relocations) below. [Liquor Control and Licensing Act, section 6(c), 20(1)(e) and 21(3), Liquor Control and Licensing Regulations, section 6(1) through 6(3), and 7] 16.4.2 Relocations Relocations are defined in section 4.4 and 4.4.2. A wine store may apply to relocate their store anywhere in the province, subject to local zoning requirements. Relocation applications are subject to standalone policy (see section 16.5). [Liquor Control and Licensing Regulations, section 14.1 (2) and 38] 16.4.3 Plans approval guidelines There are no size restrictions on wine stores. Inside the store, there may be more than one room or level. A determination of occupant load is not required. Drive-through windows are not permitted. Staff will complete the following in approving plans for a wine store relocation or structural change: Review for compliance with separation of business policy (see section 16.5) Identify non-public access areas (offices, service counters, storage facilities/coolers) on floor plans and blue line public access areas only (e.g. customer areas, walk in coolers), and Review to ensure no drive-through window is proposed. [Liquor Control and Licensing Regulation, sections 5, and 6(1) through (3)] 16.5 Standalone Policy 16.5.1 Permitted business associations Wine stores are permitted to appear to be associated with a winery and any other wine store owned by the same legal entity, as long as the appearance of association was in existence prior to February 1, 2013. SECTION 16 – WINE STORES Page 2 Liquor Licensing Policy Manual In addition, wine stores whose location was approved and/or whose store was associated or appeared to be associated with another business that was approved prior to February 1, 2013 are permitted to continue the association as long as the business remains in the same location. Sacramental wine stores are permitted to be associated with and/or located in religious supply stores. Wine stores must not appear to be associated with any another business unless approved by the general manager, similar to the requirements for licensee retail stores. [Liquor Control and Licensing Regulations, section 14.1(2), (3) and (4)] 16.5.2 Standalone requirements for wine stores and approved associated businesses 1. Location and Physical Requirements Wine store locations approved by the general manager may continue; and Wine product must be stored on site, with the exception of wine stores associated with a winery, who may store product at the associated winery providing the licensee ensures that the liquor purchased under the wine store licence is physically separate, clearly labelled, and clearly identifiable to any reasonable person. Off-site wine storage is not permitted for any other type of wine store. 2. Naming and Appearance Requirements Wine stores may use a common name and other visual identifiers (e.g. logos, trademarks, signage, colour schemes) of the associated winery, or wine store(s) owned by the same legal entity. Sacramental wine stores may use a common name and other visual identifiers of the associated religious supply store. Tourist wine stores and winery-operated stores may use a common name and other visual identifiers of the associated business. 3. Separation of Business Requirements Wine stores must maintain and have available upon request separate business and financial records (e.g. bank accounts, credit accounts) for each liquor licence; and Wine stores must not operate as a loss leader in support of any other business. 4. Advertising and Promotional Requirements Joint advertising and promotions between wine stores and associated businesses are permitted. The wine store may: o Conduct joint advertising with the associated business; o Offer discounts by or in a wine store, based on purchases in the associated business; o Offer gift cards that are associated with or redeemable by the associated business; and o Operate a customer loyalty program with the associated business. [Liquor Control and Licensing Regulations, section 14.1(2), (3) and (4)] 16.5.3 Standalone requirements for wine stores not associated with another business Except for permitted associations outlined in 16.5.2, wine stores may not appear to be associated with any other business, and the following requirements apply: 1. Location and Physical Requirements Wine stores must be located in: o A permanent, free standing building that does not contain another business; or o If in a building in which there are other businesses, there must be a solid, fixed and immoveable floor-to-ceiling wall between the wine store and any other business. SECTION 16 – WINE STORES Page 3 Liquor Licensing Policy Manual A separate and dedicated public entrance must be maintained for the wine store, with no public entrance to any adjoining facility, although a wine store may share a common public thoroughfare such as a lobby with an adjoining business or facility; Common staff door links with any other business are not permitted; and Common liquor storage areas with any other business are not permitted. 2. Naming and Appearance Requirements A wine store may not use a name or other visual identifier (e.g. logos, trademarks, signage, colour schemes) of another business. 3. Separation of Business Requirements Wine stores must maintain and have available upon request separate business and financial records (e.g. bank accounts, credit accounts) for each liquor licence; and A wine store must not operate as a loss leader in support of any other business. 4. Advertising and Promotional Requirements Selling trademarked or brand name non-liquor products of another business is prohibited in a wine store, unless these products are also available for wholesale purchase by other licensees and do not share the other business name. A wine store may advertise the products sold in the wine store, but joint advertising involving a wine store and another business is prohibited. Offering discounts by or in a wine store based on purchases in another business is prohibited. Gift cards may not be associated with or redeemable by another business. Operating a customer loyalty program in a wine store which recognizes purchases made in another business is prohibited. [Liquor Control and Licensing Regulations, section 14.1(2), (3) and (4)] 16.6 Ownership Transfers For general information on ownership transfers and tied house requirements, please see sections 3 and 4 of this manual. 16.6.1 VQA wine store licences not transferable BC VQA wine store licences held by the BC Wine Institute are not eligible to transfer the licence(s) to a new owner. [Liquor Control and Licensing Act, section 21(1); Liquor Control and Licensing Regulation s. 17(1), 21(1) and (3)] 16.6.2 Winery-operated wine stores Ownership transfers for winery operated wine stores are prohibited unless the winery and any winery operated wine store(s) are being sold together to the same legal entity. [Liquor Control and Licensing Act, section 21(1)] 16.7 Signage and advertising In signage and advertising for wine stores, the following conditions apply: The words “B.C.”, “British Columbia” or, “government”, may not be used to avoid confusion with the names used by the Liquor Distribution Branch; and Signs and advertisements may not use pictures of minors, personalities, images or activities that may appeal to minors. SECTION 16 – WINE STORES Page 4 Liquor Licensing Policy Manual Sacramental wine stores are permitted to advertise to members of the clergy or ministers of religion and are prohibited from advertising to the public. [Liquor Control and Licensing Act, sections 49(3) and 51.1; Liquor Control and Licensing Regulations, sections 56 and 57] 16.8 Conditions for wine sales 16.8.1 Types of wine sold Wines stores are licensed to sell only wine and the sale of any other types of liquor is prohibited. Wine refers to a range of products, including: Table wine (red, rose, and white); Sparkling wine and crackling wine; Fortified wine, including sherry and port; Mead; Rice wine (sake); and Cider and wine coolers. The specific types of wine which may be sold under the different types of wine store licence are as follows: VQA (Vintners’ Quality Alliance) wine stores may sell only BCVQA certified wine acquired from BC wineries (the VQA designation refers to wine that is certified under the Wines of Marked Quality Regulation); Independent wine stores may sell all types of wine; Tourist wine stores may sell only 100% BC wine; Winery-operated wine stores may sell only wine from the winery or wineries they are associated with; and Sacramental wine stores may sell only sacramental wine. [Liquor Control and Licensing Act, sections 6(c) and 12(3)(a), Liquor Control and Licensing Regulations, section 14.1(1)(a)] 16.8.2 Purchase of wine Wine stores must purchase wine from the Liquor Distribution Branch or from a licensed BC winery, with the exception of sacramental wine stores, which may purchase wine from another person designated by the Liquor Distribution Branch. Winery-operated wine stores may purchase liquor only from the associated winery. [Liquor Control and Licensing Act, section 38(3)(a); Liquor Control and Licensing Regulations, sections 35(1) and 14.1(5)] 16.8.3 Wine sales and prices Liquor prices in wine stores must be set at or above the Liquor Distribution Branch (LDB) purchase price of the liquor, must include the provincial sales tax and must be displayed prominently. Wine store operators are permitted to adjust their prices at anytime throughout the business day. Wine stores may sell wine to the general public, with the exception of sacramental wine stores. Sacramental wine stores may only sell wine to members of the clergy for their use in sacramental ceremonies conducted by persons authorized to preside at such ceremonies in a place of worship such as a church, temple or synagogue. Ceremonies do not include social occasions associated with, or ancillary to, religious ceremonies whether held on or off church or synagogue premises. Those occasions include, but are not limited to: wedding receptions; baptisms; confirmations; communions; bar/bat mitzvahs; and ordinations. SECTION 16 – WINE STORES Page 5 Liquor Licensing Policy Manual All purchase and sales transactions must be conducted in the licensed establishment. Liquor may not be taken off the premises for sampling or sale. [Liquor Control and Licensing Regulations, section 41(3), Liquor Distribution Act, section 8(1)] 16.8.4 Games and entertainment No games or entertainment (including adult entertainment, audio, film, video and television) are permitted in wine stores. [Liquor Control and Licensing Regulations, section 14.1(1)(e)] 16.8.5 Hours of Sale Subject to limitation by the general manager, the hours of sale for a wine store are between 9:00 a.m. and 11:00 p.m. [Liquor Control and Licensing Regulations section 14.1(1)(b)] 16.8.6 Minors on premises Minors are permitted in wine stores if they are accompanied by a parent or guardian who is shopping. A minor may not be employed in any capacity in a wine store. Minors are permitted without a parent or guardian in sacramental wine stores and tourist wine stores. For full details on minors in licensed establishments and the identification of minors please refer to s. 10. [Liquor Control and Licensing Act, section 35; Liquor Control and Licensing Regulations, section 14.1(1)(c) and 14.1(5)] 16.8.7 Outdoor Patios Outdoor patios are not permitted in wine stores. Wine stores are licensed only for the sale of packaged wine which is to be consumed off the premises. [Liquor Control and Licensing Act, section 12(3)(b)] 16.8.8 Wine delivery Wine stores may offer delivery of the wine products they are authorized to sell to the public, as long as they are in compliance with the following terms and conditions: Wine can only be sold and delivered to individuals 19 years of age or older. When proof of age is required, customers must show two pieces of identification at the time of delivery. One of those pieces must be a government issued identification card such as a driver's licence with photo, name and birth date. The other piece must contain the person's name along with a signature or picture; Delivery to an intoxicated person or someone under the influence of drugs is prohibited; Delivery must end no later than one half hour after the wine store closing time; Only regularly stocked wine products that are available for purchase by walk in customers may be delivered; Delivery charges must include the regular retail price of the wine plus a separate delivery charge and customers must be informed of both charges when they place an order; Delivery must take place from the wine store only; and Delivery transaction records must be maintained for at least three years. These must include the date, time and address of each delivery, the products purchased, the prices charged, delivery fees , total amount paid and the name of the purchaser. [Liquor Control and Licensing Act, section 38(2)]; Liquor Control and Licensing Regulation, section 61] SECTION 16 – WINE STORES Page 6 Liquor Licensing Policy Manual 16.9 Sale of non-wine items All wine stores may sell non-wine products that have been approved by the Liquor Control and Licensing Branch. These approved products include: items specifically identified with storing or serving wine, such as wine racks and cabinets, ice buckets and chillers, wine glasses and corkscrews; printed materials such as books and pamphlets concerning wine in general or specific wines that are sold in the store; items that identify wine products for sale in the store, such as umbrellas, T-shirts and aprons; packaged snack food items, and other wine-related food items such as cheese and crackers; wine-related soft drinks and juices, such as club soda for spritzers; de-alcoholized wine; and lottery products licensed by the B.C. Lottery Corporation. Wine stores may not sell: confectionary items such as candy, gum, potato chips, etc., or tobacco products In addition, tourist wine stores are permitted to sell other tourist-related items, and winery-operated wine stores, which unlike other wine stores are often located within another store, may sell products related to the associated business, such as artisanal foodstuffs. Sacramental wine stores located in religious supply stores may sell other items related to the religion. [Liquor Control and Licensing Regulations, sections 14.1(1)(d), 12(3)(e) and 50(2);] 16.10 Licensee contests Wine store licensees may host contests on their premises on their own, with a manufacturer or agent or with some other third party. For full details, please see section 11. 16.10.1 Liquor manufacturer contests The following conditions apply to contests held by liquor manufacturers or their agents in wine stores: the manufacturer/agent must follow the Liquor Distribution Branch guidelines outlined in the Beverage Alcohol Promotions Program for BC Liquor Stores booklet the manufacturer/agent must conduct the contest, install all promotional items, and remove all promotional items within 10 days after the contest has ended the manufacturer/agent must record the name of anyone who wins a prize valued at over $100.00 unless the liquor manufacturer/agent has also received approval from the Liquor Distribution Branch to offer the same contest in government liquor stores, the contest details must be documented in a buy-sell agreement described in policy 12.1.4 licensees, manufacturers, their employees, Liquor Distribution Branch, Liquor Control and Licensing Branch employees, and immediate family members of anyone in these groups are not eligible to enter or win a contest, and such other conditions as may be in the public interest. [Liquor Control and Licensing Act, sections 12(3)(e) and 50(2); Liquor Control and Licensing Regulations, section 46(1), 50.1 and 57] 16.11 Value-Added Promotions in wine stores Wine store licensees may accept value-added promotional items from liquor manufacturers and their agents for offer to their customers. Value-added promotional items not simultaneously being offered in a government liquor store must be recorded in a buy-sell agreement as per policy 12.1.4. SECTION 16 – WINE STORES Page 7 Liquor Licensing Policy Manual Value-added promotional items must be of nominal value, not exceeding 20 per cent of the retail price of the base product and may include: “on-packs,” where a liquor-related or branded item such as a corkscrew is attached to a bottle or case of liquor (a small bottle of liquor may be attached only when the promotion is also running in a government liquor store for the same promotion period) “in-packs,” where an item other than liquor, such as a T-shirt, is included inside a case of liquor, and “near-packs," where an item other than liquor, such as a bag of chips, is placed near or alongside a liquor product and is given away whenever that product is purchased third-party coupons attached to a liquor product by a neck tag or back label, or placed inside a case, provided they are not for a rebate or reduction on the purchase price of a liquor product, for a free liquor product of any kind, or for cash. The following conditions apply to value-added promotions in wine stores: wine store licensees may keep leftover items at the end of the promotional period and continue to offer them to their customers until they are gone; but must not retain items for personal use or future promotions; promotions must follow the Liquor Distribution Branch guidelines outlined in The Beverage Alcohol Promotions Program for BC Liquor Stores booklet; and both the licensee and manufacturer/agent may advertise promotions [Liquor Control and Licensing Regulation, section 50.1; Liquor Control and Licensing Branch Policy] 16.11.1 Redemption of product vouchers Wine store licensees may enter into an agreement to honour a manufacturer’s product voucher. The following conditions apply: product vouchers must not exceed the smallest available size per product (not exceeding two litres); The manufacturer/agent must pay the licensee the full retail price for the quantity of liquor specified on the voucher; and The licensee is not permitted to charge or receive a redemption fee from the manufacturer/agent. [Liquor Control and Licensing Act, sections 45 and 52(5); Liquor Control and Licensing Regulation, section 50.1; Liquor Control and Licensing Branch Policy] 16.12 On-premises wine consumption Consumption of wine or any other liquor within a wine store is prohibited, except for consumer tasting purposes and product sampling by staff. FF [Liquor Control and Licensing Regulations, section 14(1)(f).] 16.12.1 Consumer taste trials Consumer taste trials must be conducted inside the licensed establishment. Wines for tasting purposes must not be taken off the premises. The following conditions apply: the taste trial can be offered either by the licensee or by a manufacturer/agent; the time and duration of a taste trial is at the discretion of the licensee and manufacturer/agent, but all tasting must end thirty minutes before the store’s closing time; only one consumer taste trial may be conducted in a store at any one time; personnel used to serve beverage samples during a consumer taste trial hosted by a licensee may be either store staff or hired servers; personnel used to serve beverage samples during a consumer taste trial hosted by a manufacturer are provided by the manufacturer and may either be a licensed agent of the manufacturer or a server hired by the manufacturer/agent who is familiar with the rules governing consumer taste trials; SECTION 16 – WINE STORES Page 8 Liquor Licensing Policy Manual demonstrations of food and wine pairing or other types of food preparation demonstrations are permitted provided: o food ingredients or final product are not for sale (the licensee may charge an attendance fee for the event); o primary function of the establishment remains that of a retail outlet; and o licensee complies with rules respecting consumer taste trials when beverage samples are also served. [Liquor Control and Licensing Regulations, section 14(1)(g)] 16.12.2 Employee tastings Wine store licensees may conduct tastings to acquaint employees with products to be offered for sale in the wine stores. Employee tastings must be conducted outside the licensed area . For more information on product samples, please see section 12.5.2. Wine sample sizes for employee tastings must be consistent with “tasting” and not be misconstrued with providing wine by the glass. 16.13 Temporary de-licensing Temporary de-licensing for alternate use is not permitted in a wine store. [Liquor Control and Licensing Act, section 6(c) and 12(2)(b); Liquor Control and Licensing Regulations, section 44(2)] SECTION 16 – WINE STORES Page 9 Liquor Licensing Policy Manual SECTION 17: Manufacturer Licences 17.0 Introduction The Liquor Control and Licensing Act stipulates that anyone manufacturing liquor for sale in British Columbia must have a licence issued by the general manager of the Liquor Control and Licensing Branch. The government of Canada also requires distilleries, wineries and breweries obtain a federal licence to manufacture liquor and wineries who fortify their wines with grain alcohol to obtain a user licence. This section provides an overview of the legislation, regulations, and policy specific to all manufacturers not contained elsewhere in this manual. There are some minor differences in requirements for breweries, distilleries and wineries. Any unique policies are identified as such. Information on general licensing procedures which also apply to manufacturers is contained in section 3 entitled “Licensing Process”. Information on business ownership and changes to a licence which also apply to manufacturers is contained in section 4 entitled “Business Ownership and Changes to a Licence”. Information on structural changes which apply to manufacturers is in section 6.2 and information on relocations is in section 4.4 of this manual. 17.1 Definition of “Manufacturing” The “manufacture” of liquor is defined by the regulations as including one or more activities related to the brewing, distilling, and fermenting of liquor, and includes packaging, blending, and flavouring. Accordingly, anyone performing one or more of these manufacturing activities must obtain a British Columbia manufacturer licence. Sale of liquor in British Columbia is prohibited without a licence. A person producing or manufacturing wine, beer, or cider in a private residence or in a licensed UBrew/UVin establishment for personal consumption or for consumption at no charge by others does not require a manufacturer licence. Federal and BC law prohibits the at-home manufacture of spirits. [Section 55, 57, Liquor Control and Licensing Act, Section 1, Liquor Control and Licensing Regulations] 17.2 Manufacturer Licence Anyone wanting to produce or manufacture liquor containing more than 1% alcohol by volume for sale is required to have the appropriate manufacturer licence. Manufacturer licences are issued to: Revised June 2013 wineries for the manufacture of aperitif wine, dessert wine, flavoured wine, fruit wine, mead, Asian wine, sake, ice wine, table wine, sparkling wine, cider, wine coolers (made by fermenting grapes or fruit or any other agricultural product) and other similar products. This includes fortified wines (wine to which spirits are added) such as port, sherry, mantilla, madeira and vermouth; distilleries for the manufacture of spirits, including whisky, gin, rum, vodka, tequila, cachaca, Asian spirits, spirit coolers, products such as brandy that are manufactured by distilling wine, armagnac, cognac, eau de vie, liqueurs and other similar products; and breweries for the manufacture of malt liquor (beer). Although some movement of product between licensed manufacturers is permitted, a manufacturer must have facilities and equipment on the premises to manufacture a sizeable amount of their registered products at their licensed manufacturing site. It is contrary to the intent of the licence to manufacture only a token amount on site in order to maintain a retail or on-premise consumption endorsement. SECTION 17 – MANUFACTURER LICENSES Page 1 Liquor Licensing Policy Manual The holder of a manufacturer licence may apply for an endorsement which authorizes the sale of the product to the public from one on-site store located on the manufacturing site or by internet. A licensed manufacturer may also operate sampling room(s) at the manufacturing site where product samples may be offered to the public and apply for endorsements to operate a lounge and/or separate areas designated for special events, picnics and tours (these are discussed in detail later in this section). [Liquor Control and Licensing Act section 1(2), section 55, 57, 84, Liquor Control and Licensing Branch Policy] 17.3 Additional conditions for winery licensees only 17.3.1 Annual production requirements for wineries Once the winery licence has been issued, a licensee must manufacture (including fermentation) at least 4,500 litres of wine each year on site. Total production is reported on Winery Annual renewal form. The licensee must maintain records of liquor purchases, sale, production, disposal, fruit harvested, purchase of grapes or fruit and bulk or bottled wine additives. Records must be available for inspection upon request by the branch. [Liquor Control and Licensing Act, section 58; Liquor Control and Licensing Regulation, s. 16(4), 17 and 34] 17.3.2 Manufacturing wine for another winery A winery may produce wine and sell it to another winery and/or may contract to have their wine made at another winery. In this case the first winery pays the second winery to produce the wine on their behalf and the winery that ultimately owns the product must register it with the Liquor Distribution Branch and record all sales to the public and licensees. Although a portion of a winery’s production may be done by another winery, every winery is still required to produce a minimum of 4,500 litres of wine at their own winery site. Wineries are also permitted to provide bottling or other services for another winery. Some LDB restrictions may apply. [Liquor Control and Licensing Branch Policy] 17.3.4 Manufacturing wine in association with a person who does not hold a winery licence A licensed winery may manufacture wine in association with a person who does not hold a winery licence, and still be compliant with the Liquor Control and Licensing Act and the Liquor Distribution Act, if all of the following conditions are met: The wine is owned by the winery until the winery sells it by the bottle or other packaging to either the public or to other licensed establishments. The wine is registered with the LDB by the winery and all sales to the public and licensees are conducted by the winery. The wine is stored at the