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Brewer, Distiller and Agent Licences TERMS and CONDITIONS A GUIDE FOR LIQUOR LICENSEES IN BRITISH COLUMBIA March 2008
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Brewer, Distiller and Agent Licences · 2 Brewer, Distiller and Agent Licences Terms and Conditions “Manufacturer” or "Liquor Manufacturer"means a manufacturer of liquor products

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Page 1: Brewer, Distiller and Agent Licences · 2 Brewer, Distiller and Agent Licences Terms and Conditions “Manufacturer” or "Liquor Manufacturer"means a manufacturer of liquor products

Brewer, Distiller and Agent Licences

TERMS and CONDITIONS

A GUIDE FORLIQUOR LICENSEES

IN BRITISH COLUMBIA

March 2008

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This guide . . . provides essential information for licensed breweries anddistilleries (including cottage breweries and brew pubs) and foragents hired to promote brewery/distillery products. Thisinformation does not apply to all licence classes.

Separate guides are available for those holding winery licences(and their agents), and for those with food-primary, liquor-primary, UBrew/UVin, and licensee retail store licences.

For copies of these other guides, please contact us or visit theprovincial government website below:Phone (toll free): 1 866 209 2111E-mail: [email protected] site: www.gov.bc.ca/pssg (under “Liquor Licensing”)

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Brewer, Distiller and Agent LicencesTerms and Conditions

A GUIDE FOR LIQUOR LICENSEESIN BRITISH COLUMBIA

TABLE OF CONTENTS

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1This Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1Definitions Used in This Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1Updates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2Help is Available . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

Background: Who is Responsible for What . . . . . . . . . . . . . . . . . . . . . . . . . . .3The Liquor Control and Licensing Branch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3Your Role as a Licensee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3The Role of the Liquor Inspector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3The Role of Police . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4The Role of Local Government and First Nations . . . . . . . . . . . . . . . . . . . . . . . . . .4

The Nature of Your Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5Brewery/Distillery Licence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5Agent’s Licence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5Minors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5Donations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

Managing Your Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6Posting Your Licence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6Storing Your Floor Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6Renewing Your Licence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6Providing Information to the Branch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6Making Changes to Your Liquor Licence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6Selling Your Business and Transferring Your Licence to a New Owner . . . . . . . . . . .6Serving It Right: B.C.’s Responsible Beverage Service Program . . . . . . . . . . . . . . .7

Advertising Your Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8What You May Advertise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8Where You May Advertise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8Signs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8Joint Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9Complaints About Advertisements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

Sponsoring Events and Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10Where Sponsorships Are Permitted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

Conducting Market Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11General Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11Surveys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11Taste Tests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

Promoting Your Products With Other Licensees . . . . . . . . . . . . . . . . . . . . . .12What You May and May Not Do . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12Activities Not Permitted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12Activities Permitted At Any Time, Without a Buy-Sell Agreement . . . . . . . . . . . . .13

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Promotional items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13Value-added promotional items approved for government liquor stores . . . . . . .13Product vouchers for licensee retail stores . . . . . . . . . . . . . . . . . . . . . . . . . .13Product samples for licensed establishments . . . . . . . . . . . . . . . . . . . . . . . . .14Consumer tastings at a restaurant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14Consumer tastings at a licensee retail store . . . . . . . . . . . . . . . . . . . . . . . . .15Visits to licensed establishments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15Hospitality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16Contests (running in government liquor stores) . . . . . . . . . . . . . . . . . . . . . . .16Contests (through the media) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16

Activities Permitted With a Buy-Sell Agreement Only . . . . . . . . . . . . . . . . . . . . .16More expensive promotional materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16Value-added promotional materials for licensee retail stores (that you are

not also supplying to government liquor stores) . . . . . . . . . . . . . . . . . . . .16Theme nights at a bar or pub . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17Joint promotions/brewmaster’s dinners . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18Contests (that are not running in government liquor stores) . . . . . . . . . . . . . .18Sponsorships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18Educational Events and Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18Hospitality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18Promoting Your Products With Other Licensees: A summary . . . . . . . . . . . . . .19

Inspections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20Why We Inspect Breweries and Distilleries . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20Entry of Liquor Inspectors and Police Officers . . . . . . . . . . . . . . . . . . . . . . . . . . .20Keeping and Producing Documents and Records . . . . . . . . . . . . . . . . . . . . . . . . .20