winery site or other off-site location(s) approved by the LCLB and is under the care and control of the winery or its agent. Any advertising of the product is conducted by the winery or its agent. Wine produced in this manner may be labelled with names different from the licensed winery and the name trademarks can be held by someone other than the winery. However, it is a condition for any winery engaged in this activity to also include their winery name and location on the wine label in a manner that clearly identifies them as the manufacturer, e.g. “Produced by Smith’s Winery, Oliver BC.” SECTION 17 – MANUFACTURER LICENSES Page 2 Liquor Licensing Policy Manual In regard to marketing the wines, the person who has requested the wine be manufactured may be hired by the winery as a marketing representative under the winery’s agent licence to help market the product. [Liquor Control and Licensing Branch Policy] 17.4 Manufacturer site The manufacturing site is determined by the general manager and would generally include the property owned or leased (valid interest) by the licensee at the time of the licence application. Zoning must be in place to allow manufacturing and retail sales (if applied for) on the proposed site. The site may include: In the case of a manufacturer that has acreage and/or agricultural land, the site may be the contiguous property(s), and may include multiple buildings. To be contiguous no public roads may run through the property. In the case of a manufacturer in a stand-alone building on a property with a small piece of surrounding land, the site may be the building and possibly the associated land. Licensed areas should be contiguous (i.e., an endorsement area should not be separated from the manufacturing facility by a public area, another business or another licensed establishment). In the case of a manufacturer in a building (or commercial unit) with no property, the site may be the footprint of the building (or portion thereof) that contains the manufacturing facility and associated endorsement areas (if applicable). As above, licensed areas should be contiguous. The site impacts the determination of eligibility for an endorsement area and ensures that the manufacturing facility and endorsements all appear to be on the same property, associated with each other, and separate from any other business or licensed establishment. Any modification or expansions that result in a change to the licensed area must be approved by the general manager, and are subject to the same considerations regarding site. General criteria for expansion of a licensed area (such as to increase production capacity, add extra on-site storage or add an endorsement area) require that: the area proposed area is owned or leased by the licensee; the usage for the proposed area is permitted by local zoning; the area proposed for expansion is abutting the original site. [Liquor Control and Licensing Regulation, section 18, Liquor Control and Licensing Branch Policy] 17.4.1 Other liquor licences on the manufacturer site Where a manufacturer is applying for a non-manufacturing licence on the manufacturing site, or the property immediately adjacent to the manufacturing site, the general manager will consider the site factors noted above to determine if the non-manufacturing licence should be considered to be on the same site therefore exempting it from tied house restrictions (see section 3.2.5 for more information regarding tied houses). The following separation requirements apply between licensed manufacturing areas and any other type of licence on site: Separation must always be fixed and immovable, but full height walls are not required (e.g. pony walls would be permitted) with the exception of: o On-site stores must have partial height (minimum 6 ft) walls separating the store from any other non-manufacturing licence on site. o LRSs must have full height walls separating the store from any other type of licence (see section 15 for more information on LRS’s). Entrances may be shared, except for: o An LRS must have its own dedicated entrance. o A food primary cannot be situated such that patrons have to pass through a liquor primary to access it. SECTION 17 – MANUFACTURER LICENSES Page 3 Liquor Licensing Policy Manual Patron access points are permitted between manufacturer licensed areas and other licences on site, except for a LRS, (see section 15 for more information on LRS’s). Kitchen and washroom facilities may be shared. A bar cannot be shared between a liquor primary or a food primary and a licensed area of the manufacturing site such as a tasting room or lounge as there are different rules about the products that can be served. Liquor cannot be carried from one licence to another. Other site considerations for non-manufacturer licences include: A picnic area endorsement cannot be adjacent to a licence other than the manufacturer licence as patrons can only consume liquor from the manufacturer’s licence in the picnic area. Manufacturer licensed areas, including a tour area, cannot overlap any other non-manufacturer licence on the site. [Liquor Control and Licensing Branch Policy] 17.5 Manufacturers located on Agricultural Land Reserve (ALR) Manufacturers applying for a licence in the Agricultural Land Reserve (ALR) must ensure they meet all the requirements of the Agricultural Land Commission Act administered by the Provincial Agricultural Land Commission (ALC). Wineries and cideries located in the ALR may process and store grapes and wine products; carry out retail sales of such products, provide tours and tastings and have a food and beverage service lounge (125m2 inside and 125m2 outdoors) under specified conditions. Breweries and distilleries are not a permitted use in the ALR and require an ALC Act non-farm use application and approval of the ALC for these activities. Food primary and liquor primary licences are not permitted but exceptions are made on a case by case basis by non-farm use application to the ALC. For more information on ALC requirements, please see the ALC website at www.alc.gov.bc.ca. 17.6 Liquor Distribution Branch (LDB) Manufacturer’s Agreement In accordance with the Liquor Distribution Act, the Liquor Distribution Branch (LDB) is responsible for the wholesaling and distribution of all beverage alcohol products in the Province of BC. The LDB authorizes manufacturers to act as agents of the LDB for the purposes of making sales to entities such as bars, restaurants and private liquor retailers. This authorization, which varies by type of manufacturer, is documented in a Manufacturers Agreement between the LDB and the manufacturer. A signed Manufacturer’s Agreement between the manufacturer and the LDB must be in place prior to licensing. For more information, applicants should contact LDB directly (www.bcliquorstore.ca). Compliance with the terms of the Manufacturer’s Agreement is a condition of a manufacturer licence [Liquor Distribution Act, section 5, Liquor Control and Licensing Branch Policy] 17.7 Manufacturer licence application process To apply for a manufacturer’s licence an applicant must: Meet all applicant eligibility requirements (see section 3 of this manual for general information on the licensing process and specific requirements for all licensees). Have a secure on-site storage facility. Have a signed Manufacturer’s Agreement with LDB (Liquor Distribution Branch) in place before the manufacturer’s licence is issued (more information on agreement and LDB requirements at www.bcliquorstore.ca). (Winery only) Hold valid interest (lease or own)in on-site fermentation tanks or barrels, filtering equipment and facilities sufficient to meet the annual minimum production requirements (4,500 litres per year on site), and have the intent to do so. SECTION 17 – MANUFACTURER LICENSES Page 4 Liquor Licensing Policy Manual In addition to the requirements above, an applicant for a manufacturer licence must also submit to the Branch: 1. A business plan, including: financial statements outlining production and sales forecasts for a three year period; a statement of assets and liabilities; and a description of the proposed operation, including manufacturing equipment costs. 2. A detailed site plan of the property, drawn to scale indicating where the proposed manufacturing facility, secure storage and on-site store (if any) will be located. The site plan should identify legal property descriptors, public roads, road access and egress, land used to grow products used in the manufacturing process (such as vineyards, orchards, beehives, etc), parking, and any other buildings or businesses operating on the property. 3. Two large (11” x 17”) scaled floor plans for the proposed manufacturing facility, including the on-site store, indoor sampling rooms, fermentation tanks, manufacturing equipment, secure storage areas, entrances, exits, kettles, filtering equipment, etc. 4. A sketch of proposed exterior signs. A copy of the manufacturer application, floor plans and business plans are provided to the Liquor Distribution Branch as part of the Manufacturer’s Agreement process. Documentation is reviewed by staff and, if all requirements are met, the applicant is granted approval in principle to begin any necessary construction. Once the applicant is prepared to begin manufacturing, a final inspection by a liquor inspector is required before the licence is issued. [Liquor Control and Licensing Act, section 12, 15, 16, 55, 58, Liquor Control and Licensing Regulation, section 4, 16, Liquor Control and Licensing Branch Policy] 17.8 Plans approval guidelines for manufacturer’s licences Staff complete the following when assessing and approving plans for manufacturer applications. On the site plan: Identify the scale of the site plan, all buildings on the property and the nature of surrounding area and properties. Identify the location of agricultural lands (vineyards, hives, etc.) if any, the manufacturing area, onsite store, road access/egress, driveways, public roadways, and the structure and function of any other buildings or businesses on the manufacturing site. Review site considerations to ensure that the manufacturing facility and endorsement areas all appear to be on the same property, associated with each other, and separate from any other business (including licensed establishments owned by a different licensee). Ensure separation (i.e. full height walls) between any other business on the site and the manufacturer facility and endorsement areas (no public connecting doors are permitted). Review plans for separation between manufacturers. Where there are multiple manufacturing licences on the same site with the same licensee there is no requirement to erect walls for separation and the single licensee may share and move equipment between the licensed areas. Where there are different licensees or businesses on the same site there must be physical separation between them (i.e. full height walls). SECTION 17 – MANUFACTURER LICENSES Page 5 Liquor Licensing Policy Manual On the floor plan: Identify the location of entrance and exits, manufacturing equipment and secure storage area(s). Identify the location of the on-site store including location of sales counter/cash register, tasting area, entrance and exit. A manufacturer is permitted one on-site store for each manufacturing licence. Identify the location of sampling rooms (or areas) – there are no limits to the number of sampling rooms but they must be indoors and not on a patio or other outside area. For manufacturers situated on acreage and/or agricultural land, a sampling room or store may be permitted in a separate building on the same site. Ensure the sampling room and the store are located within, or immediately adjacent to, the manufacturing facility. For manufacturers on an acreage and/or agricultural land, the general manager may permit a sampling room or store in a separate building on the same site. In the case of wineries, ensure the presence of fermentation tanks, filtering and other equipment sufficient to meet the annual production requirements. If endorsement areas are proposed: Identify any overlaps of endorsement areas with each other or the sampling area(s). Identify endorsements that serve a single licence and those that serve multiple licences if there are multiple manufacturers on the same site with the same licensee. Identify if the potential exists for the picnic area to become an extension of, or be used by the licensee as, an alternative to a lounge or patio. In this case, ensure the licensee posts signage stating that the sale and service of liquor is not permitted within the picnicking area. Where there are multiple manufacturers on the same site with the same licensee and one manufacturer currently holds a lounge or special event area endorsement(SEA) and is applying for an overlapping lounge or SEA for another licence, ensure the proposed area has the same exact location and hours as the existing endorsement area. Licensed areas are marked on the floor plans as follows: Manufacturing Area(s) including sampling rooms—red lined Store- blue lined Lounge – red-lined Special Event Area – purple-lined Picnicking Area – red-lined Tour Area – orange-lined [Liquor Control and Licensing Branch Policy] 17.9 Manufacturer licence expiry and renewal All manufacturer licences expire annually on March 31. Early each calendar year the Branch sends out renewal notices to all manufacturers which must be completed and returned with payment prior to the expiry date. To renew a manufacturer’s licence an applicant must: Hold a valid licence from the Canada Revenue Agency (CRA). (Winery only) Meet the annual minimum production requirements. [Liquor Control and Licensing Act, section 57] 17.10 Serving it Right requirements for manufacturers A manufacturer licence that includes a facility with a sampling room or an endorsement for a lounge or special event area will not be issued, transferred or renewed unless the “Serving It Right: The Responsible Beverage Service Training Program” has been successfully completed by the applicant or licensee to whom the licence will be issued, renewed, or transferred. SECTION 17 – MANUFACTURER LICENSES Page 6 Liquor Licensing Policy Manual Details of training requirements and exemptions for those who have completed equivalent training in other jurisdictions are discussed in detail in sections 8.4. [Liquor Control and Licensing Act, section 13, Liquor Control and Licensing Regulation, s. 43(2)] 17.11 Agent licence permissions An Agent Licence is issued with the manufacturer licence and permits manufacturers to take orders, conduct tastings, and promote and market their manufactured products away from the manufacturing site. All products that are being promoted or marketed must be registered under the manufacturer’s licence with LDB. There is no fee for an agent licence issued to a manufacturer. [Liquor Control and Licensing Act, section 52, Liquor Control and Licensing Regulation 50.1(2)(b)] 17.12 Signage Manufacturer names must reflect the type of licence they hold and cannot be misleading as to the nature of the business. Signs and advertisements may not use pictures of minors, personalities, images or activities that are appealing to minors. Requirements for signage and advertising are in section 13. 17.13 Contract Packaging (Co-Packing) Under Section 1 of the Liquor Control and Licensing Regulations ‘manufacture’ is defined as including activities such as bottling, blending, and flavouring of liquor. Accordingly, anyone performing these manufacturing activities, commonly referred to as contract packaging or ‘co-packing’, on behalf of a brewery, distillery or winery must obtain a manufacturer’s licence (a sub-category of the distillery licence). If a brewery, winery or distillery chooses to have their products packaged at a separate location from their manufacturing site, the separate location must obtain a manufacturer’s licence for their packaging facility. In a co-packing arrangement the product is always owned by the manufacturer (not the co-packer) and is immediately returned to the manufacturer once the packaging is complete. The licence for co-packers authorizes manufacturing activities limited to the packaging, bottling, blending and flavouring of liquor on behalf of a winery, brewery, or distillery. The licence for co-packers does not authorize the fermenting, distilling or direct sale of liquor. No sampling room or endorsements are permitted. The general manager will impose terms and conditions on the co-packer’s licence that are unique to the co-packaging arrangement in accordance with the requirements of the Act and regulations. It is the responsibility of both the manufacturer (winery, brewery or distillery) and the co-packer to ensure that the other party is licensed by the Liquor Control and Licensing Branch. Both the manufacturer and the co-packer must retain a copy of the other party’s licence and the co-packing contract and agreement as part of their record keeping requirements. Co-packers are also required to obtain a federal manufacturer’s licence and should contact the Canada Revenue Agency (CRA) regional excise duty office for this purpose. [Liquor Control and Licensing Act, section 56, Liquor Control and Licensing Branch Policy] 17.14 Hours of Operation For the purposes of the manufacture of liquor, there are no restrictions on the hours of operation. Hours of operation for an on-site store are between the hours of 9:00 a.m. and 11:00 p.m., or as otherwise indicated on the face of the licence. Hours of liquor service for lounges, special event areas, tour and picnic areas are discussed in the endorsement sections to follow. SECTION 17 – MANUFACTURER LICENSES Page 7 Liquor Licensing Policy Manual For more information on factors considered in setting the hours of sale, variations of hours specified by a local government or First Nation, and changes in hours of operation on the night of a time change, please see section 5. [Liquor Control and Licensing Act, section 12, Liquor Control and Licensing Branch Policy] 17.15 Storage of liquor by liquor manufacturers Manufacturers are permitted to store liquor in approved areas on the manufacturing site and in one or more off-site storage areas provided the location has been approved by the general manager. 17.15.1 Storage at the manufacturing facility On-site storage areas are identified on the red-line floor plan and approved at the time of application. To change or add on-site storage locations a structural change application is required. All liquor stored at the manufacturing site must be adequately secured (i.e. with an alarm system or lock and key). [Liquor Control and Licensing Act, section 58(3)(b) ), section 73(1)(a) and (b) section 84, Liquor Control and Licensing Regulation section 16, Liquor Control and Licensing Branch Policy] 17.15.2 Off-site storage To receive approval for off-site storage locations, manufacturers must apply to the branch for approval of the location, the quantity (in litres) of liquor to be stored at the site, and the security measures in place at the storage site. A list of approved storage sites must be kept with the liquor licence and produced upon request by a liquor inspector or other enforcement officer designated by the general manager. If an approved off-site storage is no longer being used the licensee should advise the Branch. [Liquor Control and Licensing Act, section 58(3)(b), section 73(1)(a) and (b), section 84, Liquor Control and Licensing Branch Policy] 17.16 Minors in manufacturer premises Minors are generally permitted at a manufacturing site. Minors are permitted in sampling rooms, lounge and special event areas, and on-site stores when accompanied by a parent or guardian. Minors are permitted in picnic and tour areas unless otherwise restricted by the general manager. Minors may not be employed to manufacture liquor or to serve liquor in any licensed area of the manufacturing site such as an on-site store, sampling room, or endorsement areas. Full details on minors’ policy for all types of licensed establishments is provided in section 10 of this manual. [Liquor Control and Licensing Act, section 35(a)] 17.17 Sampling Breweries, wineries and distilleries may offer free samples in a designated sampling room or as part of a tour. As many manufacturers find it difficult to draw prospective customers to the manufacturing facility, and because it is easier to test market and promote products to customers at the retail level, manufacturers may hold taste trials away from the manufacturing location in other licensed establishments or at tasting events licensed under a Special Occasion Licence (for more information, please see section 12.3 and the Special Occasion Licence Policy Manual) [Liquor Control and Licensing Act, section 52(1), Liquor Control and Licensing Regulation section 20 Liquor Control and Licensing Branch Policy] SECTION 17 – MANUFACTURER LICENSES Page 8 Liquor Licensing Policy Manual 17.17.1 Sampling at the manufacturing facility Manufacturers may have one or more sampling rooms (or areas) at the manufacturing site. The sampling room(s) must be in an indoor area of the licensed manufacturing facility, and may be located within an endorsement area such as an on-site store or lounge. Sampling areas must be indicated on the floor plan and are approved at the time of licensing. To change or add a sampling area(s), a structural change application is required. The amount that may be sold varies depending on the type of product being manufactured. If the licensee has multiple manufacturer licences at the site, the Branch may permit sampling rooms to overlap, allowing for the sampling of the product of all licences on the site. Wineries: In a sampling room (or area), a winery may provide unlimited free samples of their products. If a winery charges for samples of their liquor products they may provide no more than 150 ml of liquor per patron, per day. Breweries: In a sampling room (or area), a brewery may provide unlimited free samples of their products. If a brewery charges for samples of their liquor products they may provide no more than 375 ml of beer per patron, per day. Distilleries: In a sampling room (or area), a distillery may provide unlimited free samples of their products. If a distillery charges for samples of their liquor products they may provide no more than 45 ml of spirits per patron, per day. Manufacturers may also offer samples in the tour area (see section 17.20.5) [Liquor Control and Licensing Act, section 52(1), Liquor Control and Licensing Regulation section 20, Liquor Control and Licensing Branch Policy] 17.17.2 Public sampling in other licensed establishments A licensed manufacturer may provide free product samples in another licensed establishment as a promotional activity, subject to the trade practices requirements outlined in section 12 of this manual. [Liquor Control and Licensing Act, sections 45(1) and (2), Liquor Control and Licensing Regulation, section 50.1] 17.18 Sale of liquor Manufacturers must sell their products in accordance with their LDB Manufacturer’s Agreement. Manufacturers may sell their products to the Liquor Distribution Branch and directly to the public (in person or by internet sales) if they have an approved on-site store endorsement. Wineries, breweries, and craft distillers (as defined by the Liquor Distribution Branch) are also authorized to sell directly to other licensees for resale in their establishments. In the event of overlapping manufacturing licences on the same site and with the same licensee care must be given to follow the conditions of each licence. [Section 38(3)(a) and 39 of the Liquor Control and Licensing Act, Liquor Distribution Branch Policy] 17.19 Pricing For packaged sale of the manufacturer’s products, and for liquor served in a lounge and special event area, the general pricing provisions of section 7.3 in this manual apply. Lounges, special event areas, tour endorsements and picnic area endorsements may also offer an all-inclusive package that includes liquor in the price, as long as the amount of liquor to be provided is specified and not unlimited. [Liquor Control and Licensing Regulation, section 41(2)(a) and 41(3), Liquor Control and Licensing Branch Policy] SECTION 17 – MANUFACTURER LICENSES Page 9 Liquor Licensing Policy Manual 17.20 Endorsements Manufacturer endorsements were designed to foster development of the province’s liquor industry, and to enable the industry to develop a world-class culinary tourism market. In addition to operating a sampling room(s), manufacturers can apply for endorsements to operate an on-site store, lounge, special event area, picnic area, and tour area. The licensing and licence amendment process for endorsement areas is outlined in section 3 of this manual. A licensed manufacturer may hire a third party operator to operate an endorsement area (i.e. the lounge, on-site store or special event area) or the operation of the manufacturing facility itself. For full details on requirements for third party operators, please see section 3.2.10. [Liquor Control and Licensing Act, section 17(1) and (2), Liquor Control and Licensing Regulation, section 18.1(4)] 17.20.1 On-site store endorsement A manufacturer licence holder or applicant may apply for one on-site store area which authorizes the sale of liquor to the public from a store located on the manufacturing site or by internet sales. The store is the area where the licensee may sell their own products that are manufactured under the manufacturing licence and registered with LDB. Stores can sell by the bottle only. For brewery and distillery stores, sale for consumption in a picnic area is limited to single serving bottles only. A single licensee may hold multiple manufacturing licences on the same site (e.g. a winery and distillery). Where there are multiple manufacturing licences on the same site and each licence is owned by the exact same legal entity, a separate on-site store is permitted for each manufacturing licence, or a single store may be shared with no requirement to erect walls for physical separation of the different products. If there is another business on the site, the on-site store must have full height walls for separation, with no door allowing patron access between the store and the other business. Where there are different licensees located on the same site (e.g. different units of a warehouse) separation requirements of full height walls and separate entrance/exits apply. [Liquor Control and Licensing Regulation, sections 18.2; Liquor Control and Licensing Branch Policy] 17.20.2 Products that may be sold in the on-site store Sale of liquor products in an on-site store is limited to liquor products that are manufactured under the licence, and registered with LDB to the manufacturing licence at that site. Licensees who hold multiple licences at different sites may not sell the product of one manufacturing licence at the on-site store of another manufacturer. Licensees who hold multiple licences on the same site (winery and distillery) can sell the manufactured products of those manufacturers in one on site store. If there is a separate store for each licence on the same site, each store is limited to the sale of product manufactured under that licence. Non liquor products may also be sold provided they are directly related to the liquor products being sold. For example: items specifically identified with storing or serving liquor, such as bottle openers and drinking glasses; printed materials such as books and pamphlets concerning liquor in general or specific liquor products that are sold in your store; items that identify liquor products for sale in your store, such as umbrellas, T-shirts and aprons; and, packaged snacks and liquor-related soft drinks and juices, such as cocktail mixers. The sale of B.C. lottery products is permitted in manufacturers’ on-site retail stores under the following conditions: SECTION 17 – MANUFACTURER LICENSES Page 10 Liquor Licensing Policy Manual the licensee has been granted a lottery sales licence by the B.C. Lottery Corporation; and the licensee sells only lottery products licensed by the B.C. Lottery Corporation. Tobacco products and confectionary items may not be sold. [Liquor Control and Licensing Act, sections 12(3)(e) and 50(2); Liquor Control and Licensing Regulation, sections 18.2 and 46; Liquor Control and Licensing Branch Policy] 17.20.3 Lounge endorsement area(s) This endorsement allows patrons to consume liquor in a designated lounge area on the manufacturing site. In the case of a winery, patrons may consume wine, cider or wine coolers, sake or mead manufactured and bottled in BC by the glass or bottle. In the case of a brewery or distillery patrons may consume products registered to the licensee by the glass (or other single serving). A lounge may include an indoor lounge area, a standalone outdoor patio area, or both. A lounge may be located in whole or in part in: an area designated as a sampling room, an on-site store, and /or a tour area. Where there is a patio as well as an interior lounge area, the patio must be located adjacent to the interior lounge and meet patio policy requirements as per section 6.4 of this manual. The addition of a lounge or patio must be approved by the Branch and the local government /First Nation and have an occupant load determined by local officials (see chapter 3 for details on the application process for a lounge and the requirements for local government/ First Nation input). The applicant or licensee is responsible for complying with any local bylaws related to the patio. Patios must be designed to prevent noise disturbances to nearby residents and minimize the occasions where servers would be required to pass through an unlicensed area. To control patron access and egress, patios must be suitably bounded (e.g. by fencing, railings, planters, hedges, roped stanchions etc) and must have appropriate lines of sight for management of the area. The Agricultural Land Commission (ALC) may restrict the size and capacity of a lounge and/or patio lounge. Prior to submitting an application, applicants must verify if restrictions exist and provide details as applicable. Minors are permitted in lounges when they are: accompanied by a parent or guardian, or employed or retained as entertainers to entertain in the establishment Hours of operation for lounges, subject to limitation by the general manager, are between 9 a.m and 4 a.m. of the next day. [Liquor Control and Licensing Act, section 35 Regulation, section 18(4)] 17.20.4 Special event area endorsement (SEA) This endorsement allows for the hosting of special events such as weddings, concerts, private parties or promotional events open to the public within a designated area. A special event area may be located in any area on the site, and may be located in whole or in part in: an area designated as a sampling room; and/or an on-site store; and/or a lounge or any other endorsement area (if the SEA overlaps the picnic area service is permitted within that area during an event only, and the picnic area is considered closed). This endorsement allows patrons to consume in the case of a winery, wine, cider or wine coolers manufactured and bottled in BC by the glass or bottle; or, in the case of a brewery or distillery, products registered to the licensee by the glass or other single serving. It is event driven only and is not intended to SECTION 17 – MANUFACTURER LICENSES Page 11 Liquor Licensing Policy Manual be an extension or an alternative to a lounge. The SEA must be approved by the Branch and is subject to local government/First nation and public input. The interior space of the SEA or bounded patio must have an occupant load as determined by local officials (see chapter 3 for details on the application process for a SEA and the requirements for local government/ First Nation input). SEAs must meet patio policy requirements as per section 6.4 of this manual and be designed and located to prevent noise disturbances to nearby residents. Minors are permitted in a SEA when they are: accompanied by a parent or guardian, or employed or retained as entertainers to entertain in the establishment Hours of operation for special event areas, subject to limitation by the general manager, are between 9 a.m. and 4 a.m. of the next day. [Liquor Control and Licensing Act, section 35 Regulation, section 18(4)] 17.20.5 Tour area endorsement This endorsement allows patrons to consume the manufacturer’s product samples or purchased product by the glass (or other single serving) while on an indoor or outdoor tour. An outdoor tour area endorsement will only be considered if there are manufacturer-related features on the property, such as agricultural products used for manufacturing. The tour area must be approved by the Branch but there is no requirement for local government/First nation input. If a winery has a lounge and/or SEA, patrons on a tour can also consume wine manufactured and bottled in BC; otherwise only the winery’s product may be consumed. A tour area may overlap any endorsement area or sampling room. If manufacturers are providing a guided tour for patrons, liquor may be served or sold within the tour area itself or in a lounge, SEA or sampling room during the tour. If the patrons are on a self guided tour, sale and service is not permitted. However, liquor may be purchased from the lounge or SEA or provided from the sampling room to be consumed during the tour. For manufacturers with no SEA or lounge endorsement, consumption in the tour area is subject to the same restrictions as a sampling room (see section 17.17.1); there is no limit to free samples, but the amount that can be sold per person per day is limited depending on the type of manufacturer licence. Manufacturers can sell the maximum per person per day in the tour area, as well as in the sampling room. Unless otherwise stated, an indoor tour area may not be in use later than the operating hours of the manufacturer’s other endorsement areas (lounge, store or SEA when there is an event underway). An outdoor tour area must not be in use past dusk unless permitted by the general manager. Unaccompanied minors are permitted in tour areas, but may not be sold or served liquor. Where there are multiple manufacturers on the same site with the same licensee, and both licenses have approved tour endorsements, the tour areas may overlap allowing for sampling of products manufactured under both licenses. [Liquor Control and Licensing Act, section 12(3)(d), section 33, section 35 Liquor Control and Licensing Regulation section 9(a), 18.1] 17.20.6 Picnic area endorsement Licensees may apply to set aside one or more outdoor areas on the manufacturing property as picnic areas, where patrons can consume products by the glass (or bottle in the case of a winery) that are purchased from the manufacturer or obtained from the sampling room. The picnic area must be approved by the Branch but there is no requirement for local government/First nation input. Only large properties, or properties on agricultural land or in rural areas, would be eligible for consideration for a picnic area SECTION 17 – MANUFACTURER LICENSES Page 12 Liquor Licensing Policy Manual endorsement provided there was a suitable area on the site. A manufacturer with no property or limited property would not be eligible. A picnic area endorsement cannot be situated on an area zoned for patio use, or on municipally-owned land such as a sidewalk. For a picnic area at a winery, liquor consumption is restricted to the wine produced at the winery unless patrons are purchasing other BC wine from the lounge or the SEA (if an event is taking place). For a brewery or distillery, liquor consumption is restricted to the products of the manufacturer. The following applies to the endorsement for a picnic area: It may be a single area or multiple areas provided the combined area does not exceed 1000 square metres. There must be sufficient line of sight from a licensed interior to effectively manage the area, otherwise additional measures such as surveillance cameras, staff monitoring, or concave mirrors may be required. The picnic area is a consumption area only. No sale or service is permitted. Patrons must carry their own purchases or samples to the picnic area. The picnic area must have a clearly defined boundary (i.e., fencing, trees, planters, stanchions, barrels, bushes/natural flora). Picnic areas can be located on grass, gravel, paving, patio stones, or wooden decking that is located on ground level Ceilings, walls, awnings, and heaters are not permitted as picnic areas must be open to the elements (the picnic area can be abutting a licensed manufacturing facility). Umbrellas are permitted for sun protection. Hours are 9 AM to dusk unless otherwise restricted by the general manager. Unaccompanied minors are permitted in the picnic area. Location and management of this area must minimize the potential for any disturbances to nearby residents. Signage is required that identifies the picnic area and states that the sale and service of liquor is not permitted. Note: Pre 2005, some approved picnic area endorsements were restricted in hours of operation and terms and conditions by local government. Since 2005, local government consideration and public input is no longer required for picnic areas. [Liquor Control and Licensing Act, section 12(3)(d), section 33, section 35 Liquor Control and Licensing Regulation section 9(a), 18.1(5)] 17.20.7 Conditions for liquor consumption in overlapping endorsement areas As the endorsement areas each may have different terms and conditions, there are specific conditions under which they may or may not overlap. Where a lounge, tour area, or special event area overlap an onsite store and sampling area or counter, the provision of complimentary samples, the sale of packaged liquor and the sale of liquor by the glass may all occur within that overlapping area. Liquor obtained from a lounge, special event area, sampling room or on-site store may be carried and consumed by a patron within a licensed tour area. A patron may consume liquor inside a licensed picnic area provided the liquor was obtained from one of the other endorsement areas or sampling area and carried to the picnic area by the patron. For both picnic and tour areas located at a winery, liquor is restricted to wine registered to the winery unless the winery also has an approved lounge or special event area. A picnic area cannot overlap a lounge, including a patio lounge. A tour may overlap a picnic area provided there is no sale or service in the picnic area. A special event area may overlap a picnic area during special events. In this case the picnic area is closed to the public. SECTION 17 – MANUFACTURER LICENSES Page 13 Liquor Licensing Policy Manual Where approved, licensees with multiple manufacturer licences (such as a winery and a distillery) at the same site can have overlapping endorsement areas where both licences products may be served (such as a winery lounge overlapping a distillery lounge). Manufacturer endorsement areas may not overlap another type of licence on the same site (liquor primary, food primary, etc). The responsibilities of the licensee relating to the control of liquor consumption in a manufacturer lounge, special event area, picnic area, sampling room, or tour area are otherwise the same as those that apply generally to liquor primary licensed establishments. [Liquor Control and Licensing Regulations, section 18(2); Liquor Control and Licensing Branch Policy] 17.20.8 Temporary de-licensing of endorsement areas Upon application by a licensee, the Branch may temporarily suspend the licence of a manufacturer’s endorsement area for the purpose of holding a public or private Special Occasion Licence (SOL) event. If the event is taking place in the manufacturing facility, and not in an endorsement area, the licence does not need to be suspended. Prior to holding the event, the host (either the licensee or another eligible party) must apply for and obtain a special occasion licence to be in effect for the duration of the event. The following terms and conditions apply to these special events: The special event is temporary and only occasional (A manufacturer licensee may apply for a maximum of 4-6 temporary licence changes per year. An individual or organization may not exceed 2 SOLs a month or 24 a year unless a SOL exemption has been granted.) The licence will be suspended from one hour before the start of the special event through until the end of liquor service hours for that business day (which stretches over to the next calendar day if regular hours of service end after midnight). Once the special event is over and the establishment is closed for the night it must remain closed until at least 6:00 a.m. If the establishment has more than one endorsement area, the licence may be suspended for a specified area of the establishment provided there are physical barriers to prevent patrons and liquor moving between the two areas. The liquor for the endorsement area(s) must be secure and inaccessible to any patrons in the establishment consuming liquor under a special occasion licensed event. All liquor served at the event must be purchased separately from the LDB or the manufacturer under the SOL. De-licensing is also required for an event where a licensed caterer is providing the liquor. Please see section 5.2 for changes of hours of sale for staff parties and extension of hours on New Year’s Eve. [Liquor Control and Licensing Act, sections 6, 12(3); Liquor Control and Licensing Branch Policy] 17.20.9 Entertainment in endorsement areas General conditions for entertainment and games are described in section 11 of this manual. Lounges, special event areas, picnic areas and tour areas may have the following types of entertainment: games and entertainment described in 11.1.3; audio, films, video and television, in accordance with 11.2; a contest or tournament, if it complies with the requirements of section 11.3; gaming, in accordance with 11.4 and 11.7. If minors are present, the only forms of gaming permissible are ticket raffles and BC Lottery products; and adult entertainment is not permitted. A manufacturer may also allow a non–profit community organization to run gaming (gambling) activities in its special event, lounge or picnic endorsement areas, if the organization has a licence from the Gaming Policy and Enforcement Branch (GPEB). SECTION 17 – MANUFACTURER LICENSES Page 14 Liquor Licensing Policy Manual [Liquor Control and Licensing Act, sections 12(3)(e) and 50(2); Liquor Control and Licensing Regulation, section 46; Liquor Control and Licensing Branch Policy] 17.20.10 Food service in lounges and special event areas Unless exempted by the general manager, lounge and special event areas must make, at a minimum, a reasonable variety of hot or cold snacks and non-alcoholic beverages available to patrons at reasonable prices. Food service in the range generally offered by a restaurant is not expected, however packaged snacks such as chips, peanuts, and those commonly found in vending machines do not meet the minimum food requirement for lounges and special event areas. [Liquor Control and Licensing Act, section 73(1), Liquor Control and Licensing Regulations, sections 18(6) and 34, Liquor Control and Licensing Branch Policy] 17.20.11 Food preparation facilities in lounges and special event areas In the course of inspecting the licensed premises of lounges and special event areas, inspectors may inspect the records and licensed premises and consider whether the establishment has food preparation facilities sufficient to dispense the food items required by regulation. [Liquor Control and Licensing Act, section 73(1), Liquor Control and Licensing Regulations, sections 18(6) and 34, Liquor Control and Licensing Branch Policy] 17.20.12 Exemption from requirements to serve food and non-alcoholic beverages in tour and picnic areas Manufacturers with a tour or picnic area endorsement are not required to provide food or non-alcoholic beverages in these endorsement areas as they are not liquor service areas. [Liquor Control and Licensing Act, section 12(3)(f), Liquor Control and Licensing Regulation section 18(6)] 17.21 Manufacturer tied house requirements A tied house is a licensed establishment (bar, restaurant, licensee retail store, etc.) that has an association, financial or otherwise, with a liquor manufacturer or its agent that is likely to lead to its products being favoured. The tied house relationship is considered as part of the licensing process (see section 3.2.5 of this manual). 17.22 Manufacturer trade practices requirements For detailed information on permitted and prohibited relationships between licensees and manufacturers please see section 12. 17.23 Manufacturer contests and tournaments Manufacturers may promote their products on or off the manufacturing site by hosting contests with a licensee or agent. Conditions that apply to contests held by liquor manufacturers in licensed establishments are outlined in section 11.3.2. Manufacturers may also sponsor tournaments (distinguished from contests by the requirement for a certain degree of physical exertion and/or skill) for a licensee in their establishment or hold a tournament in a licensed area on the manufacturing site. Conditions for tournaments on and off site are outlined in section 11.3.3. Rules governing sponsorships and licensee relationships with manufacturers are described in section 12. 17.24 Manufacturer inspection requirements All manufacturer’s premises must at all reasonable times be open to inspection by either the liquor inspector or police. The liquor inspector or police officer has authority to examine the books of a manufacturer to verify records. SECTION 17 – MANUFACTURER LICENSES Page 15 Liquor Licensing Policy Manual [Liquor Control and Licensing Act, section 12, 57] SECTION 17 – MANUFACTURER LICENSES Page 16 Liquor Licensing Policy Manual SECTION 18: UBrew/UVin 18.0 Introduction This section provides an overview of the legislation, regulations, and policies specific to UBrews and UVins. A UBrew/UVin licence enables UBrew/UVin companies to provide supplies, facilities, and/or services to people making their own wine, beer, cider or coolers. UBrew and UVin licensees, their staff, and their customers are not manufacturers or vendors of liquor. Instead, licensees supply ingredients and/or assist customers through the fermentation or brewing process, and the end product is for the customer’s own private use. 18.1 Definitions and Interpretation 18.1.1 Definitions "bottle" includes a can, keg, cask or other container or package into which beer, wine or cider is placed after it is removed from a carboy; "carboy" means a container used for the aging or storage of beer, wine or cider; "customer" means a person who pays a fee to produce or manufacture beer, wine or cider in a U-Brew or U-Vin; "licensee" means a person holding a licence under section 12.1 of the Act to operate a U-Brew or U-Vin. 18.1.2 Interpretation The only sections of this manual that apply to UBrew/UVins are sections 1 – 4, 6.1, 10 and 18. 18.2 Application Process and Changes to a Licence 18.2.1 Eligibility Applicants must meet the relevant eligibility requirements outlined in Section 3.2 of this Manual in order for a UBrew/UVin Licence to be issued, renewed or transferred. Applicants will be required to have valid interest in their business and in their establishment (see Sections 3.2.4 and 4.5 of this Manual). All licensees must undergo a background check and meet residency requirements prior to licensing (Sections 3.2.2 and 3.2.3 of this Manual). Applicants must not hold, or be associated with someone holding, a liquor manufacturer licence, agents licence, or liquor primary, liquor primary club, food primary, licensee retail store, wine store, or catering licence. See section 18.5 for details and exceptions. Licensees and their employees are not required to have Serving it Right certification. [Liquor Control and Licensing Act, section 13, 16(1), 16(3), 16(5), 18(1.1)-(1.3); Liquor Control and Licensing Regulation section 4, 38(1) and (2), 43] 18.2.2 Licence Application Applicants for a UBrew/UVin Licence are required to follow the licensing process set out in Section 3 of this manual, except: Applicants will not require local government comment prior to issuance; No person capacity is set for the establishment; and SECTION 18 – UBrew/UVin Page 1 Liquor Licensing Policy Manual Applicants will not be required to submit a floor plan as part of the application. [Liquor Control and Licensing Act, section 15(1); Liquor Control and Licensing Regulation, section 6(5); Liquor Control and Licensing Branch Policy] 18.2.3 Renewals Licensees are required to renew their licence each year by March 31st. [Liquor Control and Licensing Act, section 12.1(6); Liquor Control and Licensing Branch Policy] 18.2.4 Changes to a Licence or to Business Ownership Licensees are required to comply with the requirements of Section 4 of this Manual. Licensees do not need to request approval for structural changes to their establishment. [Liquor Control and Licensing Regulation, section 7(2)] 18.2.5 Relocation of UBrew/UVin Establishment Licensees must not change the location of their establishment without the written consent of the general manager.1 The general manager may give written consent to the relocation if: the applicant has demonstrated a valid interest in the proposed location; the applicant retains a valid interest in the current establishment until the application receives approval; and any other relevant factors are satisfactorily addressed. No local government comment is necessary for a relocation of a UBrew/UVin. Applicants will be subject to a final inspection. [Liquor Control and Licensing Act, section 21(3)] 18.2.6 Licence Not Needed to Sell Kits A UBrew/UVin licence is not required for a business that sells kits, juices or other ingredients for customers to make beer or wine at home. A licence is only required when production is done outside of the home. [Liquor Control and Licensing Act, section 55(2)(a)] 18.2.7 Federal Requirements Licensees must be registered with the federal government. Licensees making wort need a Federal licence to operate as a Brewery (for the Manufacture of Wort). Licensees should contact the Canada Revenue Agency2 for information about registration and licensing well before applying to the Branch for a UBrew/UVin licence. UBrews are also regulated by the Excise Act (Canada). See also Circular ED 212-103. UVins are also regulated by the Excise Act, 2001 (Canada). See also Excise Duty Memorandum 4.1.34. [Excise Act (Canada); Excise Act, 2001 (Canada)] For the purposes of this section, ‘relocation’ means a relocation to a new address, as defined in section 4.4.2. http://www.ccra-adrc.gc.ca/ 3 http://www.cra-arc.gc.ca/E/pub/ed/ed212-10/ed212-10-e.pdf 4 http://www.cra-arc.gc.ca/E/pub/em/edm4-1-3/edm4-1-3-e.pdf 1 2 SECTION 18 – UBrew/UVin Page 2 Liquor Licensing Policy Manual 18.3 Business Requirements 18.3.1 Posting Licence Licensees must post their original liquor licence certificate in a prominent location in the licensed area of the establishment. The licence must be immediately available for review by liquor inspectors and police, if required, as detailed in Section 6.1 of this Manual. Licensees are not required to have a floor plan available for inspection. [Liquor Control and Licensing Regulation 37(1)] 18.3.2 Record Keeping All licensees must keep a number of records, including records related to: Product sales records; Purchase and disposal records; Sales records, invoices and purchase receipts; leases and management contracts; employee records; and any court orders or judgements. In addition, licensees must maintain records of: all ingredients purchased for use in the production of beer, wine, cider and wine coolers in the establishment. These records must indicate the source and volume of the ingredients; all sales, invoices and customer declaration forms; the type and volume of beer, wine, cider and wine coolers produced in the facility by the licensee and the licensee’s employees records detailing the disposition of any beer, wine or cider that is spoiled, spilled, unclaimed or returned to the licensee. Licensees must keep all records for at least three years, and make them available upon request to branch staff or a person designated by the branch. [Liquor Control and Licensing Regulation section 31, 34; Liquor Control and Licensing Branch Policy] 18.3.3 Semi-Annual Report Licensees must provide a record of the volume of beer, wine, cider and wine coolers produced in the facility in the two preceding 6-month periods to the branch when they renew their licence each year. [Liquor Control and Licensing Regulation, section 31(3)] 18.3.4 Hours of Sale Subject to limitation by the General Manager, UBrew/UVins may be open to the public between the hours of 9:00 am and 11:00 pm. [Liquor Control and Licensing Regulation, section 33] 18.3.5 Consumption / Tasting A licensee may allow a customer to taste up to 2 samples of the customer’s product before completion of bottling to ensure taste acceptability. Each sample must not exceed 100 ml (200ml is the maximum sample per batch, regardless of the number of persons making the batch). Otherwise, a licensee must not allow the consumption of beer, wine or cider at the establishment. Licensees may not provide samples of finished product to the public. (see also section 18.4.2.) SECTION 