Enforcement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21Contravention Notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21Compliance Meeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21Notice of Enforcement Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21Waiver . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21Pre-Hearing Conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21Enforcement Hearing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22Possible Enforcement Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22Judicial Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22

APPENDIX 1: Penalty Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23APPENDIX 2: Making Changes to Your Liquor Licence . . . . . . . . . . . . . . . . . .30

Changes that Require Approval from the General Manager . . . . . . . . . . . . . . . . .30Permanent change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30Structural change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30Transfer of location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30Third-party or resident manager change . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30Temporary change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30

Application Forms, Documentation and Other Required Approvals . . . . . . . . . . . . .31Criminal record checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31

APPENDIX 3: CRTC Code for Broadcast Advertising of Alcoholic Beverages . . .32APPENDIX 4: Sample Buy-Sell Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . .33

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Brewer, Distiller and Agent Licences 1Terms and Conditions

IntroductionThis GuideThis guide outlines the requirements of theLiquor Control and Licensing Act and Regulationsfor liquor manufacturers and agents (excludingwineries). It also imposes further terms andconditions, in addition to those found in theLiquor Control and Licensing Act andRegulations.*

Like the requirements contained in the Act andRegulations, theseadditional terms andconditions – and anyfurther terms andconditions that mightbe printed on the faceof your licence orcontained in lettersissued to you by thegeneral manager of theLiquor Control andLicensing Branch – must be followed at all times.

As a licensee, it is your responsibility to operateyour business so that it complies with the law andwith the terms and conditions of your licence.

*Section 12 of the Liquor Control andLicensing Act provides the general managerwith the authority to impose, in the publicinterest, terms and conditions on licences.

Important!Please take time to read thisguide carefully and make sureyour managers and staff arefamiliar with the informationpresented here, and with anyadditional terms andconditions printed on theface of your licence and/or inletters issued by the LiquorControl and LicensingBranch.

Definitions Used in this Guide“The Act” means the Liquor Control and

Licensing Act, the provincial legislation thatguides the licensing of establishments thatmanufacture, store or sell liquor in B.C.

“Agent” or “Licensed Agent” means a liquormanufacturer who markets and sells his orher products off-site, an agent hired by aliquor manufacturer to market and sell themanufacturer's products off-site, andindependent agents who promote and sellimported and/or domestic products from avariety of liquor manufacturers.

“The branch” means the Liquor Control andLisensing Branch, the government agency thatadministers the Act.

“Buy-sell agreement” is a contract between aliquor manufacturer/agent and a bar, pub,restaurant or licensee retail store to promotethe manufacturer/agent's products. A buy-sell agreement spells out what the licenseeshave agreed to and for how long thatagreement is to remain in place (it may notexceed 36 months).

“Food-primary” refers to a licensed establishmentwhere the service of food, as opposed toliquor, is the primary focus of the business.

“The general manager” means the generalmanager of the Liquor Control and LicensingBranch.

“Licensee” refers to any individual, individuals orcorporate body that holds a British Columbialiquor licence. The term covers both thelicensee of record and any person acting inthe place of the licensee, such as a manageror person in charge of a brewery or distilleryin the licensee's absence, and staff working inthe establishment.

“Liquor-primary” refers to a licensedestablishment where the service of liquor, asopposed to food, is the primary focus of thebusiness.

Please note:Wherever definitions, words orexpressions used in this guide differfrom the wording of the Liquor Controland Licensing Act and Regulations, thelegislation will prevail.

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2 Brewer, Distiller and Agent LicencesTerms and Conditions

“Manufacturer” or "Liquor Manufacturer" meansa manufacturer of liquor products – wine,spirits, liqueurs, cider, coolers and beer(including beer made at cottage breweriesand brew pubs) – or the corporate official ofa liquor manufacturer.

“Minor" refers to an individual who is under 19years of age — 19 is the legal drinking age inBritish Columbia.

“Product voucher” or "Voucher" is a certificateissued by a manufacturer. A customer maytake the voucher to a participating licenseeretail store and exchange it, at no charge, forthe quantity of liquor (a bottle of wine or adozen cases of beer, for example) specifiedon the voucher.

“Serving It Right: The Responsible BeverageService Program" is a self-study course thateducates licensees, managers and serversabout their legal responsibilities when servingliquor, and provides effective techniques toprevent problems related to over-service.