18 – UBrew/UVin Page 3 Liquor Licensing Policy Manual Licensees must not permit sampling parties in their establishment, where kit manufacturers or customers provide finished product to the public. [Excise Act (Canada)5; Liquor Control and Licensing Regulation section 26, 32(3); Liquor Control and Licensing Branch Policy] 18.3.6 Sales Prohibited The purpose of a UBrew/UVin is to operate as a facility where customers make product for their own consumption. Licensees must ensure that beer, wine or cider is not kept for sale, offered for sale, produced for sale or sold at the U-Brew or U-Vin. [Excise Act (Canada), section 172; Excise Act, 2001 (Canada), section 63, Liquor Control and Licensing Regulation section 29] 18.3.7 Entertainment and Contests Entertainment and games are not permitted at a UBrew/UVin. A licensee may hold contests, provided: purchasing products or services is not a condition of contest entry; an entry fee is not charged; the prize does not consist of both product and service (liquor cannot be given as a prize); a winner does not need to be present in order to be eligible for any prizes or awards; licensees, their employees, and their immediate family members are not eligible to enter or win a contest; and the licensee must comply with any additional conditions imposed by the general manager in the public interest. [Liquor Control and Licensing Act, section 50(2); Liquor Control and Licensing Regulation, section 46; Liquor Control and Licensing Branch Policy] 18.4 Advertising 18.4.1 What a Licensee May Advertise Licensees may only advertise: the name, location, and contact information of their store; that their establishment is licensed to provide goods, facilities or services for the production or manufacturing of beer, wine or cider by customers; their hours of operation; the products, facilities and services available, and their prices. This includes kits, juices, ingredients and assistance in making the product; and the availability of specific types of ingredients for the production or manufacturing of beer, wine or cider at the U-Brew or U-Vin. Advertisements must clearly state that the prices advertised represent the cost of producing or manufacturing the beer, wine or cider at the establishment and do not refer to the price of the finished product. Ads may show people making liquor in the establishment, include pictures of the facility, and ads may indicate – for example: 5 See Circular ED 212-10 http://www.cra-arc.gc.ca/E/pub/ed/ed212-10/ed212-10-e.pdf SECTION 18 – UBrew/UVin Page 4 Liquor Licensing Policy Manual “make your own wine – special this week: kit only $120.00” “wine kits on sale: 20% off” or “make 50 litres of beer for $120 bucks.” [Liquor Control and Licensing Act, section 12.1(4)(d); Liquor Control and Licensing Regulation, section 32; Liquor Control and Licensing Branch Policy] 18.4.2 What a Licensee May Not Advertise Ads may not: mention or imply the availability of liquor (finished product) for sale; show people drinking, or appearing to drink, liquor; provide the price of the finished product, either per batch or per bottle and imply that the customer has no role in making the product – for example: o “beer at one-half the liquor store price” o “wine $3.00 per bottle” o “12 dozen beer for $110” o “50 litres of beer for $100”; offer price discounts, such as “second batch at half price” or “make two batches, get the third one free,” or volume discounts for making more than one batch at a time; market products and services in a way that would promote the illegal use of the products by your customers. For example, ads may not promote the consumption of wine or beer produced at a UBrew/UVin at an event, such as a wedding, held in a public place (because it is illegal to serve liquor in a public place without a special occasion licence), or inside a licensed establishment (because all licensed establishments must buy their liquor from the Liquor Distribution Branch). Licensees must not provide any person with a sample of beer, wine or cider that is, or may be available to be, produced or manufactured at the U-Brew or U-Vin. [Liquor Control and Licensing Act, section 12.1(4)(d); Liquor Control and Licensing Regulation, section 32, Liquor Control and Licensing Branch Policy] 18.4.3. Methods of Advertising Licensees may advertise through any medium unless otherwise restricted by the general manager, bylaws of a municipality or regional district or laws of Canada. [Liquor Control and Licensing Act, section 49(3); Liquor Control and Licensing Regulation, sections 56; Liquor Control and Licensing Branch Policy] 18.4.4 Promotions Licensees may choose the prices for products and may place products on sale and advertise the sale, including the price, provided the licensee conforms to the restrictions described in section 18.4.2. Licensees may offer, using newsletters or similar forms of communication with known customers: discount programs for frequent users (“make five batches, get one free,” for example) “company money” that can be reimbursed against future purchases volume discounts to individuals or groups who make more than one batch at a time contests where you award either free product or free services (the prize may not consist of both product and service, as this would constitute giving liquor as a prize), provided there is no contest entry fee. Bulk mailings describing these promotions or advertising them in the media are not permitted. [Liquor Control and Licensing Act, section 12.1(4)(d); Liquor Control and Licensing Branch Policy] SECTION 18 – UBrew/UVin Page 5 Liquor Licensing Policy Manual 18.4.5 Customer Appreciation Events Licensees may hold a customer appreciation event where liquor is served, provided: A private Special Occasion Licence is obtained from a government liquor store It must be an invitation only private event The liquor served must be at no charge to those attending No UVin/UBrew products can be sampled during the event Wines or beers provided to those attending are purchased from a Liquor Distribution Branch (LDB) government liquor store The event may be held at the UBrew/UVin, provided the following additional requirements are met: The licensee must apply to the Branch to temporarily suspend their licence for the event Customers may not manufacture product while the licence is temporarily suspended For further information on Special Occasion Licensing, please refer to the Special Occasion Licence Policy Manual. For further information on temporary suspensions, please refer to section 5.2. [Liquor Control and Licensing Branch Policy] 18.4.6 Requirements for Signs Signs are considered advertising and must comply with the requirements of sections 18.4.1 and 18.4.2 and with local government bylaws. Signs may display: The name of the store. The liquor licence category. A person making liquor in the UBrew / UVin. The products and services offered. UBrew/UVin establishments must post the “UBrew/UVin Notice to Customer” sign available on LCLB’s website. [Liquor Control and Licensing Act, section 49(3); Liquor Control and Licensing Regulation, section 32; Liquor Control and Licensing Branch Policy] 18.4.7 Sponsorship of Events A licensed establishment may sponsor an event, activity, or organization using their corporate name or the name of the licensed establishment. The sponsored event or activity must be held offsite. Sponsoring events aimed at minors is prohibited. Joint sponsorship with a manufacturer is permitted if: The activity is time-limited and not part of an on-going relationship with the manufacturer; and The manufacturer or agent has notified the Liquor Control and Licensing Branch, in writing, at least 14 days before any sponsored activity takes place. [Liquor Control and Licensing Act, section 54; Liquor Control and Licensing Regulation, section 60; Liquor Control and Licensing Branch Policy] 18.5. Relationships with Liquor Manufacturers and Agents Applicants or UBrew/UVin licensees must not: hold a liquor manufacturer licence, agent licence or licence issued under section 12 of the Act (e.g. food primary, liquor primary, licensee retail store), or SECTION 18 – UBrew/UVin Page 6 Liquor Licensing Policy Manual be associated with, connect with, or financially interested in, a person holding a liquor manufacturer licence, agents licence or licence issued under section 12 of the Act. An exception applies to persons that held both licences on April 1, 2000, if the association, connection or financial interest has not since that date, in the general manager’s opinion, expanded in scope or degree. [Liquor Control and Licensing Act, section 18 (1.1) – (1.3)] 18.6 Minors Minors are allowed in the retail part of a UBrew/UVin unless the licensees chooses to set a house policy that prohibits the entry of minors into the establishment. A licensee may employ minors in their establishment provided they are under the licensee or an adult employee’s direct and continual supervision. They must not be left alone in charge of the establishment. Except for minors who are employees, minors are not permitted in the areas of the establishment where liquor is manufactured or stored unless accompanied by a parent or guardian. Minors may not manufacture liquor or assist a parent or guardian in the production process. For full details on minors in licensed establishments and the identification of minors please refer to section 10 of the Manual. [Liquor Control and Licensing Act, sections 33(1), 35; Liquor Control and Licensing Regulation, section 30; Liquor Control and Licensing Branch Policy] 18.7 Production Requirements 18.7.1 Types of Liquor That May be Offered A licensee may permit customers to produce beer, wine, cider and wine coolers. The maximum alcohol content for beer is 11.9%. The maximum alcohol content for wine6 is 22.9%. The maximum amount of wine that may be produced at one time is 500 litres.7 The production of spirits is prohibited. Licensees may not offer kits for customers to make spirits at home, since the production of spirits for personal use without a licence is prohibited by federal law.8 [Excise Act (Canada), section 4; Excise Act, 2001 (Canada), sections 2, 60, 61, 70(2)(g); Liquor Control and Licensing Act, section 55; Liquor Control and Licensing Branch Policy] 18.7.2 Assistance The purpose of a UBrew/UVin is to operate as a facility where customers make product for their own consumption. Therefore, it is important for customers to actively participate in the process. There are specific steps that a customer is required to perform – adding ingredients (section 18.7.7), cleaning bottles (section 18.7.8), bottling product (section 18.7.13) and removing product (section 18.7.14). Customers may be assisted during the production process by anyone who is not associated with the operation of the U-Brew or U-Vin. 6 Cider and wine coolers are included in the definition of wine under the Excise Act, 2001 (Canada). 500 Litres in bulk form. This does not included any amounts of packaged wine. 8 A person is prohibited from possessing a still or other equipment suitable for the production of spirits, unless they have a licence. It is not prohibited to possess a still that is to be used for other purposes, such as the purification of water. 7 SECTION 18 – UBrew/UVin Page 7 Liquor Licensing Policy Manual Licensees may assist customers who are physically incapable of safely performing a task alone. Licensees may oversee the fermentation, filtration, racking and aging of the product and get it ready for bottling. Customers do not have to be involved in these steps, although they may be. Licensees and their staff may also assist customers by: holding the fermentation vessel while the customer pours in the ingredients; transferring the wort to the fermentation vessel; demonstrating the bottling mechanism and process by filling one bottle for the customer; demonstrating the corking/capping mechanism and process by corking/capping one bottle for the customer; demonstrating the labelling and shrink-topping procedures by labelling and shrink-topping one bottle for the customer; handing empty bottles to the customer while he or she fills the bottles; placing the filled bottles in cases; carrying the bottled product to the customer’s vehicle. [Liquor Control and Licensing Act, section 12.1(4)(a); Liquor Control and Licensing Regulation section 23(2); Liquor Control and Licensing Branch Policy] 18.7.3 Group Batches If a group of people want to produce liquor together, the group may either split a single batch or more than one person may make several batches. In either case, all of the customers who will take ownership of the product must: visit the store and be involved in all the “first visit” steps of the production process have their names stated on the invoice, and sign a declaration. Without these steps, the customer or customers making the product would be in the position of illegally selling finished liquor. At least one member of the group must return to bottle the product. After bottling, the members of the group may divide the product among themselves while on-site. Groups may not enter into a co-operative or club arrangement whereby members bottle and take away product that was started by other members of the cooperative or club. A Licensee may not invite customers to participate in a group batch organized by its establishment. [Liquor Control and Licensing Act, section 12.1(4)(a); Liquor Control and Licensing Policy] 18.7.4 Licensee or Employee Production Licensees and their staff may make beer, wine, cider or coolers on-site for their own consumption, provided: the licensee prepares an invoice (even if there is no charge) and keeps a record of the production; The product is labelled as belonging to the licensee or employee. The carboy tags must be visually different (a different colour, for example) from those of regular customers; The product is made during the normal licensing hours of 9:00 am to 11:00 pm (the licensee or employee may, however, make their product within these hours even if the store is not open to the public); the product is not consumed on-site (beyond the tasting limits outlined in section 18.3.5); once bottled, the licensee or employee removes the product from the premises; and The product is not used for any purpose within the establishment. SECTION 18 – UBrew/UVin Page 8 Liquor Licensing Policy Manual [Liquor Control and Licensing Act, section 12.1(4)(c) and (e); Liquor Control and Licensing Regulation, section 24; Liquor Control and Licensing Branch Policy] 18.7.5 Payment and Invoice Prior to allowing a customer to begin production, licensees must ensure that the customer: pays for the ingredients to make the beer, wine or cider, or if the customer brings their own products, pays for the manufacturing facilities or services to be provided. If the customer purchases the ingredients, the licensee may invoice the customer for services provided at a later date. After payment is received, the licensee must provide the customer an invoice that contains the following information: the customer’s name and telephone number; the type and quantity of beer, wine, cider or coolers to be made; the date and the amount of payment received from the customer; and the name, address and telephone number of the UBrew/UVin. [Liquor Control and Licensing Regulation section 22(1)(a)] 18.7.6 Acknowledgement Prior to allowing a customer to begin production, licensees must ensure that the customer signs an acknowledgement that they are making the beer, wine or cider for their own consumption, or for consumption by other people, if their consumption is at no charge. The acknowledgement must: be part of the invoice, or attached to the invoice; have a typeface that is clearly legible, and be of at least 11 point font; and be signed by the customer. The licensee must retain the acknowledgement for audit purposes (see section 18.3.2). Sample wording for the acknowledgement is provided in the Terms and Conditions Guide. [Liquor Control and Licensing Regulation section 22(1)(b); Liquor Control and Licensing Branch Policy] 18.7.7 Adding Ingredients The licensee must ensure that the customer combines or mixes ingredients with any of the following: Beer wort; Fruit; Wine or cider juice; Concentrate; Fermentable liquids. The licensee must ensure that the customer adds the enzymes or yeast, if required for the fermentation process. The degree of customer involvement will vary depending on the type of product being manufactured and the form it takes. For example: Beer/Wine/Cider kits: The customer must pour the juice/concentrate into the fermentation vessel and add water (if required), yeast and any other necessary ingredients to the fermentation vessel. Juice barrels: The customer must add the yeast and any other necessary ingredients to the barrel. SECTION 18 – UBrew/UVin Page 9 Liquor Licensing Policy Manual Beer in kettles: The customer must add the necessary ingredients (hops and malt extract) to the water in the kettle, let it cook and add yeast. Pre-made wort under Federal Wort Licence: The customer must add yeast to the wort (which is prepared by the licensee). Commercially available pre-packaged wort kits: Same as for beer/wine/cider kits. [Liquor Control and Licensing Regulation, section 23(1)(a) and (b); Liquor Control and Licensing Branch Policy] 18.7.8 Cleaning Bottles The licensee must ensure that the customer: Removes or defaces commercial labels from bottles; and Washes or sterilizes the bottles in preparation for bottling. The customer may clean the bottles off site. Defacing must include, at a minimum, putting a clearly visible and permanent dark felt pen marking across the label. There are no restrictions on the size, sale or rental of bottles / containers. Customers may bring their own bottles/ containers or buy/rent their own bottles. [Liquor Control and Licensing Regulation section 23(1)(c); Liquor Control and Licensing Branch Policy] 18.7.9 Storage Licensees must store all unbottled product on-site. A licensee may not remove it from the establishment for any purpose before it is bottled. The federal Excise Act does not allow licensees to operate a secondary storage site. Licensees must attach a carboy tag or label to every carboy, fermentation vessel and barrel that clearly states: The customer’s full name; The date the enzymes or yeast were added, or the date that the product was started; and The customer’s invoice number. The licensee may include the racking dates or other information on the carboy tag or label. [Excise Act, 2001, Canada, section 70(2)(f); Liquor Control and Licensing Act, section 12.1(4)(e); Liquor Control and Licensing Regulation 25; Liquor Control and Licensing Branch Policy] 18.7.10 Barrel Aging Licensees may offer a barrel-aging service, where more than one customer’s product is placed in a barrel for aging after fermentation. When the licensee empties the barrel, the licensee must pour the product back into carboys, and the customers must then return to the facility and complete all of the remaining steps such as bottling. The licensee must affix to the barrel the carboy tags of every customer whose product is stored in that barrel. [Liquor Control and Licensing Act, section 12.1(4)(e); Liquor Control and Licensing Regulation, section 25; Liquor Control and Licensing Branch Policy] 18.7.11 Topping Up Some wine may be lost during the racking process. Licensees may top up a customer’s product with a non-alcoholic substance, such as water. SECTION 18 – UBrew/UVin Page 10 Liquor Licensing Policy Manual A licensee may permit customers to bring their own wine to top up their own product. Customers may use commercially produced wine or their own product. The customer may not leave the wine for the licensee to add at a later point. Licensees may not add wine to a customer’s carboy. This practice is not required to produce wine, and doing so would put the licensee in the position of being an unlicensed manufacturer. [Liquor Control and Licensing Act, section 12.1(4)(a) and (e); Liquor Control and Licensing Branch Policy] 18.7.12 Fortifying Port and Sherry A customer may purchase distilled alcohol (brandy or vodka, for example) from a liquor store and add it to port and sherry being made at a UBrew/UVin immediately prior to bottling. Licensees may not provide the distilled alcohol, and the customer may not leave it on-site for the licensee or staff to add to the product. [Liquor Control and Licensing Act, section 12.1(4)(a) and (e); Liquor Control and Licensing Branch Policy] 18.7.13 Bottling Product Licensees must ensure that the customer: bottles their product, affixes labels or other decorative items to bottles, if any, and corks, caps or shrink wraps the bottles. [Liquor Control and Licensing Regulation, section 23(1)(d) and (e), 27; Liquor Control and Licensing Branch Policy] 18.7.14 Removal of Finished Product Licensees must ensure that the customer removes the bottled product from the UBrew/UVin immediately after bottling. Licensees must not allow customers to store bottled product – for any reason – at the UBrew/UVin. Licensees must not deliver a customer’s product. [Excise Act; Excise Act, 2001, section 89; Liquor Control and Licensing Regulation, section 23(f), 28] 18.7.15 Trading Racks and Product Exchange Licensees must not store bottled product on-site. Licensees must also ensure that product is not kept for sale, offered for sale, produced for sale, or sold at the UBrew/UVin. The definition of ‘sale’ includes exchanging and bartering. Customers may give away their product, as long as they do not receive anything in exchange. Because of these requirements, “Trading racks” – where a customer leaves some of his or her product in the licensed establishment after bottling and takes another customer’s product left behind in exchange – are not permitted. Similarly, licensees may not organise, post, or permit to be posted in their establishment any notices or lists that encourage product trading among customers or which provide an opportunity for customers to place their names and telephone numbers on a trading list. Licensees are permitted to display a sign-up board or similar device where customers interested in manufacturing a particular product can contact other interested persons to start and share a batch. [Liquor Control and Licensing Act, section 1(1) and 38(1);Liquor Control and Licensing Regulation, section 29; Liquor Control and Licensing Branch Policy] SECTION 18 – UBrew/UVin Page 11 Liquor Licensing Policy Manual 18.7.16 Unclaimed Product If a customer does not return to the UBrew/UVin to bottle and remove the product he or she has made, the licensee must make a reasonable attempt to contact the customer. If, after a reasonable interval, the licensee still cannot reach the customer, the licensee may destroy the product. The licensee may not remove the product from the UBrew/UVin, may not bottle or consume the product, and may not sell or offer the product for sale. The licensee must keep a record of the disposition of any product that is unclaimed. [Liquor Control and Licensing Regulation, section 25(2), 26, 27, 29, 31(1)(d); Liquor Control and Licensing Branch Policy] 18.7.17 Customer Returns If a customer returns product that is not satisfactory, the licensee may provide the customer with the opportunity to make a free or discounted batch of product, provided: the customer signs a new declaration and repeats all of the required production steps; the licensee prepares an invoice (even if there is no charge) and keeps a record of the production; and the licensee or the licensee’s staff destroy the unsatisfactory product. A licensee may not, under any circumstances, provide a customer with finished product that the customer did not produce to replace a batch that the customer returned. The licensee must keep a record of the disposition of any product that is returned. [Liquor Control and Licensing Regulation, section 31(1)(d), Liquor Control and Licensing Branch Policy] SECTION 18 – UBrew/UVin Page 12 Liquor Licensing Policy Manual Policies by Applicable Licence Category Note: This section has not been updated with the February 2013 changes. APPLICABLE LICENCE CATEGORIES POLICIES LP C W FP LRS 3 LICENSING PROCESS 3.1 Stage 1: Application for a New Licence 3.1.1. Assessment of primary operating purpose in a liquor primary licence application 3.1.2. Assessment of primary operating purpose in a food primary licence application 3.1.3. Complete application 3.1.4. Incomplete application 3.1.5. Criminal record search requirements 3.1.6. 90-Day Retention Period for Incomplete Applications 3.1.7. False information in an application 3.1.8. Written acknowledgment of complete application 3.1.9. Written acknowledgment of name and sign approval 3.2 Stage 2: Applicant Eligibility Assessment 3.2.1. Criteria for applicant eligibility 3.2.2. Consideration of applicant suitability 3.2.3. Consideration of residency and age requirements 3.2.4. Consideration of business ownership and valid property interest 3.2.5. Consideration of tied house circumstances 3.2.6. Hearing of the Liquor Licensing Committee 3.2.7. Adjudications of Fit and Proper Issues Hearings 3.2.8. Written notification of decision 3.2.9. Managing the establishment for the licensee: Resident Manager 3.2.10. Operating the establishment for the licensee: Third party operator 3.3 Stage 3: Site and Community Assessment 3.3.1. Site and community assessment of a liquor primary licence, winery lounge or special event area endorsement application 3.3.2. Notice to a local government or First Nation of an application for a liquor primary licence LP = Liquor Primary Licence Categories C = Liquor Primary Club W = Winery FP = Food Primary LRS = Licensee Retail Store POLICIES BY APPLICABLE LICENCE CATEGORY Page 1 Liquor Licensing Policy Manual APPLICABLE LICENCE CATEGORIES POLICIES LP C W 3.3.15. Form and manner of public notice of the application 3.3.16. Public response radius when giving public notice of the application 3.3.17. Hearing of the Liquor Licensing Committee 3.3.3. Notice to a local government or First Nation of an application for a winery lounge or special event area endorsement 3.3.4. Notice to a local government or First Nation of a subsequent application for a liquor primary licence 3.3.5. Determination of when notice of an application has been received by a local government or First Nation 3.3.6. Requests for time extensions from local governments or First Nations 3.3.7. Recommendations on terms and conditions from local governments or First Nations 3.3.8. Consideration of whether local governments or First Nation took into account all of the criteria 3.3.9. Consideration of local government or First Nation comments and recommendations relating to an application for a liquor primary licence 3.3.10. Circumstances under which the local government or First Nation may be asked for an amended resolution 3.3.11. Circumstances under which the general manager will gather the views of residents by referendum 3.3.12. Nature of a referendum held to gather the views of residents 3.3.13. Circumstances under which the general manager will gather the views of residents by receiving written comments in response to a public notice of the application 3.3.14. Consideration of resolutions where a local government or First Nation fails to comment on all of the criteria required by the regulation 3.3.18. Written notification of decision following Site and Community Assessment 3.3.19. Extension of approval period FP LRS 3.4 Stage 4: Building Assessment and Issue of a Licence 3.4.1. Consideration of local government and First Nation approvals 3.4.2. Plan requirements for separate licensed areas 3.4.3. Review of plans for compliance with statutory and policy requirements 3.4.4. Marking on plans where liquor may be served and consumed 3.4.5. Review of plans for approval before building construction LP = Liquor Primary Licence Categories C = Liquor Primary Club W = Winery FP = Food Primary LRS = Licensee Retail Store POLICIES BY APPLICABLE LICENCE CATEGORY Page 2 Liquor Licensing Policy Manual APPLICABLE LICENCE CATEGORIES POLICIES LP C W FP LRS 3.4.6. Setting person capacity during the original licence application 3.4.7. Bylaw limiting person capacity 3.4.8. Notification of decision 3.4.9 Extension of approval period 3.4.10. Inspection of premises 3.4.11. Review of licence terms and conditions 3.4.12. Final administrative requirements 3.4.13. Licence notification 3.5 Licence Amendments 3.5.1. Notice to a local government or First Nation of an application to amend a liquor primary licence or winery licence endorsement 3.5.2. Notice to a local government or First Nation of an application to permanently amend a food primary licence 3.5.3. Notice to a local government or First Nation of an application to temporarily amend a licence 3.5.4. Determination of when notice of an application has been received by a local government or First Nation 3.5.5. Requests for time extensions from local governments or First Nations 3.5.6. Recommendations on terms and conditions from local governments or First Nations 3.5.7. Consideration of whether local government or First Nation took into account all of the criteria 3.5.8. Consideration of local government or First Nation comments and recommendations relating to an application to amend a licence 3.5.9. Circumstances under which the local government or First Nation may be asked for an amended resolution 3.5.11. Form and manner of public notice of the application 3.5.12. Public response radius when giving public notice of the application 3.5.13. Written notification of decision about amendment application 3.5.10. Circumstances under which the general manager will gather the views of residents on an application to permanently amend a licence 3.6 Re-Application 3.6.1. Refusal to grant a licence effective for two-years 3.6.2. Exception to two-year waiting period LP = Liquor Primary Licence Categories C = Liquor Primary Club W = Winery FP = Food Primary LRS = Licensee Retail Store POLICIES BY APPLICABLE LICENCE CATEGORY Page 3 Liquor Licensing Policy Manual APPLICABLE LICENCE CATEGORIES POLICIES LP C W FP LRS 3.6.3. Effect of exception to two-year waiting period 3.7 Licence Renewals 3.7.1. Personal suitability factors affecting licence renewal 3.7.2. Site and community factors affecting licence renewal 3.7.3. Applications for licence renewal received on or before the expiry date 3.7.4. Applications for licence renewal received within thirty days after expiry date 3.7.5. Applications for licence renewal received more than thirty days after expiry date 4. BUSINESS OWNERSHIP AND CHANGES TO A LICENCE 4.1 Change Approval Authority 4.1.1. Authority to approve applications for changes to licences 4.1.2. Applications for an exercise of discretion 4.1.3. Statute barred change applications 4.1.4. Change applications in which enforcement action is in progress 4.1.5. Factors in determining the relevancy of a licensee’s compliance history in a change application 4.1.6. Time span of compliance record relating to a change request 4.2 Legal Name/Internal Ownership Changes 4.2.1. Advice of licensee name change 4.2.2. Individual name change 4.2.3. Corporation name change 4.2.4. Notice of internal amalgamation 4.2.5. Internal share transfer 4.2.6. Change in the officers of a club 4.2.7. Renewal of Licence upon notice of death 4.2.8. Issue of amended licence upon notice of bankruptcy or receivership 4.3 Change in Ownership or Sale of a Licensed Establishment 4.3.1. Definitions applicable to a change in ownership or sale of a licensed establishment 4.3.2. Licence not transferable without general manager’s consent LP = Liquor Primary Licence Categories C = Liquor Primary Club W = Winery FP = Food Primary LRS = Licensee Retail Store POLICIES BY APPLICABLE LICENCE CATEGORY Page 4 Liquor Licensing Policy Manual APPLICABLE LICENCE CATEGORIES POLICIES LP C W FP LRS 4.3.3. Corporate transfers of licence or shares 4.3.4. Applicant eligibility 4.3.5. Addition or deletion of partners 4.3.6. Addition or deletion of shareholders 4.3.7. Licence and external share transfers involving licensees of another licensed establishment 4.3.8. Club licences not transferable 4.3.9 Temporary permission to use a licence pending a transfer 4.4 Relocation of a Licensed Establishment 4.4.1. Licence for a re-locating establishment not transferable without general manager’s consent 4.4.2. Definition of relocation 4.4.3. Relocation to a new address 4.4.4. Relocation at the same address 4.4.5. Relocation of a licensee retail store 4.4.6. Relocation of a liquor primary establishment 4.5 Valid Interest in an Establishment 4.5.1. Establishment ownership or leasehold 4.5.2. Disputes regarding the validity of a lease 4.5.3. Documents in the name of the licensee 4.5.4. Proof of valid interest in property during licensing process 4.5.5. Management contracts with third parties 4.6 Dormant Liquor Primary Licences 4.6.1. Definition of dormant licence and application of policy 4.6.2. Compliance with the Act, regulations, and terms and conditions of the licence 4.6.3. Reporting and monitoring dormant licences 5 HOURS OF OPERATION 5.1 Hours of Sale 5.1.1. General conditions in setting the Hours of Sale LP = Liquor Primary Licence Categories C = Liquor Primary Club W = Winery FP = Food Primary LRS = Licensee Retail Store POLICIES BY APPLICABLE LICENCE CATEGORY Page 5 Liquor Licensing Policy Manual APPLICABLE LICENCE CATEGORIES POLICIES LP C W FP LRS 5.1.2. Factors considered in the public interest in setting the Hours of Sale 5.1.3. Application of licence amendment policy in temporary or permanent changes to opening or closing hours 5.1.4. Temporary and Permanent changes to opening or closing hours 5.1.5. Expiration of approval for temporary change in hours of sale 5.1.6. Variation of hours in areas specified by a local government or First Nation 5.1.7. Hours of operation on the night of a time change 5.2 Special Events 5.2.1. Extension of hours on New Year’s Eve 5.2.2. Conditions for staff parties 5.2.3. Temporary suspension of a licence for staff party 5.2.4. Temporary suspension of a food primary licence for a special event 5.2.5. Temporary suspension of a liquor primary licence for a special event 5.3 Alternate Use 5.3.1. Definition and general requirements for alternate use of licensed establishments 5.3.2. Alternate use of liquor primary licensed establishments outside licensed hours 5.3.3. Alternate use of liquor primary licensed establishments during licensed hours 6 PREMISES 6.1 Posting of Licence and Access to Approved Plans 6.1.1. Availability of liquor licence and approved floor plans for inspection 6.2 Structural Alterations 6.2.1. Definition of structural alteration or enlargement 6.2.2. Setting person capacity for a structural alteration or change in size of the licensed area 6.2.3. Approval of structural alteration or enlargement 6.2.4. Written decision 6.3 Capacity 6.3.1. General considerations in setting person capacity 6.3.2. Factors considered in the public interest in setting person capacity LP = Liquor Primary Licence Categories C = Liquor Primary Club W = Winery FP = Food Primary LRS = Licensee Retail Store POLICIES BY APPLICABLE LICENCE CATEGORY Page 6 Liquor Licensing Policy Manual APPLICABLE LICENCE CATEGORIES POLICIES LP C W FP 6.3.3. Application of licence amendment policy in temporary or permanent changes to capacity 6.3.4. Temporary and permanent changes to person capacity 6.4 Outdoor Patios 6.4.1. General considerations in outdoor patio applications 6.4.2. Specific considerations in outdoor patio applications 6.4.3. Application of licence amendment policy to outdoor patio applications 6.5 Adjoining Licensed and Unlicensed Areas 6.5.1. General considerations in granting approval for shared or adjoining facilities 6.5.2. Shared or adjoining facilities between food primary and liquor primary licensed establishments 6.5.3. Shared or adjoining facilities between a food primary licensed establishment and an unlicensed area 6.5.4. Shared or adjoining facilities between a liquor primary licensed establishment and an unlicensed area that is not primarily involved in hospitality, entertainment, food, or beverage service 6.5.5. Shared or adjoining facilities between a liquor primary licensed area and an unlicensed area that is primarily involved in hospitality, entertainment, food, or beverage service 6.5.6. Shared or adjoining facilities between licensee retail stores and licensed or unlicensed areas 6.6 Restaurant Lounges 6.6.1. General conditions for a restaurant lounge 6.6.2. Setting person capacity for a restaurant lounge 6.6.3. Restaurant patio lounges 6.6.4. Seating in the lounge area of a restaurant 6.7 Restaurant Operating Details and Furnishings 6.7.1. Operating details and furnishings consistent with food service 6.7.2. Where decor and furnishings are more consistent with another licence category 6.8 Standalone Policy for Licensee Retail Stores (LRS) 6.8.1. Permitted associations for licensee retail stores 6.8.2 Standalone requirements where an LRS is owned by the same legal entity as the associated LP, LRS, or licensed hotel (including associated FP) LP = Liquor Primary Licence Categories C = Liquor Primary Club W = Winery FP = Food Primary LRS LRS = Licensee Retail Store POLICIES BY APPLICABLE LICENCE CATEGORY Page 7 Liquor Licensing Policy Manual APPLICABLE LICENCE CATEGORIES POLICIES LP C W FP LRS 6.8.3 Standalone requirements where an LRS is owned by a different legal entity than the associated LP, LRS, or licensed hotel (including associated FP) 6.8.4 Standalone requirements upon the transfer of ownership, relocation, or structural change of an LRS 6.8.5 Prohibited associations for licensee retail stores 7 LIQUOR SERVICE AND SALES 7.1 Type of Liquor Sold 7.1.1. Types of liquor sold in liquor primary establishments 7.1.2. Types of liquor sold in stadiums 7.1.3. Types of liquor sold in food primary licensed establishments 7.1.4. Types of liquor sold in Licensee Retail Stores 7.1.5. Types of liquor sold in winery lounges and picnic areas 7.2 Ordering Liquor 7.2.1. Inspection of liquor register and other items 7.2.2. Subject of liquor register inspection 7.3 Pricing 7.3.1. General conditions applying to liquor prices and price lists 7.3.2. Pricing and availability of product 7.3.3. Liquor prices in licensee retail stores 7.3.4. Liquor prices and Liquor Distribution Branch purchase price 7.3.5. Theme night prices 7.3.6. All-inclusive packages including liquor in the price 7.3.7. Reference to credit sales on price list 7.4 Dispensers and Drink Sizes 7.4.1. Serving size and preparation of a “drink” containing distilled liquor 7.4.2. Container and serving size for wine 7.4.3. Container and serving size for draught beer 7.5 Replacement of Faulty Keg or Spoiled Product by Brewer’s Agent 7.5.1. System of accounting for faulty keg replacement is part of liquor register 7.5.2. Authorization for pick up and replacement of faulty kegs 7.5.3. Failure to properly account for liquor received or credited through the replacement of a faulty keg LP = Liquor Primary Licence Categories C = Liquor Primary Club W = Winery FP = Food Primary LRS = Licensee Retail Store POLICIES BY APPLICABLE LICENCE CATEGORY Page 8 Liquor Licensing Policy Manual APPLICABLE LICENCE CATEGORIES POLICIES LP C 7.6.1. Off-premises sales endorsement 7.6.2. Consideration of local issues 7.6.3. Hours of sale 7.6.4. Types of liquor sold 7.7 Special Conditions 7.7.1 Conditions for liquor sales and service in clubs 7.7.2 Conditions for liquor sales and service from golf course kiosks, takeout windows, or beverage carts 7.7.3 Conditions for liquor sales and service on motor vessels 7.7.4 Conditions for liquor sales and service through room service 7.7.5 Conditions for liquor sales and service through mini-bars 7.7.6 Conditions for liquor sales and service in stadiums 7.7.7 Stadiums, concert halls and convention centres – event driven 7.7.8 Exemption from the prohibition against tied houses for stadiums and concert halls 7.7.9 Stadiums – Private suites/boxes: self-service, spirits and minors W FP 7.7.10. Application of tied house rules to brewpubs 7.7.11 Downhill ski resort areas 7.7.12 Conditions for liquor sales and service in movie and live event theatres 7.7.13 Section 27 green lined areas 7.8.1 Ministers of religion 7.8.2 Religious ceremonies in a regular place of worship 7.8.3 Social events associated with or ancillary to religious ceremonies 7.8.4 Personal consumption 7.8.5 Bonafide church suppliers 8 MANAGEMENT AND CONTROL OF A LICENSED ESTABLISHMENT 8.1 General Consumption 8.1.1. Intoxicated patrons 8.1.2. Control of liquor consumption in licensed establishment 8.1.3. Liquor in Washrooms 8.1.4. Liquor on stages 8.1.5. Conditions for consumption outside the licensed area in liquor primary establishments LP = Liquor Primary Licence Categories C = Liquor Primary Club W = Winery FP = Food Primary LRS LRS = Licensee Retail Store POLICIES BY APPLICABLE LICENCE CATEGORY Page 9 Liquor Licensing Policy Manual APPLICABLE LICENCE CATEGORIES POLICIES LP 8.1.7. Conditions for on-premises liquor consumption in licensee retail stores 8.1.8. Conditions for liquor consumption in winery endorsement areas 8.2 Consumption by Employees 8.2.1. C W FP LRS Licensee and employee consumption of liquor while working 8.2.2. Employee consumption of liquor after work 8.3 Management of Patron Conduct 8.3.1. Licensee’s responsibility to manage patron conduct 8.3.2. Reasonable measures 8.3.3. Licence suspension and closure of premises 8.4 Serving It Right Program 8.4.1. Training requirement 8.4.2. One hundred and twenty (120) day exemption from training requirement 8.4.3. Full exemptions from training requirement 9 FOOD SERVICE 9.1 General Conditions 9.1.1. Exemption from requirements to serve food and non-alcoholic beverages 9.1.2. Type of food service in liquor primary licensed establishments, winery lounges, and winery picnic areas 9.1.3. Type of food service in food primary licensed establishments 9.1.4. Inspection to determine availability of food and non-alcoholic beverages 9.1.5. Food preparation facilities in licensed establishments 9.1.6. Sale of non-liquor items in licensee retail stores 10 MINORS 10.1 General Conditions 10.1.2. Factors considered in permitting minors on licensed premises 10.1.3. Minors in liquor primary licensed establishments 1 10.1.1. General conditions respecting minors on licensed premises 10.1.4. Minors in food primary licensed establishments and liquor primary stadiums 1 F √ Applies to licensees and staff of a food primary establishment, provided the licence is not endorsed for a licensed lounge area. Licence Categories LP = Liquor Primary C = Liquor Primary Club W = Winery FP = Food Primary LRS = Licensee Retail Store POLICIES BY APPLICABLE LICENCE CATEGORY Page 10 Liquor Licensing Policy Manual 10.1.5. Minors in winery picnic and tour areas APPLICABLE LICENCE CATEGORIES POLICIES LP C W FP LRS 10.1.7. Minors in licensee retail stores 10.1.8. Employment of minors in licensed establishments 10.1.9. Minors in possession of liquor 10.1.10. Identification of minors 10.2 Minors as Entertainers 10.2.1. Establishments in which minors providing entertainment are permitted 10.2.2. Conditions for minors providing entertainment in licensed establishments 11 ENTERTAINMENT 11.1 General Conditions 11.1.1. Authority to approve, prohibit, restrict or limit entertainment in a licensed establishment 11.1.2. Factors considered in imposing terms and conditions for entertainment and games 11.1.3. General conditions for entertainment and games 11.1.4. Entertainment and games in liquor primary licensed establishments, winery lounges, and winery picnic areas 11.1.5. Entertainment and games in food primary licensed establishments 11.1.6. Hours of patron participation and non-participation entertainment in food primary establishments 11.2.5. Performances involving animals 11.2.6. Consumption of liquor by entertainers 11.1.7. Sign describing adult entertainment 11.2 Live Performances 11.2.1. Factors considered in imposing terms and conditions for live stage performances 11.2.2. Definitions of exotic dancer and stripper and adult-oriented performer 11.2.3. General conditions for exotic dancing and stripping and other performances 11.2.4. Prohibited acts during the performance of an exotic dancer or stripper or adult-oriented performer 11.3 Audio, Film, Video and Television 11.3.1. Factors considered in imposing terms and conditions for audio, film, video and television entertainment LP = Liquor Primary Licence Categories C = Liquor Primary Club W = Winery FP = Food Primary LRS = Licensee Retail Store POLICIES BY APPLICABLE LICENCE CATEGORY Page 11 Liquor Licensing Policy Manual 11.3.2. Audio, film, video and television presentations in liquor primary establishments, food primary establishments, winery lounges and SEAs APPLICABLE LICENCE CATEGORIES POLICIES 11.4 LP C W FP Patron Participation and Non-Participation Entertainment 11.4.1. Definitions of patron participation and non-participation entertainment 11.4.2. Factors considered in imposing terms and conditions for patron participation and non- participation entertainment 11.4.3. Entertainment hours and endorsement of a food primary licence for patron participation and non-participation entertainment 11.4.4. Applications for karaoke box style restaurants 11.4.5. Conditions for karaoke box style restaurants 11.5 LRS Games in a Licensed Establishment 11.5.1. Factors considered in approving games 11.5.2. Games and entertainment in licensee retail stores 11.5.3. Electronic and mechanical games 11.5.4. Licensee contests in licensed establishments 11.5.5. Manufacturer contests in licensed establishments 11.5.6. Tournaments 11.6.1. Factors considered in restricting, cancelling or prohibiting an activity 11.6.2. Lottery tickets 11.6.3. Licensed social occasion casinos and bingo events 12.1.1. Activities permitted at any time (no buy-sell agreement required) 12.1.2. Activities not permitted—Tied Houses/Inducements 12.1.3. Activities permitted with a buy-sell agreement only 12.1.4. Buy-sell agreements 11.6 Gambling in a Licensed Establishment 12 Licensee Relationships with Manufacturers 12.1 General Conditions LP = Liquor Primary Licence Categories C = Liquor Primary Club W = Winery FP = Food Primary LRS = Licensee Retail Store POLICIES BY APPLICABLE LICENCE CATEGORY Page 12 Liquor Licensing Policy Manual APPLICABLE LICENCE CATEGORIES POLICIES LP C W FP LRS 12.2.1. Promotional items of nominal value 12.2.2. More expensive promotional items 12.2 Promotional Items 12.2.3. Joint promotions/brewmaster or winemaker dinners 12.2.4. Value-Added promotions in licensee retail stores 12.2.5. Product vouchers for redemption at licensee retail stores 12.3 Consumer Taste Trials 12.3.1. Objectives of consumer taste trials 12.3.2. Conduct of consumer taste trials in licensee retails stores 12.3.3. Conduct of consumer taste trials in restaurants 12.3.4. Charges and product purchases 12.3.5. Maximum sample quantities in licensee retail stores and food primary establishments 12.3.6. Service and management of open beverage alcohol 12.3.7. Advertising 12.4 Theme Night Promotions 12.4.1. Educational component 12.4.2. Conduct 12.4.3. Activities permitted during theme night promotions 12.4.4. Charges and product purchases 12.4.5. Maximum sample quantities during theme night promotions 12.5.1. Buying drinks for patrons 12.5.2. Product samples 12.5.3. Educational events and activities 12.5.4. Hospitality 12.5.5. Sponsorships 13.1.1. Nature of the information provided 13.1.2. Methods of advertising 12.5 Manufacturer Hospitality and Educational Activities 13 Advertising and Signage 13.1 General Conditions LP = Liquor Primary Licence Categories C = Liquor Primary Club W = Winery FP = Food Primary LRS = Licensee Retail Store POLICIES BY APPLICABLE LICENCE CATEGORY Page 13 Liquor Licensing Policy Manual APPLICABLE LICENCE CATEGORIES POLICIES LP C W Signs and advertising for liquor primary establishments 13.1.5. Signs and advertising for licensee retail stores 13.1.6. Signs displaying Fetal Alcohol Syndrome (FAS) warnings LP = Liquor Primary Licence Categories C = Liquor Primary Club W = Winery FP = Food Primary LRS 13.1.3. Signs and advertising for food primary lounges 13.1.4. FP LRS = Licensee Retail Store POLICIES BY APPLICABLE LICENCE CATEGORY Page 14 Liquor Licensing Policy Manual Index 14B Note: This section has not been updated with the February 2013 changes. To search for a keyword in the digital version of this document, press “Ctrl+F”. Terms & Phrases Section # Section Name A Adjoining facilities 3.4 6.5 Advertising 2.1 11.5 12.1 12.2 12.3 12.4 13.1 Adult entertainment 6.5 10.1 11.1 11.2 Agency store 2.2 3.4 6.5 7.2 7.6 8.1 Aircraft 8.4 Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Plans Approval Guidelines) Premises – Adjoining Licensed and Unlicensed Areas (Policy Rationale; Policies - 6.5.1; 6.5.2; 6.5.3; 6.5.4; 6.5.5; 6.5.6) General Information – Operating Environment (Branch Organisation and Function) Entertainment - Games in a Licensed Establishment (Policies - 11.5.4; 11.5.5; 11.5.6) Licensee Relationships with Manufacturers – General Conditions (Policies- 12.1.2) Licensee Relationships with Manufacturers – Joint Promotional Items (Policies - 12.2.3, 12.2.4) Licensee Relationships with Manufacturers – Consumer Taste Trials (Policies -12.3.7) Licensee Relationships with Manufacturers – Theme Night Promotions (Policies -12.4.3) Advertising and Signage – (Policy Rationale; Policies 13.1.1 – 13. 1.6) Premises – Adjoining Licensed and Unlicensed Areas (Policies - 6.5.2; 6.5.3; 6.5.5; 6.5.6) Minors – General Conditions (Policies - 10.1.3) Entertainment – General Conditions (Policy Rationale; Policies - 11.1.7) Entertainment – Live Stage Performances (Policy Rationale) General Information – Licence Categories (Manufacturer Licence) Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Plans Approval Guidelines) Premises – Adjoining Licensed and Unlicensed Areas (Policy Rationale) Liquor Service and Sales – Ordering Liquor (Policy Rationale) Liquor Service and Sales – Off-Premises Sales (Policies 7.6.1) Management and Controls of a Licensed Establishment – General Consumption (Policies - 8.1.8) Management and Controls of a Licensed Establishment – Serving It Right Program (Policies - 8.4.3) INDEX Page 1 Liquor Licensing Policy Manual Terms & Phrases Airport Alternate use 10.1 Minors – General Conditions (Policy Rationale; Policies 10.1.3) Section # 10.1 Section Name Animals, on stage 5.3 10.1 11.2 Appetizers 2.2 6.7 9.1 Applicant eligibility 3.2 4.3 Applicant suitability 3.2 3.7 4.2 4.3 4.5 Application fees (See also Fees and Licence Fees) 3.1 Application for a new licence 3.7 6.3 3.1 Approval period 3.3 3.4 Minors – General Conditions (Policy Rationale: Policies 10.1.3) Hours of Operation – Alternate Use Minors – General Conditions (Policies - 10.1.1) Entertainment – Live Stage Performances (Policies 11.2.5) General Information – Licence Categories (Food Primary Licence) Premises – Restaurant Décor (Policies - 6.7.1) Food Service – General Conditions (Policy Rationale; Policies - 9.1.3) Licensing Process – Stage 2: Applicant Eligibility Assessment (Policy Rationale; Policies - 3.2.1; 3.2.6; 3.2.7; 3.2.8) Business Ownership and Changes to a Licence – Change in Ownership or Sale of a Licensed Establishment (Policy Rationale; Policies - 4.3.4) Licensing Process – Stage 2: Applicant Eligibility Assessment (Policy Rationale; Policies - 3.2.1; 3.2.2) Licensing Process – Licence Renewals (Policy Rationale) Business Ownership and Changes to a Licence – Legal Name/ Internal Ownership Changes (Policy Rationale) Business Ownership and Changes to a Licence – Change in Ownership or Sale of a Licensed Establishment (Policy Rationale) Business Ownership and Changes to a Licence – Valid Interest in an Establishment (Policy Rationale) Licensing Process – Stage 1: Application for a New Licence (Policy Rationale; Policies - 3.1.6) Licensing Process – Licence Renewals (Policies - 3.7.3) Premises – Capacity (Policies - 6.3.4) Licensing Process – Stage 1: Application for a New Licence Licensing Process – Stage 3: Site and Community Assessment (Policies - 3.3.19) Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Policies – 3.4.9) B B.C. Lottery Corporation 9.1 11.6 Food Service – General Conditions (Policy Rationale; Policies - 9.1.6) Entertainment – Gambling in a Licensed Establishment (Policy Rationale; Policies 11.6.3; 11.6.5) INDEX Page 2 Liquor Licensing Policy Manual Bankruptcy 4.2 Business Ownership and Changes to a Licence – Legal Name/ Internal Ownership Changes (Policy Rationale; Policies - 4.2.8) INDEX Page 3 Liquor Licensing Policy Manual Terms & Phrases Banquet room Section # 2.2 3.1 Bar stools 3.4 Beer 2.2 3.4 7.1 7.3 7.4 7.5 7.6 7.7 12.1 12.4 12.5 Beverage carts – golf courses 7.7 Billiards 11.1 11.4 11.5 Bingo 11.6 Branch organization 2.1 Brew pub 7.7 Section Name General Information – Licence Categories (Food Primary Licence) Licensing Process – Stage 1: Application for a New Licence (Policies - 3.1.2) Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Plans Approval Guidelines for Food Primary Licensing) General Information – Licence Categories (Licensee Retail Stores; U-Brew/U-Vin Licence) Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Plans Approval Guidelines for Liquor Primary Licensing of Stadiums) Liquor Service and Sales – Types of Liquor Sold (Policy Rationale; Policies - 7.1.2) Liquor Service and Sales – Pricing (Policy Rationale) Liquor Service and Sales – Dispensers and Drink Sizes (Policy Rationale; Policies - 7.4.3) Liquor Service and Sales – Replacement of Faulty Keg or Spoiled Product by Brewer’s Agent (Policy Rationale) Liquor Service and Sales – Off-Premises Sales (Policy Rationale; Policies - 7.6.4) Liquor Service and Sales – Special Conditions (Stadiums and Concert Halls – Tied House Exemption) Licensee Relationships with Manufacturers – General Conditions (Policies - 12.2.2; 12.2.5; 12.3.5 ) Licensee Relationships with Manufacturers – Theme Night Promotions (Policies - 12.4.5) Licensee Relationships with Manufacturers – Consumer Tastings (Policies - 12.5.2) Liquor Service and Sales – Special Conditions (Policy Rationale; Golf Course Kiosks, Take-out Windows and Beverage Carts) Entertainment – General Conditions (policies – 11.1.5) Entertainment – Patron Participation and Non-Patron Participation (Policy Rationale) Entertainment – Games in a Licensed Establishment (Policy Rationale) Entertainment – Gambling in a Licensed Establishment (Policy Rationale; Policy - 11.6.4) General Information – Operating Environment (Branch Organisation and Function) Liquor Service and Sales – Special Conditions (Brew Pub – Tied House Exemption; Policies - 7.7.8) INDEX Page 4 Liquor Licensing Policy Manual Terms & Phrases Building assessment Section # 3.4 6.2 Building code Business ownership 6.4 6.3 3.2 4.0 4.1 4.2 4.3 4.4 4.5 4.6 Buy-Sell Agreement 12.1 12.2 12.4 12.5 Bylaws, local government 3.2 3.3 3.4 3.7 6.2 6.3 6.4 13.1 Section Name Licensing Process – Stage 4: Building Assessment and Issue of a Licence Premises – Structural Alterations (Policy Rationale; Policies - 6.2.2) Premises – Outdoor Patios (Policy Rationale) Premises – Capacity (Policy Rationale) Licensing Process – Stage 2: Applicant Eligibility Assessment (Policy Rationale; Policies - 3.2.1; 3.2.4) Business Ownership and Changes to a Licence Business Ownership and Changes to a Licence – Change Approval Authority Business Ownership and Changes to a Licence – Legal Name/Internal Ownership Changes Business Ownership and Changes to a Licence – Sale of a Licensed Establishment Business Ownership and Changes to a Licence – Relocation of a Licensed Establishment Business Ownership and Changes to a Licence – Valid Interest in an Establishment Business Ownership and Changes to a Licence – Dormant Licences Licensee Relationships with Manufacturers (Policy Rationale; Policies - 12.1.1;12.1.3; 12.1.4) Relationships with Manufacturers –Promotional Items (Policy Rationale; Policies – 12.2.2; 12.2.4) Licensee Relationships with Manufacturers- Theme Night Promotions (Policy Rationale; Policies – 12.4.2) Licensee Relationships with Manufacturers –Manufacturer Hospitality and Educational Activities (Policy Rationale – 12.5.1; 12.5.3; 12.5.4; 12.5.5)) Licensing Process – Stage 2: Applicant Eligibility Assessment (Policies - 3.2.2) Licensing Process – Stage 3: Site and Community Assessment (Policy Rationale; Policies – 3.3.14) Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Policy Rationale; Policies – 3.4.1; 3.4.6; 3.4.7; 3.4.13) Licensing Process – Licence Renewals (Policies - 3.7.1) Premises – Structural Alterations (Policies - 6.2.1) Premises – Capacity (Policy Rationale) Premises – Outdoor Patios (Policy Rationale) Advertising and Signage – General Conditions (Policy Rationale) INDEX Page 5 Liquor Licensing Policy Manual Terms & Phrases Section # Section Name C Card games 11.1 11.5 Casinos 11.5 11.6 Change approval authority 4.0 4.1 Change in ownership 4.1 4.3 4.5 Charitable draws 11.6 China - dishware 2.2 6.7 Christmas parties Entertainment – General Conditions (Policies - 11.1.3; 11.1.4; 11.1.5) Entertainment – Games in a Licensed Establishment (Policy Rationale) Entertainment – Games in a Licensed Establishment (Policy Rationale) Entertainment – Gambling in a Licensed Establishment (Policy Rationale; Policy - 11.6.4) Business Ownership and Changes to a Licence – Introduction Business Ownership and Changes to a Licence – Change Approval Authority (Policy Rationale; Policies - 4.1.1; Change Approval Authority Roles and Responsibilities) Business Ownership and Changes to a Licence – Change Approval Authority (Policies - 4.1.5) Business Ownership and Changes to a Licence – Change in Ownership or Sale of a Licensed Establishment Business Ownership and Changes to a Licence – Valid Interest in an Establishment (Policy Rationale) Entertainment – Gambling in a Licensed Establishment (Policy Rationale; Policy - 11.6.4) General Information – Licence Categories (Food Primary Licence) Premises – Restaurant Operating Details and Furnishings (Policy Rationale) See Staff Parties Client groups of LCLB 2.1 General Information – Operating Environment (Introduction; Client Groups) Closing time 5.1 Hours of Operation – Hours of Sale (Policies - 5.1.2; 5.1.4; 5.1.7) Liquor Service and Sales – Off-Premises Sales (Policy Rationale) Management and Controls of a Licensed Establishment – General Consumption (Policy Rationale) Licensee Relationships with Manufacturers– Consumer Taste Trials (Policies - 12.5.2) See Liquor Primary Club 7.6 8.1 12.5 Club Cold beer and wine stores definition 2.2 General Information – Licence Categories (Licensee Retail Stores) INDEX Page 6 Liquor Licensing Policy Manual Terms & Phrases Community impact Section # 3.3 3.5 3.6 4.4 Community standards 6.4 2.1 4.6 11.4 Complete application 3.1 Compliance history/record (see Enforcement record) 4.1 Concert hall 5.1 6.3 7.7 10.1 12.5 Consumer taste trials 12.3 12.4 Contact sports 11.1 Contests 11.5 11.6 12.1 12.3 12.4 13.1 Section Name Licensing Process – Stage 3: Site and Community Assessment (Policies - 3.3.11; 3.3.12; 3.3.13; 3.3.14) Licensing Process – Licence Amendments (Policies 3.5.11) Licensing Process – Re-Application (Policy Rationale) Business Ownership and Changes to a Licence – Relocation of a Licensed Establishment (Policy Rationale; Policies – 4.4.3) Premises – Outdoor Patios (Policy Rationale) General Information – Operating Environment (Regard for Community Standards) Business Ownership and Changes to a Licence – Dormant Liquor Primary Licences (Policy Rationale) Entertainment – Patron Participation and NonParticipation Entertainment (Policy Rationale) Licensing Process – Stage 1: Application for a New Licence (Policy Rationale; Policies - 3.1.3; 3.1.8; 3.1.9) Business Ownership and Changes to a Licence – Change Approval Authority (Policies - 4.1.2; 4.1.5) Hours of Operation – Hours of Sale (Policies - 5.1.2) Premises – Capacity (Policies - 6.3.2) Liquor Service and Sales – Special Conditions (Policy Rationale; Stadiums and Concert Halls – Tied House Exemption; Policies - 7.7.7) Minors – General Conditions (Policy Rationale; Policies 10.1.3; 10.1.8) Licensee Relationships with Manufacturers – Manufacturer Hospitality and Educational Activities (Policies – 12.5.5) Licensee Relationships with Manufacturers – Consumer Taste Trials (Policy Rationale; Policies – 12.3.1-12.3.7) Licensee Relationships with Manufacturers—Theme Night Promotions (Policy Rationale; Policies – 12.4.3) Entertainment – General Conditions (Policy Rationale; Policies - 11.1.4) Entertainment – Games in a Licensed Establishment (Policy Rationale; Policies – 11.5.4 - 11.5.5) Entertainment – Gambling in a Licensed Establishment (Policy Rationale) Licensee Relationships with Manufacturers –General Conditions (12.1.1; 12.1.3) Licensee Relationships with Manufacturers – Contests (Policy Rationale; 12.3.1; 12.3.2) Licensee Relationships with Manufacturers—Theme Night Promotions (Policies - 12.4.3) Advertising and Signage - General Conditions (Policies 13.1.1) INDEX Page 7 Liquor Licensing Policy Manual INDEX Page 8 Liquor Licensing Policy Manual Terms & Phrases Convention centre Convictions Section # 10.1 3.1 3.2 3.7 Section Name Minors – General Conditions (Policy Rationale; Policies 10.1.3; 10.1.8) Licensing Process – Stage 1: Application for a New Licence (Policies - 3.1.5) Licensing Process – Stage 2: Applicant Eligibility Assessment (Policy Rationale; Policies - 3.2.2) Licensing Process – Licensing Renewals (Policy Rationale; Policy – 3.7.1) Business Ownership and Changes to a Licence – Legal Name/ Internal Ownership Changes (Policies - 4.2.3) Corporation name change 4.2 Credit sales 7.3 Liquor Service and Sales – Pricing (Policies - 7.3.7) Criminal conviction 3.1 Licensing Process – Stage 1: Application for a New Licence (Policies - 3.1.5) Criminal record search 3.1 Licensing Process – Stage 1: Application for a New Licence (Policies - 3.1.5) Curling Clubs 7.7 Liquor Service and Sales – Special Conditions (Curling Clubs; Policies – 7.7.) Minors – General Conditions (General conditions respecting minors on licensed premises; Policies 10.1.1; Minors in liquor primary licensed establishments; Policies 10.1.3) 10.1 D Dance floors 3.4 6.2 6.7 Death of a licensee Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Policies - 3.4.4; Plans Approval Guidelines) Premises – Structural Alterations (Policies - 6.2.1) Premises – Restaurant Operating Details and Furnishings (Policies - 6.7.1) 7.2 Liquor Service and Sales – Ordering Liquor (Policies – 7.2.7) Décor 6.7 Premises – Restaurant Operating Details and Furnishings (Policy Rationale; Policies - 6.7.2) INDEX Page 9 Liquor Licensing Policy Manual Terms & Phrases Demographics Section # 2.2 Dine and dance 11.1 11.4 Discretion, exercise of 1.0 2.1 3.1 4.1 5.0 5.1 5.2 5.3 6.3 7.7 12.3 Distilled liquor 7.4 12.2 12.5 Dormant licence 4.6 Downhill ski resort areas 7.7 10.1 Section Name General Information – Licence Categories (Liquor Primary Licence) Entertainment – General Conditions (Policy Rationale; Policies - 11.1.6) Entertainment – Patron Participation and NonParticipation Entertainment (Policies - 11.4.3; 11.4.5) Introduction – Introduction (The Effect of Policies; Mandatory or Discretionary?) General Information – Operating Environment (Operating Principles) Licensing Process – Stage 1: Application for a New Licence (Policies - 3.1.6) Business Ownership and Changes to a Licence – Change Approval Authority (Policy Rationale; Policies - 4.1.2; 4.1.3; Change Approval Authority Roles and Responsibilities) Hours of Operation – Introduction Hours of Operation – Hours of Sale (Policy Rationale) Hours of Operation – Special Events (Policy Rationale) Hours of Operation – Alternate Use (Policy Rationale) Premises – Patron Capacity (Policy Rationale) Liquor Service and Sales – Special Conditions (Clubs) Licensee Relationships with Manufacturers – Consumer Taste Trials (Policy Rationale; Policies - 12.3.2) Liquor Service and Sales – Dispensers and Drink Sizes (Policy Rationale; Policies - 7.4.1) Licensee Relationships with Manufacturers – Promotional Items (Policies – 12.2.5) Licensee Relationships with Manufacturers- Manufacturer Hospitality and Educational Activities (Policies 12.5.2) Business Ownership and Changes to a Licence – Dormant Liquor Primary Licences (Policy Rationale; Policies – 4.6.1) Liquor Service and Sales – Special Conditions (Downhill Ski Resort Areas; Policies – 7.7.) Minors – General Conditions (Policy Rationale; Policies – 10.1.1; 10.1.3) INDEX Page 10 Liquor Licensing Policy Manual Terms & Phrases Draught beer Section # 7.3 7.4 7.6 7.7 Drink sizes Drive through LRS 7.4 3.4 Section Name Liquor Service and Sales – Pricing (Policy Rationale) Liquor Service and Sales – Dispensers and Drink Sizes (Policy Rationale; Policies - 7.4.3) Liquor Service and Sales – Off-Premises Sales (Policies 7.6.4) Liquor Service and Sales – Special Conditions (Stadiums and Concert Halls – Tied House Exemption) Liquor Service and Sales – Dispensers and Drink Sizes Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Plans Approval Guidelines for Licensee Retail Stores) E Economic viability 2.1 General Information – Operating Environment (footnotes) Educational Events and Activities 12.1 12.5 Licensee Relationships with Manufacturers – General Conditions (Policies 12.1.3) Licensee Relationships with Manufacturers Manufacturer Hospitality and Educational Activities (Policy Rationale; Policies – 12.5.3) Employee consumption 8.2 Management and Controls of a Licensed Establishment – Consumption by Employees (Policies - 8.2.1; 8.2.2) Employment of minors 10.1 Minors – General Conditions (Policy Rationale; Policies 10.1.8; 10.1.9) Enforcement action 2.1 General Information – Operating Environment: Branch Organization and Function Business Ownership and Changes to a Licence – Change Approval Authority (Policies - 4.1.4; 4.1.5) 4.1 Enforcement record (see Compliance history) 3.2 3.7 Licensing Process – Stage 2: Applicant Eligibility Assessment (Policies - 3.2.2) Licensing Process – Licensing Renewals (Policy Rationale; Policies - 3.7.1) INDEX Page 11 Liquor Licensing Policy Manual Terms & Phrases Entertainment Section # Section Name 2.2 General Information – Licence Categories (Background; Liquor-Primary Licence; Food-Primary Licence) Licensing Process – Stage 1: Application for a New Licence (Policy Rationale; Policies - 3.1.1) Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Plans Approval Guidelines) Licensing Process – Licence Amendments (Policy Rationale; Policies - 3.5.2) Premises – Patron Capacity (Policy Rationale) Premises – Outdoor Patios (Policy Rationale) Premises – Adjoining Licensed and Unlicensed Areas (Policy Rationale; Policies - 6.5.2; 6.5.3; 6.5.4; 6.5.5; 6.5.6) Premises – Restaurant Operating Details and Furnishings (Policies - 6.7.1) Liquor Service and Sales – Special Conditions (Stadiums) Minors – General Conditions (Policy Rationale; Policies 10.1.3; 10.1.6; 10.1.8) Minors – Minors as Entertainers (Policies - 10.2.1; 10.2.2) Entertainment – General Conditions Entertainment – Live Performances Entertainment – Audio, Film, Video and Television Entertainment – Patron Participation and NonParticipation Entertainment Entertainment – Games in a Licensed Establishment Entertainment – Gambling in a Licensed Establishment Licensee Relationships with Manufacturers – General Conditions (Policies - 12.1.2) Licensee Relationships with Manufacturers—Theme Night Promotions (Policies - 12.4.3) Licensee Relationships with Manufacturers— Manufacturer Hospitality and Educational Activities (Policy Rationale; Policies- 12.5.3) 3.1 3.4 3.5 6.3 6.4 6.5 6.7 7.7 10.1 10.2 11.1 11.2 11.3 11.4 11.5 11.6 12.1 12.4 12.5 Entrees – food service 2.2 General Information – Licence Categories (Food Primary Licence) Event driven licenses 7.7 Exotic dancers 11.2 Special conditions – stadiums, concert halls and convention centres- event driven – live events only (Policy Rationale; Policies-7.7.7) Entertainment – Live Stage Performances (Policy Rationale; Policies - 11.2.2; 11.2.3; 11.2.4) External share transfer 4.3 Business Ownership and Changes to a Licence – Changes in Ownership or Sale of a Licensed Establishment (Policy Rationale; Policies - 4.3.1; 4.3.3;5.3.6; 4.3.7) INDEX Page 12 Liquor Licensing Policy Manual Terms & Phrases Section # Section Name Faulty keg 7.5 Liquor Service and Sales – Replacement of Faulty Keg or Spoiled Product by Brewer’s Agent (Policy Rationale; Policies - 7.5.1; 7.5.2) Fees (See also Application fees and Licence fees) 2.2 General Information – Licence Categories (Liquor Primary Club Licence) Licensing Process – Stage 1: Application for a New Licence (Policy Rationale) Business Ownership and Changes to a Licence – Legal Name/ Internal Ownership Changes (Policy Rationale) Entertainment – Games in a Licensed Establishment (Policy Rationale; Policies - 11.5.4; 11.5.6) Entertainment – Gambling in a Licensed Establishment (Policy Rationale; Policies – 11.6) F 3.1 4.2 11.5 11.6 Fetal Alcohol Syndrome warning signs 13.1 Advertising and Signage – General Conditions (Policy Rationale; Policies - 13.1.6) Films 11.3 11.4 Entertainment – Audio, Film, Video and Television Entertainment – Patron Participation and NonParticipation Entertainment (Policy Rationale) Financial records 2.2 General Information – Licence Categories (Food Primary Licence) Premises – Restaurant Operating Details and Furnishings (Policy Rationale; Policies - 6.7.1) 6.7 Fire authorities approval, Fire Services Act 3.4 6.2 6.3 11.1 Firearms 8.3 Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Policies - 3.4.3; 3.4.5; 3.4.6) Premises – Structural Alterations (Policies - 6.2.2; 6.2.3) Premises – Patron Capacity (Policies - 6.3.1, 6.3.4) Entertainment – General Conditions (Policies - 11.1.3) Management and Controls of a Licensed Establishment – Management of Patron Conduct (Policies - 8.3.1) INDEX Page 13 Liquor Licensing Policy Manual Terms & Phrases First Nation Section # 2.2 3.3 3.4 3.5 4.4 5.1 6.2 6.3 6.4 7.6 7.7 11.1 11.4 Fit and proper person 3.2 4.3 Flatware (cutlery) 2.2 6.7 Floor plans 3.4 6.1 6.2 6.3 Section Name General Information – Licence Categories (Liquor Primary Licence; Food Primary Licence) Licensing Process – Stage 3: Site and Community Assessment (Policy Rationale; Policies – 3.3.3 – 3.3.14) Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Policy Rationale; Policies - 3.4.1; 3.4.6; 3.4.7; 3.4.13; Plans Approval Guidelines for Winery Lounge and Picnicking Endorsement) Licensing Process – Licence Amendments Business Ownership and Changes to a Licence – Relocation of a Licensed Establishment (Policy Rationale; Policies - 4.4.3) Hours of Operation – Hours of Sale (Policy Rationale; Policies - 5.1.2; 5.1.3; 5.1.6; Hours of Sale by Licence and Establishment Type) Premises – Structural Alterations Premises – Patron Capacity Premises – Outdoor Patios Liquor Service and Sales – Off-Premises Sales (Policy Rationale) Liquor Service and Sales – Special Conditions (Motor Vessels; Policies - 7.7.3) Entertainment – General Conditions (Policies - 11.1.1) Entertainment – Patron Participation and NonParticipation Entertainment (Policy Rationale; Policies 11.4.2; 11.4.4) Licensing Process – Stage 2: Applicant Eligibility Assessment (Policy Rationale; Policies – 3.2.2; 3.2.6; 3.2.7) Business Ownership and Changes to a Licence – Changes in Ownership or Sale of a Licensed Establishment (Policies - 4.3.9) General Information – Licence Categories (Food Primary Licence) Premises – Restaurant Operating Details and Furnishings (Policy Rationale) Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Policies - 3.4.4; 3.4.8; 3.4.10) Premises – Posting of Licence and Access to Floor Plans Premises – Structural Alterations (Policy Rationale) Premises – Capacity (Policies - 6.3.4) Food Demonstrations – see Test kitchen in licensee retail store INDEX Page 14 Liquor Licensing Policy Manual Terms & Phrases Food fairs, licensing of Section # 2.2 3.1 Food service 2.2 3.1 3.4 6.6 6.7 7.7 9.1 12.3 12.4 Free drinks Free samples – See Consumer Taste Trials Free product samples – See Product Samples Furnishings Section Name General Information – Licence Categories (Food Primary Licence) Licensing Process – Stage 1: Application for a New Licence (Policies - 3.1.2) General Information – Licence Categories (Liquor Primary Licence; Food Primary Licence) Licensing Process – Stage 1: Application for a New Licence (Policy Rationale; Policies - 3.1.2; Licensing Process – Stage 4: Building Assessment and Issue of Licence (Plans Approval Guidelines for Liquor Primary Licensing, Food Primary Licensing, Winery Lounge, Special Event, Picnicking, or Tour Area Endorsements) Premises – Restaurant Lounges (Policy Rationale; Policies - 6.6.1) Premises – Restaurant Operating Details and Furnishings (Policy Rationale) Liquor Service and Sales – Special Conditions (Policies 7.7.1) Food Service – General Conditions Licensee Relationships with Manufacturers – Consumer Taste Trials (Policies - 12.3.3) Licensee Relationships with Manufacturers—Theme Night Promotions (Policy Rationale) 7.3 12.4 Liquor Service and Sales – Pricing (Policies - 7.3.1) Licensee Relationships with Manufacturers – Theme Night Promotions (Policies 12.4.4; 12.4.5) 3.4 Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Plans Approval Guidelines for Food Primary Licensing) Premises – Restaurant Lounges (Policy Rationale) Premises – Restaurant Operating Details and Furnishings Entertainment – Patron Participation and NonParticipation Entertainment (Policies - 11.4.3) 6.6 6.7 11.4 INDEX Page 15 Liquor Licensing Policy Manual Terms & Phrases Section # Section Name 6.5 Premises – Adjoining Licensed and Unlicensed Areas (Policy Rationale) Entertainment – General Conditions (Policy Rationale) Entertainment – Audio, Film, Video and Television (Policy Rationale) Entertainment – Games in a Licensed Establishment (Policy Rationale; Policies - 11.5.3) Entertainment – Gambling in a Licensed Establishment Licensee Relationships with Manufacturers –Theme Night Promotions (12.4.3) General Information – Licence Categories (Liquor Primary Licence; Food Primary Licence) Licensing Process – Stage 1: Application for a New Licence (Policy Rationale; Policies - 3.1.1; Plans Approval Guidelines for Liquor Primary Licensing; Plans Approval Guidelines for Food Primary Licensing) Premises – Restaurant Lounges (Policy Rationale; Policies - 6.6.1) Premises – Restaurant Operating Details and Furnishings (Policies - 6.7.1) Entertainment – General Conditions Entertainment – Audio, Film, Video and Television (Policy Rationale) Entertainment – Patron Participation and NonParticipation Entertainment Entertainment – Games in a Licensed Establishment Entertainment – Gambling in a Licensed Establishment Licensee Relationships with Manufacturers – General Conditions (Policies – 12.1.2) Licensee Relationships – Theme Night Promotions (Policies – 12.4.3) G Gambling/Gaming 11.1 11.3 11.5 11.6 12.4 Games 2.2 3.1 6.6 6.7 11.1 11.3 11.4 11.5 11.6 12.1 12.4 Gaming Policy and Enforcement Branch Glassware 11.6 3.4 12.1 12.2 12.3 12.4 Entertainment – Gambling in a Licensed Establishment (Policy Rationale; Policy - 11.6.4) Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Plans Approval Guidelines for Liquor Primary Licensing of Stadiums) Licensee Relationships with Manufacturers –General Conditions (Policies – 12.1.1; 12.1.2) Licensee Relationships with Manufacturers – Promotional Items (Policies - 12.2.2) Licensee Relationships with Manufactures – Consumer Taste Trials (Policies – 12.3.5) Licensee Relationships with Manufacturers – Theme Night Promotions (Policies – 12.4.5) INDEX Page 16 Liquor Licensing Policy Manual Terms & Phrases Golf course Section # 7.7 10.1 Green lined area 7.7.13 Section Name Liquor Service and Sales – Special Conditions (Policy Rationale; Policies - 7.7.2) Minors – General Conditions(Policy Rationale; Policies 10.1.3) Section 27 green lined areas (Policies 7.7.13) H Happy hour 7.3 Hospitality 2.1 2.2 3.1 6.5 7.7 12.1 12.5 Hours of operation 2.2 5.1 5.2 6.4 6.7 7.7 8.3 Hours of sale 5.1 5.2 7.6 8.1 8.2 11.4 Liquor Service and Sales – Pricing (Policy Rationale; Policies - 7.3.1) General Information – Operating Environment (Operating Assumptions) General Information – Licence Categories (Background; Liquor Primary Licence) Licensing Process – Stage 1: Application for a New Licence (Policy Rationale; Policies - 3.1.1) Premises – Adjoining Licensed and Unlicensed Areas (Policies - 6.5.4; 6.5.5) Liquor Service and Sales – Special Conditions (Motor Vessels) Licensee Relationships with Manufactures – General Conditions (Policies – 12.1.1; 12.1.3) Licensee Relationships with Manufacturers – Manufacturer Hospitality and Educational Activities (Policy Rationale; Policies - 12.5.3; 12.5.4) General Information – Licence Categories (Food Primary Licence) Hours of Operation – Hours of Sale (Policies - 5.1.2; 5.1.7) Hours of Operation – Special Events (Policy Rationale) Premises – Outdoor Patios (Policy Rationale) Premises – Restaurant Operating Details and Furnishings (Policies - 6.7.1) Liquor Service and Sales – Special Conditions (Room Service) Management and Controls of a Licensed Establishment – Management of Patron Conduct (Policy Rationale) Hours of Operation – Hours of Sale Hours of Operation – Special Events (Policy Rationale; Policies - 5.2.1) Liquor Service and Sales – Off-Premises Sales (Policies 7.6.3) Management and Controls of a Licensed Establishment – General Consumption (Policies - 8.1.5) Management and Controls of a Licensed Establishment – Consumption by Employees (Policy Rationale; Policies 8.2.2) Entertainment – Patron Participation and NonParticipation Entertainment (Policies - 11.4.2; 11.4.5) INDEX Page 17 Liquor Licensing Policy Manual INDEX Page 18 Liquor Licensing Policy Manual Terms & Phrases Human Rights Act Section # 8.3 Section Name Management and Controls of a Licensed Establishment – Management of Patron Conduct (Policy Rationale) I Identification 10.1 Incomplete application 3.1 Individual name change 4.2 Inspection 3.4 4.1 6.1 6.4 7.2 7.5 9.1 11.4 Inducements 7.3 11.5 11.6 12.1 Minors – General Conditions (Policy Rationale; Policies 10.1.10) Licensing Process – Stage 1: Application for a New Licence (Policies - 3.1.4; 3.1.6) Business Ownership and Changes to a Licence – Legal Name/ Internal Ownership Changes (Policies - 4.2.2) Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Policies - 3.4.10; 3.4.11; 3.4.12) Business Ownership and Changes to a Licence – Change Approval Authority (Policies - 4.1.5) Premises – Posting of Licence and Access to Approved Plans Premises – Outdoor Patios (Policies - 6.4.2) Liquor Service and Sales – Ordering Liquor (Policy Rationale) Liquor Service and Sales – Replacement of Faulty Keg or Spoiled Product by Brewer’s Agent (Policies - 7.5.2) Food Service – General Conditions (Policies - 9.1.4) Entertainment – Patron Participation and NonParticipation Entertainment (Policies - 11.4.5) Liquor Service and Sales – Pricing (Policy Rationale) Entertainment – Games in a Licensed Establishment (Policy Rationale) Entertainment – Gambling in a Licensed Establishment (Policy Rationale) Licensee Relationships with Manufacturers – General Conditions (Policy Rationale; Policies - 12.1.2) Internal amalgamation 4.2 Business Ownership and Changes to a Licence – Legal Name/ Internal Ownership Changes (Policy Rationale; Policies - 4.2.4) Internal ownership 4.2 Business Ownership and Changes to a Licence – Legal Name/ Internal Ownership Changes (Policy Rationale) Business Ownership and Changes to a Licence – Change in Ownership or Sale of a Licensed Establishment (Policy Rationale) Business Ownership and Changes to a Licence – Valid Interest in an Establishment (Policy Rationale) 4.3 4.5 INDEX Page 19 Liquor Licensing Policy Manual Terms & Phrases Internal transfer of shares Internet Section # 4.2 11.1 11.3 Intoxicated 2.1 5.3 7.7 8.1 8.3 8.4 10.1 13.1 Section Name Business Ownership and Changes to a Licence – Legal Name/ Internal Ownership Changes (Policy Rationale) Entertainment – General Conditions (Policies - 11.1.4; 11.1.5) Entertainment – Audio, Film, Video and Television (Policy Rationale) General Information – Operating Environment (Operating Assumptions; Regard for Community Standards) Hours of Operation – Alternate Use (Policy Rationale) Liquor Service and Sales – Special Conditions (Motor Vessels) Management and Controls of a Licensed Establishment – General Consumption (Policy Rationale; Policies - 8.1.1) Management and Controls of a Licensed Establishment – Management of Patron Conduct (Policy Rationale; Policies - 8.3.1) Management and Controls of a Licensed Establishment – Serving It Right Program (Policy Rationale) Minors – General Conditions (Policies - 10.1.5) Advertising and Signage (Policies - 13.1.1) K Karaoke 3.4 11.3 11.4 11.5 Kiosk – golf course 7.7 10.1 Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Plans Approval Guidelines for Food Primary Licensing) Entertainment – Audio, Film, Video and Television (Policy Rationale) Entertainment – Patron Participation and NonParticipation Entertainment (Policy Rationale; Policies 11.4.1; 11.4.4; 11.4.5) Entertainment – Games in a Licensed Establishment (Policy Rationale) Liquor Service and Sales – Special Conditions (Golf Course Kiosks, Take-out Windows, and Beverage Carts; Policies - 7.7.2) Minors – General Conditions (Policy Rationale; Policies 10.1.3) INDEX Page 20 Liquor Licensing Policy Manual Terms & Phrases Kitchen and equipment Section # 2.2 3.1 3.4 6.7 12.3 Knife, as a weapon in a licensed premise 8.3 Section Name General Information – Licence Categories (Food Primary Licence) Licensing Process – Stage 1: Application for a New Licence (Policies - 3.1.2) Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Plans Approval Guidelines for Liquor Primary Licensing; Plans Approval Guidelines for Food Primary Licensing) Premises – Restaurant Operating Details and Furnishings (Policy Rationale; Policies - 6.7.1) Licensee Relationships with Manufacturers – Consumer Taste Trials (Policies – 12.3.2) Management and Controls of a Licensed Establishment – Management of Patron Conduct (Policy Rationale; Policies - 8.3.1) L Late renewal of licence 3.7 LDB Lease 3.2 4.0 4.2 4.3 4.5 Legal entity changes 4.2 Legal entity status 4.3 Licence amendment 3.0 3.5 5.1 6.3 6.4 Licensing Process – Licensing Renewals (Policy Rationale; Policies - 3.7.4) See Liquor Distribution Branch Licensing Process – Stage 2: Applicant Eligibility Assessment (Policy Rationale; Policies - 3.2.4) Business Ownership and Changes to a Licence – Introduction Business Ownership and Changes to a Licence – Legal Name/ Internal Ownership Changes (Policy Rationale) Business Ownership and Changes to a Licence – Change in Ownership or Sale of a Licensed Establishment (Policy Rationale) Business Ownership and Changes to a Licence – Valid Interest in an Establishment (Policy Rationale; Policies 4.5.1; 4.5.2) Business Ownership and Changes to a Licence – Legal Name/ Internal Ownership Changes (footnotes) Business Ownership and Changes to a Licence – Change in Ownership or Sale of a Licensed Establishment (Policies 4.3.1; 4.3.4) Licensing Process – Introduction Licensing Process – Licence Amendments Hours of Operation – Hours of Sale (Policies - 5.1.2; 5.1.3; Hours of Sale by Licence and Establishment Type) Premises – Capacity (Policy Rationale; Policies - 6.3.2; 6.3.3) Premises – Outdoor Patios (Policy Rationale; Policies – 6.4.1; 6.4.3) INDEX Page 21 Liquor Licensing Policy Manual Terms & Phrases Licence categories Section # 1.0 2.2 10.2 Licence fee (see also Fees and Application fees) Licence renewal 3.4 Licence suspension 5.3 8.3 Licence transfer 4.2 3.7 8.4 4.3 8.4 Licensee advertising – See Advertising Licensee/employee consumption of liquor 8.2 12.5 Licensee name 4.2 Licensee name change 4.2 Lighting 2.2 6.7 Line of sight in establishment 8.3 3.4 6.2 6.5 11.2 Section Name Introduction – Introduction (Purpose of This Manual) General Information – Licence Categories (Background) Minors – Minors as Entertainers (Policy Rationale) Licensee Advertising – Signs and Names (Policies 12.2.3; 12.2.4) Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Policy Rationale; Policies - 3.4.12) Licensing Process – Licence Renewals (Policy Rationale) Management and Controls of a Licensed Establishment – Serving It Right Program (Policies - 8.4.2) Hours of Operation – Alternate Use (Policies - 5.3.3) Management and Controls of a Licensed Establishment – Management of Patron Conduct (Policies - 8.3.3) Business Ownership and Changes to a Licence – Legal Name/ Internal Ownership Changes (Policies -4.2.7) Business Ownership and Changes to a Licence – Change in Ownership or Sale of a Licensed Establishment (Policy Rationale; Policies - 4.3.1; 4.3.4; 4.3.5; 4.3.9) Management and Controls of a Licensed Establishment – Serving It Right Program (Policies - 8.4.2) Consumption by Employees (Policy Rationale; Policies – 8.2.1, 8.2.2) Licensee Relationships with Manufacturers – Manufacturer Hospitality and Educational Activities (Policies - 12.5.2) Business Ownership and Changes to a Licence – Legal Name/ Internal Ownership Changes (Policy Rationale; Policies - 4.2.1) Business Ownership and Changes to a Licence – Legal Name/ Internal Ownership Changes (Policies - 4.2.1) General Information – Licence Categories (Food Primary Licence) Premises – Restaurant Operating Details and Furnishings Management and Controls of a Licensed Establishment – Management of Patron Conduct (Policy Rationale) Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Plans Approval Guidelines for Liquor Primary Licensing) Premises – Structural Alterations (Policies - 6.2.1; 6.2.3) Premises – Adjoining Licensed and Unlicensed Areas (Policies - 6.5.2; 6.5.3; 6.5.5; 6.5.6) Entertainment – Live Stage Performances (Policy Rationale; Policies - 11.2.3) INDEX Page 22 Liquor Licensing Policy Manual Terms & Phrases Liquor consumption Section # 2.2 3.4 7.1 8.1 11.2 12.3 Liquor Distribution Branch 2.1 2.2 3.4 7.1 7.2 7.3 7.7 11.5 12.2 12.3 Liquor in washrooms 8.1 Liquor licence categories 2.2 Liquor Licensing Committee 3.2 3.3 Liquor Manufacturer Section Name General Information – Licence Categories (Background) Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Policies - 3.4.8; 3.4.10) Liquor Sale and Service – Type of Liquor Sold (Policy Rationale) Management and Controls of a Licensed Establishment – General Consumption (Policy Rationale) Entertainment – Live Stage Performances (Policy Rationale) Licensee Relationships with Manufacturers – Consumer Taste Trials (Policy Rationale) General Information – Operating Environment (Branch Organization and Function) General Information – Licence Categories (Licensee Retail Store Licence; Manufacturer Licence) Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Policies - 3.4.13) Liquor Service and Sales – Type of Liquor Sold (Policy Rationale; Policies - 7.1.4) Liquor Service and Sales – Ordering Liquor (Policy Rationale; Policies - 7.2.2) Liquor Service and Sales – Pricing (Policy Rationale; Policies - 7.3.3; 7.3.4; 7.3.5) Liquor Service and Sales – Special Conditions (Motor Vessels; Policies - 7.7.3) Entertainment – Games in a Licensed Establishment (Policies – 11.5.4; 11.5.5; 11.5.6) Licensee Relationships with Manufacturers—Promotional Items (Policies- 12.2.3; 12.2.4) Licensee Relationships with Manufacturers—Consumer Taste Trials (Policies- 12.3.1) Management and Controls of a Licensed Establishment – General Consumption (Policy Rationale; Policies - 8.1.3) General Information – Licence Categories (Background; Liquor Primary Club Licence; Food Primary Licence) Licensing Process Stage 2: Applicant Eligibility Assessment (Policies – 3.2.6) Licensing Process – Stage 3: Site and Community Assessment (Liquor Primary Only) (Policies - 3.3.16) See Manufacturer of Liquor INDEX Page 23 Liquor Licensing Policy Manual Terms & Phrases Liquor prices Section # 7.3 12.2 12.3 12.4 12.5 13.1 Liquor primary club 1.0 2.2 3.2 3.3 4.2 4.3 4.5 5.1 6.3 6.4 6.7 7.6 7.7 8.1 10.1 Section Name Liquor Service and Sales – Pricing Licensee Relationships with Manufacturers –Promotional Items (Policies – 12.2.4; 12.2.5) Licensee Relationships with Manufacturers –Consumer Taste Trials (Policies – 12.3.4; 12.3.6) Licensee Relationships with Manufacturers – Theme Night Promotions (Policies – 12.4.4) Licensee Relationships with Manufacturers – Manufacturer Hospitality and Educational Activities (Policies – 12.5.1) Advertising and Signage– General Conditions (Policies 13.1.1) Introduction – Introduction (Purpose and Format of This Manual) General Information – Licence Categories (Liquor Primary Club Licence) Licensing Process (Policy Rationale) Licensing Process – Stage 3: Site and Community Assessment (Liquor Primary Only) (Policy Rationale) Business Ownership and Changes to a Licence – Legal Name/ Internal Ownership Changes (Policies - 4.2.6) Business Ownership and Changes to a Licence – Change in Ownership or Sale of a Licensed Establishment (Policies - 4.3.8) Business Ownership and Changes to a Licence – Valid Interest in an Establishment (Policies - 4.5.5) Hours of Operation – Hours of Sale (Policies - 5.1.3; Hours of Sale by Licence and Establishment Type) Premises – Capacity (Policies - 6.3.1; 6.3.3; 6.3.4) Premises – Outdoor Patios (Policies - 6.4.1; 6.4.3) Premises – Restaurant Operating Details and Furnishings (Policies – 6.7.1) Liquor Service and Sales – Off-Premises Sales (Policy Rationale) Liquor Service and Sales – Special Conditions (Policies 7.7.1) Management and Controls of a Licensed Establishment – General Consumption (Policy Rationale; Policies - 8.1.5) Minors – General Conditions (Policy Rationale; Policies 10.1.3) INDEX Page 24 Liquor Licensing Policy Manual Terms & Phrases Liquor register Section # 7.2 7.5 12.5 Liquor service bar 3.4 Liquor Vendors 6.2 6.4 10.1 7.7 Section Name Liquor Service and Sales – Ordering Liquor (Policies 7.2.1; 7.2.2) Liquor Service and Sales – Replacement of Faulty Keg or Spoiled Product by Brewer’s Agent (Policy Rationale; Policies - 7.5.1) Licensee Relationships with Manufacturers – Manufacturer Hospitality and Educational Activities (Policies – 12.5.2) Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Policies - 3.4.4; Plans Approval Guidelines for Liquor Primary Licensing; Plans Approval Guidelines for Liquor Primary Licensing) Premises – Structural Alterations (Policies - 6.2.13) Premises – Outdoor Patios (Policies - 6.4.2) Minors – General Conditions (Policies - 10.1.5) Liquor Service and Sales – Special Conditions: Stadiums (Policies – 7.7.6) INDEX Page 25 Liquor Licensing Policy Manual Terms & Phrases Local government Section # 2.1 2.2 3.2 3.3 3.4 3.5 3.7 4.1 4.4 5.1 6.2 6.3 6.4 7.6 7.7 11.1 11.4 Section Name General Information – Operating Environment (Branch Organisation and Function) General Information – Licence Categories (Liquor Primary Licence; Food Primary Licence) Licensing Process – Stage 2: Applicant Eligibility Assessment (Policies - 3.2.2) Licensing Process – Stage 3: Site and Community Assessment (Liquor Primary Only) (Policy Rationale; Policies – 3.3.3; 3.3.4 - 3.3.11; 3.3.13; 3.3.14) Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Policy Rationale; Policies - 3.4.1; 3.4.6; 3.4.7; 3.4.13; Plans Approval Guidelines for Winery Lounge or Picnicking Endorsement) Licensing Process – Licence Amendments (Policy Rationale) Licensing Process – Licence Renewals (Policies - 3.7.1) Business Ownership and Changes to a Licence – Change Approval Authority (Policies - 4.1.5) Business Ownership and Changes to a Licence – Relocation of a Licensed Establishment (Policy Rationale; Policies - 4.4.3) Hours of Operation – Hours of Sale (Policy Rationale; Policies - 5.1.2; 5.1.3; 5.1.6) Premises – Structural Alterations (Policy Rationale) Premises – Capacity Premises – Outdoor Patios (Policy Rationale) Liquor Service and Sales – Off-Premises Sales (Policy Rationale; Policies - 7.6.2) Liquor Service and Sales – Special Conditions (Motor Vessels; Policies - 7.7.3) Entertainment – General Conditions (Policy Rationale; Policies - 11.1.4) Entertainment – Patron Participation and NonParticipation Entertainment (Policy Rationale; Policies 11.4.2; 11.4.4) INDEX Page 26 Liquor Licensing Policy Manual Terms & Phrases Lottery tickets Section # 2.2 9.1 11.6 Lounge endorsement restaurants 1.0 2.2 6.3 6.6 7.1 13.1 Lounge endorsement–winery Section Name General Information – Licence Categories ( Licensee Retail Store Licence) Food Service – General Conditions (Policy Rationale; Policies - 9.1.6) Entertainment – Gambling in a Licensed Establishment (Policies - 11.6.3) Introduction – Introduction (Purpose and Format of This Manual) General Information – Licence Categories (Food Primary Licence) Premises – Capacity (Policies - 6.3.3) Premises – Restaurant Lounges Liquor Service and Sales – Type of Liquor Sold Advertising and Signage – General Conditions ( Policies 13.1.3) See Winery lounge and special event endorsements M Management contract 4.0 4.5 Terms & Phrases Manufacturers of liquor Section # 2.1 Business Ownership and Changes to a Licence – Introduction Business Ownership and Changes to a Licence – Valid Interest in a Licensed Establishment (Policy Rationale; Policies - 4.5.5) Section Name General Information – Operating Environment (Client INDEX Page 27 Liquor Licensing Policy Manual 2.2 3.2 6.4 7.1 7.5 7.7 11.5 12.1 12.2 12.3 12.4 12.5 13.1 Meat draws 11.6 Menu 2.2 6.6 6.7 7.3 8.2 12.2 Terms & Phrases Groups) General Information – Licence Categories (Background; U-Brew/U-Vin Licence; Manufacturer Licence) Licensing Process – Stage 2: Applicant Eligibility Assessment (Policy Rationale; Policies - 3.2.1; 3.2.5 ) Premises – Outdoor Patios (Policy Rationale) Liquor Service and Sales – Type of Liquor Sold (Policy Rationale) Liquor Service and Sales – Replacement of Faulty Keg or Spoiled Product by Brewer’s Agent (Policy Rationale) Liquor Service and Sales – Special Conditions (Policies 7.7.8) Entertainment – Games in a Licensed Establishment (Policy Rationale; Policies - 11.5.4 – 11.5.6) Licensee Relationships with Manufacturers – General Conditions (Policy Rationale; Policies - 12.1.1; 12.1.2; 12.1.3; 12.1.4) Licensee Relationships with Manufacturers –Promotional Items (Policy Rationale; 12.2.1; 12.2.2; 12.2.3; 12.2.4; 12.2.5) Licensee Relationships with Manufacturers – Consumer Taste Trials (Policy Rationale; Policies- 12.3.1; 12.3.2; 12.3.3;12.3.4; 12.3.6; 12.3.7) Licensee Relationships with Manufacturers – Theme Night Promotion (Policy Rationale; Policies- 12.4.2; 12.4.3; 12.4.4) Licensee Relationships with Manufacturers – Manufacturer Hospitality and Educational Activities (Policies – 12.5.2; 12.5.3; 12.5.4; 12.5.5) Advertising and Signage – General Conditions (Policies – 13.1.1) Entertainment – Gambling in a Licensed Establishment (Policy Rationale; Policies - 11.6) General Information – Licence Categories (Food Primary Licence) Premises – Restaurant Lounges (Policies - 6.6.1) Premises – Restaurant Operating Details and Furnishings (Policy Rationale; Policies - 6.7.1) Liquor Service and Sales – Pricing (Policies - 7.3.2) Management and Controls of a Licensed Establishment – Consumption by Employees (Policy Rationale) Licensee Relationships with Manufacturers – Promotional Items (Policies- 12.2.1; 12.2.2) Section Section Name INDEX Page 28 Liquor Licensing Policy Manual # 2.2 Military mess (See also Liquor Primary Club) 10.1 Mini-bar 7.7 8.1 General Information – Licence Categories (Liquor Primary Licence) Minors – General Conditions (Policy Rationale; Policies 10.1.3) Liquor Service and Sales – Special Conditions (Policy Rationale; Mini-bars, Policies - 7.7.5) Management and Controls of a Licensed Establishment – General Consumption (Policy Rationale; Policies - 8.1.5) INDEX Page 29 Liquor Licensing Policy Manual Terms & Phrases Minors Section # 2.1 2.2 3.1 3.2 5.3 6.4 6.5 7.1 7.7 8.2 8.3 8.4 10.0 10.1 10.2 11.2 11.3 11.4 11.6 12.3 Mobile food providers – eg. Hot dog vendors 2.2 3.1 Motion Picture Act 11.3 Section Name General Information – Operating Environment (Operating Assumptions; Regard for Community Standards) General Information – Licence Categories (Licensee Retail Store Licence) Licensing Process – Stage 1: Application for a New Licence (Policy Rationale; Policies - 3.1.1) Licensing Process – Stage 2: Applicant Eligibility Assessment (Policies - 3.2.3 ) Hours of Operation – Alternate Use (Policy Rationale; Policies - 5.3.2; 5.3.3) Premises – Outdoor Patios (Policy Rationale) Premises – Adjoining Licensed and Unlicensed Areas (Policy Rationale) Liquor Service and Sales – Type of Liquor Sold (Policy Rationale) Liquor Service and Sales – Special Conditions (Room Service; Stadiums; Downhill Ski Resort Areas; Policies 7.7.6; 7.7.9) Management and Controls of a Licensed Establishment – Consumption by Employees (Policy Rationale) Management and Controls of a Licensed Establishment – Management of Patron Conduct (Policy Rationale; Policies - 8.3.1) Management and Controls of a Licensed Establishment – Serving It Right Program (Policy Rationale) Minors – Introduction Minors – General Conditions Minors – Minors as Entertainers Entertainment – Live Stage Performances (Policy Rationale; Policies - 11.2.3, 11,2.4) Entertainment – Audio, Film, Video and Television (Policies - 11.3.2) Entertainment – Patron Participation and NonParticipation Entertainment (Policy Rationale) Entertainment – Gambling in a Licensed Establishment (Policy Rationale) Licensee Relationships with Manufacturers – Relationships with Manufacturers – Consumer Taste Trials (Policy Rationale; Policies - 12.3.6 ) General Information – Licence Categories (Food Primary Licence) Licensing Process – Stage 1: Application for a New Licence (Policies – 3.1.2) Entertainment – Audio, Film, Video and Television (Policies - 11.3.2) INDEX Page 30 Liquor Licensing Policy Manual Terms & Phrases Motor vehicle Section # 2.2 3.1 Motor Vessel 3.2 7.7 10.1 Movie theatre 7.7 Music 11.2 11.3 11.4 Section Name General Information – Licence Categories (Liquor Primary Licence) Licensing Process – Stage 1: Application for a New Licence (Policy Rationale; Policies - 3.1.1) Licensing Process – Applicant Eligibility Assessment (Policies – 3.2.4) Liquor Service and Sales – Special Conditions (Policy Rationale; Policies – 7.7.3) Minors – General Conditions (Policy Rationale; Policies – 10.1.3, 10.1.7) Conditions for liquor sales and service in movie theatres and live event theatres (Policies – 7.7.12) Entertainment – Live Stage Performances (Policy Rationale) Entertainment – Audio, Film, Video and Television (Policies - 11.3.2) Entertainment – Patron Participation and NonParticipation Entertainment (Policy Rationale; Policies 11.4.1) N Name change 4.2 Narcotic Control Act 3.2 New Year’s Eve Newspaper advertisement for licence applications 3.7 5.2 7.3 3.3 3.5 Business Ownership and Changes to a Licence – Legal Name/ Internal Ownership Changes Licensing Process – Stage 2: Applicant Eligibility Assessment (Policies - 3.2.2 ) Licensing Process – Licence Renewals (Policies - 3.7.1 ) Hours of Operation – Special Events (Policies - 5.2.1) Liquor Service and Sales – Pricing (Policy Rationale) Licensing Process – Stage 3: Site and Community Assessment (Policies - 3.3.15) Licensing Process – Licence Amendments (Policies 3.5.12) INDEX Page 31 Liquor Licensing Policy Manual Terms & Phrases Noise Section # 3.3 3.5 5.1 5.3 6.2 6.3 6.4 8.3 10.1 11.1 11.2 11.3 11.4 11.5 11.6 Non-alcoholic beverages 2.2 7.7 Notice of Intent 9.1 3.3 3.5 Section Name Licensing Process – Stage 3: Site and Community Assessment (Policies - 3.3.2) Licensing Process – Licence Amendments (Policy Rationale; Policies - 3.5.1; 3.5.2) Hours of Operation – Hours of Sale (Policy Rationale; Policies - 5.1.2) Hours of Operation – Alternate Use (Policy Rationale) Premises – Structural Alterations (Policy Rationale) Premises – Capacity (Policy Rationale; Policies - 6.3.2) Premises – Outdoor Patios Management and Controls of a Licensed Establishment – Management of Patron Conduct (Policy Rationale) Minors – General Conditions (Policies - 10.1.10) Entertainment – General Conditions (Policy Rationale; Policies - 11.1.2) Entertainment – Live Stage Performances (Policies 11.2.1) Entertainment – Audio, Film, Video and Television (Policies - 11.3.1) Entertainment – Patron Participation and NonParticipation Entertainment (Policy Rationale; Policies 11.4.2) Entertainment – Games in a Licensed Establishment (Policies - 11.5.1) Entertainment – Gambling in a Licensed Establishment (Policies - 11.6) General Information – Licence Categories (Liquor Primary Licence) Liquor Service and Sales – Special Conditions (Policies 7.7.2) Food Service – General Conditions Licensing Process – Stage 3: Site and Community Assessment (Policies - 3.3.15) Licensing Process – Licence Amendments (Policies 3.5.11) O Occupant load 3.4 3.5 6.2 6.3 6.5 Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Policy Rationale; Policies - 3.4.5; 3.4.6; 3.4.7; Plans Approval Guidelines) Licensing Process – Licence Amendments (Policies 3.5.1) Premises – Structural Alterations (Policies - 6.2.3) Premises – Capacity Premises – Adjoining Licensed and Unlicensed Areas (Policies - 6.5.2; 6.5.3; 6.5.5) INDEX Page 32 Liquor Licensing Policy Manual Terms & Phrases Officers of a club Section # 4.2 Off-premise sales 7.1 7.6 7.7 8.1 Operating environment Ordering liquor 13.1 2.1 7.2 Section Name Business Ownership and Changes to a Licence – Legal Name/ Internal Ownership Changes (Policies - 4.2.6) Liquor Service and Sales – Type of Liquor Sold (Policy Rationale) Liquor Service and Sales – Off-Premises Sales Liquor Service and Sales – Special Conditions (Room Service) Management and Controls of a Licensed Establishment – General Conditions (Policies - 8.1.2) Advertising and Signage (Policies -13.1.1) General Information – Operating Environment Liquor Service and Sales – Ordering Liquor P Pari-mutuel betting (offtrack) Parking 11.6 3.3 6.2 6.3 8.3 Partnerships 3.2 3.7 4.2 4.3 Patio 2.2 3.4 3.5 6.2 6.4 6.5 6.6 Patio umbrellas 12.2 Patron capacity 6.6 Entertainment – Gambling in a Licensed Establishment (Policy Rationale; Policy – 11.6.2) Licensing Process – Stage 3: Site and Community Assessment (Policies - .3.3.2) Premises – Structural Alterations (Policy Rationale) Premises – Capacity (Policy Rationale) Management and Controls of a Licensed Establishment – Management of Patron Conduct (Policy Rationale) Licensing Process – Stage 2: Applicant Eligibility Assessment (Policy Rationale; Policies - 3.2.2; 3.2.3 ) Licensing Process – Licence Renewals (Policies - 3.7.1 ) Business Ownership and Changes to a Licence – Legal Name/ Internal Ownership Changes (Policy Rationale; Policies - 4.2.1; 4.2.2) Business Ownership and Changes to a Licence – Change in Ownership or Sale of a Licensed Establishment (Policies - 4.3.1; 4.3.5) General Information – Licence Categories (Liquor Primary Licence; Food Primary Licence) Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Policies - 3.4.2; Plans Approval Guidelines) Licensing Process – Licence Amendments (Policy Rationale; Policies - 3.5.1) Premises – Structural Alterations (Policies - 6.2.1) Premises – Outdoor Patios Premises – Adjoining Licensed and Unlicensed Areas (Policy Rationale; Policies - 6.5.2) Premises – Restaurant Lounges (Policy Rationale; Policies - 6.6.3) Licensee Relationships with Manufacturers – Promotional Items (Policy Rationale; Policies - 12.2.2) Premises – Restaurant Lounges (Policy Rationale; INDEX Page 33 Liquor Licensing Policy Manual Policies - 6.6.4) Terms & Phrases Patron conduct Section # 8.3 11.1 11.4 11.6 Patron non-participation entertainment Patron participation entertainment 11.4 2.2 3.5 6.3 10.2 11.1 11.2 11.4 11.5 Person capacity 2.2 3.3 3.4 3.5 6.2 6.3 6.5 Personal history 6.6 3.1 Personal suitability factor Petitions 3.7 3.3 3.5 Section Name Management and Controls of a Licensed Establishment – Management of Patron Conduct Entertainment – General Conditions (Policy Rationale) Entertainment – Patron Participation and NonParticipation Entertainment (Policy Rationale) Entertainment – Gambling in a Licensed Establishment (Policy Rationale) Entertainment – Patron Participation and NonParticipation Entertainment General Information – Licence Categories (Food Primary Licence) Licensing Process – Licence Amendments (Policy Rationale; Policies - 3.5.2) Premises – Capacity (Policy Rationale) Minors – General Conditions (Policies - 10.2.2) Entertainment – General Conditions (Policy Rationale; Policies - 11.1.4; 11.1.6) Entertainment – Live Stage Performances (Policy Rationale) Entertainment – Patron Participation and NonParticipation Entertainment Entertainment – Games in a Licensed Establishment (Policy Rationale) General Information – Licence Categories (Liquor Primary Licence; Food Primary Licence) Licensing Process – Stage 3: Site and Community Assessment (Policies - 3.3.2) Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Policy Rationale; Policies - 3.4.4; 3.4.5; 3.4.6; 3.4.7) Licensing Process – Licence Amendments (Policy Rationale; Policies - 3.5.1) Premises – Structural Alterations (Policy Rationale; Policy - 6.2.2) Premises – Capacity Premises – Adjoining Licensed and Unlicensed Areas (Policy Rationale) Premises – Restaurant Lounges Licensing Process – Stage 1: Application for a New Licence (Policies – 3.1.5) Licensing Process – Licence Renewals (Policies - 3.7.1 ) Licensing Process – Stage 3: Site and Community Assessment (Liquor Primary Only) (Policies - 3.3.16) Licensing Process – Licence Amendments (Policies 3.5.12) INDEX Page 34 Liquor Licensing Policy Manual INDEX Page 35 Liquor Licensing Policy Manual Terms & Phrases Picnic and tour areas – winery endorsement Section # 1.0 2.2 3.4 4.4 4.5 5.1 6.5 7.1 7.3 8.1 9.1 10.1 10.2 11.1 11.2 11.3 11.4 11.5 Plans and plans approval guidelines 3.4 4.4 6.1 6.2 6.3 11.4 Section Name Introduction – Introduction (Purpose and Format of This Manual) General Information – Licence Categories (Manufacturer Licence) Licensing Process – Stage 4 Building Assessment and Issue of a Licence (Plans Approval Guidelines for Winery Lounge, Special Event, Picnicking or Tour Area Endorsements) Business Ownership and Changes to a Licence – Relocation of a Licensed Establishment (Policies - 4.4.3) Business Ownership and Changes to a Licence – Valid Interest in a Licensed Establishment (Policies - 4.5.5) Hours of Operation – Hours of Sale (Policy Rationale; Hours of Sale by Licensed Establishment) Premises- Adjoining Licensed and Unlicensed Areas Liquor Service and Sales – Types of Liquor Sold (Policy Rationale; Policies - 7.1.5) Liquor Service and Sales – Pricing (Policies - 7.3.6) Management and Controls of a Licensed Establishment – General Consumption (Policy Rationale; Policies - 8.1.8) Food Service – General Conditions (Policy Rationale; Policies - 9.1.1) Minors – General Conditions (Policy Rationale; Policies 10.1.1; 10.1.5) Minors – Minors as Entertainers (Policies - 10.2.1) Entertainment – General Conditions (Policies - 11.1.2; 11.1.4) Entertainment – Live Stage Performances (Policy Rationale) Entertainment – Audio, Film, Video, Television (Policy Rationale; policies 11.3.1; 11.3.2) Entertainment – Patron Participation and NonParticipation Entertainment (Policies - 11.4.2) Entertainment – Games in a Licensed Establishment (Policies - 11.5.1) Licensing Process – Stage 4: Building Assessment and Issue of a Licence Business Ownership and Changes to a Licence – Relocation of a Licensed Establishment (Policy Rationale; Policies - 4.4.3) Premises – Posting of a Licence and Access to Approved Plans Premises – Structural Alterations (Policy Rationale; Policy - 6.2.2; 6.2.3) Premises – Capacity (Policies - 6.3.3) Entertainment – Patron Participation and NonINDEX Page 36 Liquor Licensing Policy Manual Participation Entertainment (Policies - 11.4.4) Terms & Phrases Police Section # Section Name 3.1 Licensing Process – Stage 1: Application for a New Licence (Policies - 3.1.5) Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Policies - 3.4.13) Business Ownership and Changes to a Licence – Change Approval Authority (Policies - 4.1.5) Hours of Operation – Hours of Sale (Policies - 5.1.2) Premises – Posting of Licence and Access to Approved Plans Liquor Service and Sales – Ordering Liquor (Policy Rationale) Liquor Service and Sales – Off-Premises Sales (Policy Rationale) Management and Controls of a Licensed Establishment – General Consumption (Policy Rationale) Licensing Process – Stage 3: Site and Community Assessment (Policies - 3.3.2; 3.3.9) Premises – Posting of Licence and Access to Approved Plans Liquor Service and Sales – Pricing General Information – Licence Categories (Background) Licensing Process – Stage 1: Application for a New Licence (Policies - 3.1.1; 3.1.2) Premises – Outdoor Patios (Policy Rationale) Premises – Restaurant Operating Details and Furnishings (Policy Rationale) Liquor Service and Sales – Special Conditions (Clubs) Entertainment – Games in a Licensed Establishment (Policy Rationale) Entertainment – Gambling in a Licensed Establishment (Policy Rationale) Entertainment – Gambling in a Licensed Establishment (Policy Rationale; Policies – 11.6.4; 11.6.6) Relationships with Manufacturers – Contests (Policies 12.3.1;12.3.2) Licensee Relationships with Manufacturers –Theme Night Promotions (Policies - 12.4.3) 3.4 4.1 5.1 6.1 7.2 7.6 8.1 Population 3.3 Posting of licence 6.1 Price lists Primary operating purpose of licensed establishment 7.3 2.2 3.1 6.4 6.7 7.7 11.5 11.6 Prizes 11.6 12.3 12.4 INDEX Page 37 Liquor Licensing Policy Manual Terms & Phrases Product Samples Section # 12.1 12.2 12.3 12.5 Product Vouchers 12.1 12.2 Promotional Items/Activities 11.5 12.1 12.2 12.3 12.4 12.5 Section Name Licensee Relationships with Manufacturers – General Conditions (Policies – 12.1.1) Licensee Relationships with Manufacturers – Promotional Items (Policies – 12.2.4) Licensee Relationships with Manufacturers – Consumer Taste Trials (Policy Rationale) Licensee Relationships with Manufacturers – Manufacturer Hospitality and Educational Activities (Policy Rationale; 12.5.2) Licensee Relationships with Manufacturers – General Conditions (Policies – 12.1.1) Licensee Relationships with Manufacturers – Promotional Items (Policy Rationale; Policies – 12.2.5) Entertainment – Games in a Licensed Establishment (Policies – 11.5.4;11.5.5; 11.5.6) Licensee Relationships with Manufacturers – General Conditions (Policy Rationale;12.1.1; 12.1.3; 12.1.4) Licensee Relationships with Manufacturers – Promotional Items (Policy Rationale; Policies- 12.2.1; 12.2.2; 12.2.3; 12.2.4) Licensee Relationships with Manufacturers – Consumer Taste Trials (Policy Rationale) Licensee Relationships with Manufacturers – Theme Night Promotions (Policy Rationale; 12.4.1 – 12.4.5) Licensee Relationships with Manufacturers – Manufacturer Hospitality and Educational Activities (Policy Rationale; Policies – 12.5.1) INDEX Page 38 Liquor Licensing Policy Manual Terms & Phrases Public interest Section # 2.1 3.2 3.3 3.4 3.5 3.7 4.1 4.4 4.5 4.6 5.1 5.3 6.2 6.3 6.4 6.5 7.1 7.6 7.7 8.3 10.1 10.2 11.1 11.2 11.3 Section Name General Information – Operating Environment (Operating Principles) Licensing Process – Stage 2: Applicant Eligibility Assessment (Policies - 3.2.2) Licensing Process – Stage 3: Site and Community Assessment (Policy Rationale; Policies - 3.3.1; 3.3.6; 3.3.9; 3.3.11; 3.3.13; 3.3.14) Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Policy Rationale; Policies - 3.4.1; 3.4.6) Licensing Process – Licence Amendments (Policy Rationale; Policies - 3.5.5; 3.5.8; 3.5.10) Licensing Process – Licence Renewals (Policy Rationale; Policies - 3.7.1) Business Ownership and Changes to a Licence – Change Approval Authority (Policies - 4.1.2) Business Ownership and Changes to a Licence – Relocation of a Licensed Establishment (Policy Rationale) Business Ownership and Changes to a Licence – Valid Interest in an Establishment (Policy Rationale) Business Ownership and Changes to a Licence – Dormant Liquor Primary Licences (Policy Rationale) Hours of Operation – Hours of Sale (Policy Rationale: 5.1.2; 5.1.5; 5.1.6) Hours of Operation – Alternate Use (Policy Rationale) Premises – Structural Alterations (Policy Rationale) Premises – Capacity (Policy Rationale; Policies - 6.3.2) Premises – Outdoor Patios (Policy Rationale; Policies - 6.4.1) Premises – Adjoining Licensed and Unlicensed Areas (Policy Rationale; Policies - 6.5.1) Liquor Service and Sales – Types of Liquor Sold (Policy Rationale) Liquor Service and Sales – Off-Premises Sales (Policy Rationale) Liquor Service and Sales – Special Conditions Management and Controls of a Licensed Establishment – Management of Patron Conduct (Policy Rationale; Policies 8.3.2) Minors – General Conditions (Policy Rationale; Policies 10.1.1; 10.1.2; 10.1.3) Minors – Minors as Entertainers (Policy Rationale; Policies 10.2.2) Entertainment – General Conditions (Policy Rationale; Policies - 11.1.2) Entertainment – Live Stage Performances (Policies - 11.2.1; 11.2.3) Entertainment – Audio, Film, Video and Television Entertainment – Patron Participation and Non-Participation INDEX Page 39 Liquor Licensing Policy Manual 11.4 Terms & Phrases Public notice Section # Section Name 3.3 Licensing Process – Stage 3: Site and Community Assessment (Policies -3.3.13; 3.3.15; 3.3.16) Licensing Process – Licence Amendments (Policies – 3.5.5; 3.5.10; 3.5.11; 3.5.12) Licensing Process – Stage 3: Site and Community Assessment (Policies - 3.3.9) Licensing Process – Licence Amendments (Policies 3.5.8) Licensing Process – Stage 3: Site and Community Assessment (Policies - 3.3.16) Licensing Process – Licence Amendments (Policies 3.5.12) General Information – Operating Environment (Operating Principles) General Information – Licence Categories (Liquor Primary Licence) Premises – Capacity (Policy Rationale) Liquor Service and Sales – Types of Liquor Sold (Policy Rationale) Liquor Service and Sales – Off-Premises Sales (Policy Rationale) Liquor Service and Sales – Special Conditions (Room Service) Management and Controls of a Licensed Establishment – Management of Patron Conduct (Policy Rationale) Entertainment – Introduction Entertainment – General Conditions (Policies - 11.1.3) Entertainment – Patron Participation and NonParticipation Entertainment (Policy Rationale) Entertainment – Gambling In a Licensed Establishment (Policy Rationale; Policy – 11.6) Licensee Relationships with Manufacturers – Licensee Advertising and Signs (Policy Rationale) Advertising and Signage – General Conditions (Policy Rationale) 3.5 Public opinion 3.3 3.5 Public response radius 3.3 3.5 Public safety Entertainment (Policies - 11.4.2) Entertainment – Games in a Licensed Establishment 2.1 2.2 6.3 7.1 7.6 7.7 8.3 11.0 11.1 11.4 11.6 12.4 13.1 R Re-application Reasonable measures 3.6 8.3 Receivership 4.2 Redlined area 3.4 Referendum 3.3 Licensing Process – Re-Application Management and Control of a Licensed Establishment – Management of Patron Conduct (Policy Rationale; Policies - 8.3.2) Business Ownership and Changes to a Licence – Legal Name/ Internal Ownership Changes (Policies - 4.2.8) Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Policies - 3.4.4) Licensing Process – Stage 3: Site and Community INDEX Page 40 Liquor Licensing Policy Manual Assessment (Policies - 3.3.11; 3.3.12) Terms & Phrases Section # Section Name Relocation 2.2 4.4 General Info – Operating Environment (LRS Licence) Business Ownership and Changes to a Licence – Relocation of a Licensed Establishment Renovations 4.0 Resident(s) 6.3 3.2 Business Ownership and Changes to a Licence – Introduction Premises – Structural Alterations (Policy Rationale) Licensing Process – Stage 2: Applicant Eligibility Assessment (Policy Rationale; Policies - 3.2.1; 3.2.3) Licensing Process-Stage 3: Site and Community Assessment (Liquor Primary Only) (Policies – 3.3.11; 3.3.12; 3.3.13; 3.3.16) Licensing Process – licensing Amendments (Policy Rationale – Policies 3.5.3; 3.5.10; 3.5.12) Licensing Process – Stage 2: Applicant Eligibility Assessment (Policy Rationale; Policies - 3.2.9) Licensing Process – Stage 3: Site and Community Assessment (Policies -; 3.3.10; 3.3.13; 3.3.14) Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Policies 3.4.6) Licensing Process – Licence Amendments (Policies 3.5.3; 3.5.6; 3.5.7; 3.5.8; 3.5.9; 3.5.10) Business Ownership and Changes to a Licence – Relocation of a Licensed Establishment (Policy Rationale; Policies - 4.4.3) Premises – Structural Alterations (Policies - 6.3.4) Liquor Service and Sales – Off-Premises Sales (Policy Rationale; Policies - 7.6.2) Liquor Service and Sales – Special Conditions (Motor Vessels; Policies - 7.7.3) Entertainment – Patron Participation and NonParticipation Entertainment (Policies - 11.4.2; 11.4.4) Licensing Process – Stage 2: Applicant Eligibility Assessment (Policy Rationale; Policies - 3.2.2) Licensing Process – Licence Renewals (Policies - 3.7.1) Liquor Service and Sales – Special Conditions (Policies 7.7.2) Management and Control of a Licensed Establishment – Management of Patron Conduct (Policy Rationale) Management and Control of a Licensed Establishment – Serving It Right Program (Policy Rationale) Entertainment – Patron Participation and NonParticipation Entertainment (Policies - 11.4.5) Licensee Relationships with Manufacturers – Consumer 3.3 3.5 Resident manager 3.2 Resolution from local government or First Nation 3.3 3.4 3.5 4.4 6.3 7.6 7.7 11.4 Responsible beverage service 3.2 3.7 7.7 8.3 8.4 11.4 12.3 INDEX Page 41 Liquor Licensing Policy Manual Taste Trials (Policies - 12.3.6) INDEX Page 42 Liquor Licensing Policy Manual Terms & Phrases Restaurant lounge Room service Section # 7.7 8.1 Section Name See Lounge Endorsement Liquor Service and Sales – Special Conditions (Room Service; Mini-Bars; Policies - 7.7.4) Management and Control of a Licensed Establishment – General Conditions (Policy Rationale; Policies - 8.1.5) S Sacramental Wine Sale of a licensed establishment 7.8 4.3 4.5 Seasonally-operated establishment Serving It Right Share transfer 4.6. 4.2 4.3 Shareholders 4.2 4.3 7.7 Sign approval 3.1 Signs 3.1 3.3 3.5 11.1 11.3 12.2 13.1 Sacramental Wine (Policy Rationale; Policies 7.8.1 Business Ownership and Changes to a Licence – Change in Ownership or Sale of a Licensed Establishment (Policy Rationale; Policies - 4.3.1) Business Ownership and Changes to a Licence – Valid Interest in an Establishment (Policy Rationale) Business Ownership and Changes to a Licence – Dormant Liquor Primary Licences (Policies - 4.6.1) See Responsible Beverage Service Business Ownership and Changes to a Licence – Legal Name/ Internal Ownership Changes (Policy Rationale; Policies - 4.2.5) Business Ownership and Changes to a Licence – Change in Ownership or Sale of a Licensed Establishment (Policy Rationale; Policies – 4.3.1; 4.3.4; 4.3.6; 4.3.7) Business Ownership and Changes to a Licence – Legal Name/ Internal Ownership Changes (Policy Rationale) Business Ownership and Changes to a Licence – Change in Ownership or Sale of a Licensed Establishment (Policy Rationale; Policies - 4.3.3; 5.3.6; 4.3.7) Liquor Service and Sales – Special Conditions (Brew Pubs – Tied House Exemption) Licensing Process – Stage 1: Application for a New Licence (Policies - 3.1.9) Licensing Process – Stage 1: Application for a New Licence (Policies - 3.1.9) Licensing Process – Stage 3: Site and Community Assessment (Policies - 3.3.15) Licensing Process – Licence Amendments (Policies 3.5.11) Entertainment – General Conditions (Policy Rationale; Policies - 11.1.7) Entertainment – Audio, Film, Video and Television (Policies - 11.3.2) Licensee Relationships with Manufacturers – Promotional Items (Policies - 12.2.2) Advertising and Signage – General Conditions (Policy Rationale; Policies- 13.1.1; 13.1.3; 13.1.4; 13.1.5; 13.1.6) INDEX Page 43 Liquor Licensing Policy Manual Terms & Phrases Site and community assessment Section # Section Name 3.3 Licensing Process – Stage 3: Site and Community Assessment (Policy Rationale; Policies - 3.3.1; 3.3.11; 3.3;13; 3.3.17; 3.3.18; 3.3.19) Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Policies - 3.4.8) Licensing Process – Licence Amendments (Policy Rationale) Licensing Process – Licence Renewals (Policies - 3.7.2) Business Ownership and Changes to a Licence – Relocation of a Licensed Establishment (Policy Rationale; Policies - 4.4.3) Hours of Operation – Introduction 3.4 3.5 3.7 4.4 5.0 Ski hills -see Downhill ski resort areas Snacks 2.2 7.7 9.1 Social Services tax 3.4 Socio-economic information 7.3 3.3 Special event area – See Winery lounge and special event area endorsements Special occasion licence Sponsorship 5.2 8.4 12.5 General Information – Licence Categories (Licensee Retail Store Licence) Liquor Service and Sales – Special Conditions (MiniBars; Policies - 7.7.2) Food Service – General Conditions (Policy Rationale; Policies - 9.1.2; 9.1.6) Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Policies - 3.4.12) Liquor Service and Sales – Pricing (Policies - 7.3.3) Licensing Process – Stage 3: Site and Community Assessment (Liquor Primary Only) (Policies - 3.3.2) Hours of Operation – Special Events Management and Control of a Licensed Establishment – Serving It Right Program (Policies - 8.4.3) Licensee Relationships with Manufacturers – Manufacturer Hospitality and Educational Activities (Policy Rationale; Policies – 12.5.5) INDEX Page 44 Liquor Licensing Policy Manual Terms & Phrases Stadium Section # Section Name 3.4 Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Plans Approval Guidelines for Liquor Primary Licensing of Stadiums) Business Ownership and Changes to a Licence – Valid Interest in an Establishment (Policy Rationale) Liquor Service and Sales – Types of Liquor Sold (Policy Rationale; Policies - 7.1.2) Liquor Service and Sales – Special Conditions (Stadiums; Stadiums and Concert Halls – Tied House Exemptions; Policies - 7.7.6; 7.7.7) Minors – General Conditions (Policy Rationale; Policies 10.1.3; 10.1.8; 10.1.9) Licensee Relationships with Manufacturers –General Conditions (Policies-12.1.2; 12.1.3) Licensee Relationships with Manufacturers – Manufacturer Hospitality and Educational Activities (Policies - 12.5.5) Advertising and Signage – General Conditions (Policies – 13.1.1) Hours of Operation – Special Events (Policy Rationale; Policies - 5.2.2) Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Policies - 3.4.4; Plans Approval Guidelines for Liquor Primary Licensing; Plans Approval Guidelines for Food Primary Licensing) Business Ownership and Changes to a Licence – Valid Interest in an Establishment (Policies - 4.5.4) Premises – Structural Alterations (Policies - 6.2.1) Premises – Restaurant Operating Details and Furnishings (Policy Rationale; Policies - 6.7.2) Management and Control of a Licensed Establishment General Consumption (Policy 8.1.4) Entertainment – General Conditions (Policy Rationale; Policies - 11.1.3; 11.1.7) Entertainment – Live Stage Performances Entertainment – Audio, Film, Video and Television (Policy Rationale) Entertainment – Patron Participation and NonParticipation Entertainment (Policy Rationale; Policies 11.4.1;11.4.3) Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Policies - 3.4.4) Business Ownership and Changes to a Licence – Change Approval Authority (Policies - 4.1.3) Licensing Process – Stage 1: Application for a New 4.5 7.1 7.7 10.1 12.1 12.5 13.1 Staff parties 5.2 Stage - entertainment 3.4 4.5 6.2 6.7 8.1 11.1 11.2 11.3 11.4 Stairwells, licensing of 3.4 Statute barred 4.1 Statutory declaration 3.1 INDEX Page 45 Liquor Licensing Policy Manual Strippers Terms & Phrases Structural alterations 11.2 Licence (Policies - 3.1.5) DELETED – October, 2008 Section # 4.4 6.2 11.4 Section Name Business Ownership and Changes to a Licence – Relocation of a Licensed Establishment (Policies - 4.4.4) Premises – Structural Alterations Entertainment – Patron Participation and NonParticipation Entertainment (Policy Rationale; Policies 11.4.2) T Table 2.2 6.7 7.4 11.1 11.2 11.5 12.4 12.5 Take-out window 7.7 10.1 Taste trial – See Consumer taste trial Television 11.1 11.3 11.4 Temporary change in hours of sale 5 5.1 Temporary permission to use a licence 4.3 Test kitchens in licensee retail 12.3 General Information – Licence Categories (Food Primary Licence) Premises – Restaurant Operating Details and Furnishings (Policy Rationale; Policies - 6.7.1) Liquor Service and Sales – Dispensers and Drink Sizes (Policies - 7.4.1) Entertainment – General Conditions (Policy Rationale; Policies - 11.1.5) Entertainment – Live Stage Performances (Policies – 11.2.3; 11.2.4) Entertainment – Games in a Licensed Establishment (Policy Rationale) Licensee Relationships with Manufacturers – Theme Night Promotions (Policies - 12.4.2) Licensee Relationships with Manufacturers— Manufacturer Hospitality and Educational Activities (Policy Rationale; Policies- 12.5.1) Liquor Service and Sales – Special Conditions (Golf Course Kiosks, Take-Out Windows, and Beverage Carts; Policies - 7.7.2) Minors – General Conditions (Policy Rationale; Policies 10.1.3) Entertainment – General Conditions (Policy Rationale; Policies - 11.1.3) Entertainment – Audio, Film, Video and Television Entertainment – Patron Participation and NonParticipation Entertainment (Policy Rationale) Temporary change as a temporary suspension or delicensing (Explanation of terms) Hours of Operation – Hours of Sale (Policies - 5.1.5) Business Ownership and Changes to a Licence – Change in Ownership or Sale of a Licensed Establishment (Policies - 4.3.9) Licensee Relationships with Manufacturers – Consumer INDEX Page 46 Liquor Licensing Policy Manual stores Taste Trials (Policies - 12.3.2) INDEX Page 47 Liquor Licensing Policy Manual Terms & Phrases Theme night promotions Section # Section Name 7.3 Liquor Service and Sales – Pricing (Policy Rationale; Policies - 7.3.5) Licensee Relationships with Manufacturers – General Conditions (Policies - 12.1.2; 12.1.3) Licensee Relationships with Manufacturers – Theme Night Promotions (Policy Rationale; Policies- 12.4.2; 12.4.3; 12.4.4; 12.4.5) Licensee Relationships with Manufacturers – Manufacturer Hospitality and Educational Activities (Policies – 12.5.1) Licensing Process – Stage 2: Applicant Eligibility General Information – Operating Environment (Operating Principles) Business Ownership and Changes to a Licence – Valid Interest in an Establishment (Policy Rationale; Policies 4.5.5) Entertainment – Gambling in a Licensed Establishment (Policy Rationale; Policy - 11.6.2) Licensing Process – Stage 2: Applicant Eligibility Assessment (Policy Rationale; Policies - 3.2.5) Liquor Service and Sales – Special Conditions (Stadiums and Concert Halls – Tied House Exemption; Brew Pub – Tied House Exemption; Policies - 7.7.7; 7.7.8) Licensee Relationships with Manufacturers –General Conditions (Policy Rationale; Policies- 12.1.2) Relationships with Manufacturers –Manufacturer Hospitality and Educational Activities (Policy Rationale; Policies- 12.5.5) 12.1 12.4 12.5 Third party operator Third party use of a licence 3.2 2.1 4.5 Ticket raffles 11.6 Tied house 3.2 7.7 12.1 12.5 Tour Area – See Picnic and Tour areas Tournaments 11.5 12.1 12.5 13.1 Traffic near establishment 3.3 Trains 6.2 6.3 10.1 Entertainment – Games in a Licensed Establishment (Policy Rationale; Policies – 11.5.6) Licensee Relationships with Manufacturers – General Conditions (Policy Rationale; Policies- 12.1.3) Licensee Relationships with Manufacturers – Manufacturer Hospitality and Educational Activities (Policy Rationale; Policies- 12.5.5) Advertising and Signage – General Conditions (Policies 13.1.1) Licensing Process – Stage 3: Site and Community Assessment (Liquor Primary Only) (Policies - 3.3.2) Premises – Structural Alterations (Policy Rationale) Premises – Capacity (Policy Rationale) Minors – General Conditions (Policy Rationale; Policies 10.1.3; 10.1.8) INDEX Page 48 Liquor Licensing Policy Manual Terms & Phrases Travel Section # 12.1 12.5 Section Name Licensee Relationships with Manufacturers –General Conditions (Policy Rationale; Policies- 12.1.3) Licensee Relationships with Manufacturers – Manufacturer Hospitality and Educational Activities (Policy Rationale; Policies- 12.5.3; 12.5.4) U UBrew/UVin 2.2 3.2 12.1 Unlicensed events 5.3 10.1 General Information – Licence Categories (Background; UBrew/UVin Licence) Licensing Process – Stage 2: Applicant Eligibility Assessment (Policy Rationale; Policies - 3.21; 3.2.5) Relationships with Manufacturers –General Conditions (Policies- 12.1.2) Hours of Operation – Alternate Use Minors – General Conditions (Policies - 10.1.1) V Valid interest 3.2 4.4 4.5 Veterans’ club Video games arcade 2.2 3.1 11.1 11.5 Views of residents 3.3 3.5 Licensing Process – Stage 2: Applicant Eligibility Assessment (Policy Rationale; Policies - 3.2.1; 3.2.4) Business Ownership and Changes to a Licence – Relocation of a Licensed Establishment (Policies - 4.4.3) Business Ownership and Changes to a Licence – Valid Interest in a Licensed Establishment See Liquor Primary Club General Information – Licence Categories (Liquor Primary Licence) Licensing Process – Stage 1: Application for a New Licence (Policy Rationale; Policies - 3.1.1) Entertainment – General Conditions (Policy Rationale; Policies - 11.1.2) Entertainment – Gambling in a Licensed Establishment (Policies - 11.5.3) Licensing Process – Stage 3: Site and Community Assessment (Policies - 3.3.11; 3.3.12; 3.3.13; 3.3.16) Licensing Process – Licence Amendments (Policy Rationale; Policies -3.5.3; 3.5.10; 3.5.12) Vouchers – See Product vouchers W Washrooms 6.5 8.1 Weapons 8.3 Premises – Adjoining Licensed and Unlicensed Areas (Policy Rationale; Policies - 6.5.2) Management and Controls of a Licensed Establishment – General Conditions (Policy Rationale; Policies - 8.1.3) Management and Controls of a Licensed Establishment – Management of Patron Conduct (Policy Rationale; Policies - 8.3.1) INDEX Page 49 Liquor Licensing Policy Manual INDEX Page 50 Liquor Licensing Policy Manual Terms & Phrases Wine Section # Section Name 2.2 General Information – Licence Categories (Licensee Retail Licence; U-Brew/U-Vin Licence; Manufacturer Licence) Hours of Operation – Hours of Sale (Hours of Sale by Licence and Establishment Type) Liquor Service and Sales – Type of Liquor Sold (Policy Rationale; Policies - 7.1.2) Liquor Service and Sales – Pricing (Policy Rationale) Liquor Service and Sales – Dispensers and Drink Sizes (Policy Rationale; Policies - 7.4.2) Liquor Service and Sales – Off-Premises Sales (Policies 7.6.4) Liquor Service and Sales – Special Conditions (Stadiums and Concert Halls – Tied House Exemption) Management and Controls of a Licensed Establishment – General Conditions (Policy Rationale; Policies - 8.1.2; 8.1.6; 8.1.8) Licensee Relationships with Manufacturers – Promotional Items(Policies – 12.2.5 ) Licensee Relationships with Manufacturers –Consumer Taste Trials (Policies - 12.3.2; 12.3.5; 12.3.6) Licensee Relationships with Manufacturers –Theme Night Promotions (Policies- 12.4.5) Hours of Operation – Hours of Sale (Hours of Sale by Licence and Establishment Type) Management and Controls of a Licensed Establishment – General Conditions (Policies - 8.1.6) 5.1 7.1 7.3 7.4 7.6 7.7 8.1 12.2 12.3 12.4 Wine, removal of unfinished bottle 5.1 8.1 INDEX Page 51 Liquor Licensing Policy Manual Terms & Phrases Winery lounge and special event area endorsements Section # Section Name 1.0 Introduction – Introduction (Purpose and Format of This Manual) General Information – Licence Categories (Manufacturer Licence) Licensing Process – Stage 3: Site and Community Assessment (Policy Rationale; Policies 3.3.1; 3.3.3; 3.3.9) Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Plans Approval Guidelines for Winery Lounge or Special Event, Picnicking or Tour Area Endorsement) Licensing Process – Licence Amendments (Policy Rationale; Policies – 3.5.1; 3.5.3) Business Ownership and Changes to a Licence – Relocation of a Licensed Establishment (Policies - 4.4.3) Business Ownership and Changes to a Licence – Valid Interest in a Licensed Establishment (Policies - 4.5.5) Hours of Operation – Hours of Sale (Hours of Sale by Licence and Establishment Type; Policy Rationale; Policies – 5.1.3; 5.1.7) Premises – Capacity (Policy Rationale; Policies – 6.3.1; 6.3.3; 6.3.4) Premises – Outdoor Patios (Policies - 6.4.1; 6.4.3) Premises – Adjoining Licensed and Unlicensed Areas (Policy Rationale) Liquor Service and Sales – Type of Liquor Sold (Policy Rationale) Liquor Service and Sales – Pricing (Policies - 7.3.6) Management and Controls of a Licensed Establishment – General Conditions (Policy Rationale; Policies - 8.1.3; 8.1.8) Food Service – General Conditions (Policy Rationale; Policies – 9.1.2; 9.1.4; 9.1.5) Minors – General Conditions (Policy Rationale; Policies 10.1.1; 10.1.6) Minors – Minors as Entertainers (Policies - 10.2.1; 10.2.2) Entertainment – General Conditions (Policies - 11.1.2; 11.1.4) Entertainment – Live Stage Performances (Policy Rationale) Entertainment – Audio, Film, Video and Television (Policy Rationale; Policies – 11.3.1; 11.3.2) Entertainment – Patron Participation and Non-Participation Entertainment (Policy Rationale; Policies - 11.4.2) Entertainment – Games in Licensed Establishment (Policy Rationale; Policies - 11.5.1; 11.5.5; 11.5.6) Entertainment – Gambling in Licensed Establishment (Policies - 11.6.4) 2.2 3.3 3.4 3.5 4.4 4.5 5.1 6.3 6.4 6.5 7.1 7.3 8.1 9.1 10.1 10.2 11.1 11.2 11.3 11.4 11.5 11.6 INDEX Page 52 Liquor Licensing Policy Manual INDEX Page 53 Liquor Licensing Policy Manual Terms & Phrases Section # Section Name 3.2 Licensing Process – Stage 2: Applicant Eligibility Assessment (Policy Rationale; Policies - 3.2.2) Licensing Process – Stage 4: Building Assessment and Issue of a Licence (Policy Rationale; Policies - 3.4.1) Premises – Outdoor Patios (Policy Rationale) Entertainment – General Conditions (Policy Rationale) Z Zoning 3.4 6.4 11.1 INDEX Page 54
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