“Terms and conditions of licence” arerequirements of licensees that are set bylegislation, regulation or branch policy. Alllicence terms and conditions must befollowed. Not following them may result inenforcement action.

UpdatesLicence terms and conditions change from timeto time. We will send out revisions to this guideperiodically. In addition, an up-to-date copy isalways available on the provincial governmentwebsite under “Liquor Licensing”:

www.gov.bc.ca/pssg

Help is availableWe understand the challenges you may face as aliquor manufacturer or agent in consistentlyfollowing B.C.'s liquor laws. You should alwaysfeel free to discuss potential enforcementproblems with a liquor inspector or anotherbranch employee.

If you have any concerns or questions, pleasewrite, telephone or email the Liquor Control andLicensing Branch at:

Mailing addressPO Box 9292 Stn Prov Govt,

Victoria, BC V8W 9J8

Office address2nd Floor, 1019 Wharf St.,

Victoria, BC V8W 2Y9

[email protected]

Phone250 387-1254 in Victoria

Toll free Phone1-866-209-2111

A range of helpful information along with licenseeguides, application forms and links to the LiquorControl and Licensing Act and Regulations can be

found on the provincial government websiteunder “Liquor Licensing”:

www.gov.bc.ca/pssg

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Brewer, Distiller and Agent Licences 3Terms and Conditions

Background: Who isResponsible for WhatThe Liquor Control andLicensing BranchThe Liquor Control and Licensing Branch isresponsible for regulating and monitoring the saleof liquor in licensed establishments in BritishColumbia, and for protecting the public from theharm that may be caused by making and sellingliquor or products that contain alcohol.

The branch issues and supervises liquor licences,and monitors the activities of all liquor licenseesin British Columbia to make sure they arefollowing the rules laid out in the Liquor Controland Licensing Act, its Regulations, and theirlicence terms and conditions.

To make sure the public has full access toinformation about liquor licensees in thisprovince, we post summaries of all cases wherethe branch has recommended enforcement actionon our branch web site. For those cases that goto an enforcement hearing, we post the completetext of the decision. (Names of individuals areremoved to comply with the requirements of theFreedom of Information and Protection of PrivacyAct.)

Your Role as a LicenseeAs a licensee (someone who holds a liquorlicence), you are legally responsible forunderstanding how the Act, its Regulations, andthe specific terms and conditions of your licenceaffect the operation of your establishment orbusiness, and for complying with the Act, itsRegulations, and the terms and conditions of yourlicence.

The term "licensee" covers both the licensee ofrecord and any person acting in the place of thelicensee, such as a manager or person in chargeof a brewery or distillery in the licensee'sabsence, as well as any staff working on-site atthe brewery or distillery, or off-site at a theme

night, sponsorship event or other promotion. Youare therefore responsible for making sure all youremployees (including agents and their staff) followB.C.'s liquor laws and the terms and conditions ofyour licence, both on- and off-site.

In addition, you must let the branch know aboutany changes you make to your business (includingchanges to hired agents or business partners).You must cooperate with liquor inspectors andpolice, and ensure that the actions of you andyour staff do not put liquor inspectors or policeat risk or prevent them from carrying out theirduties.

If you do not carry out your legalresponsibilities, you could face seriouspenalties, including the suspension or lossof your licence.

The Role of the LiquorInspectorLiquor Control and Licensing Branch liquorinspectors are located in regional offices acrossthe province. They maymake unannouncedvisits to your place ofbusiness at any time to:• explain the terms

and conditions ofyour licence

• inspect the physicallayout of yourmanufacturing facility – including the retailsales area, sampling room and equipmentroom – or warehouse

• inspect your legal, financial and businessrecords

• observe and record your business practices,identifying gaps or weaknesses that are likelyto lead to non-compliance (to you notfollowing the Act, its Regulations and theterms and conditions of your licence), and

Please note:Liquor inspectors are agood resource. They canprovide you with bothhelp and advice, and werecommend you get toknow your local liquorinspector as soon aspossible.

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4 Brewer, Distiller and Agent LicencesTerms and Conditions

• identify any contraventions of the Act, itsRegulations or the terms and conditions ofthe licence occurring in your establishment.

If a liquor inspector finds you are contravening(not following) the Act, its Regulations or theterms and conditions of your licence, theinspector will issue a Contravention Notice andmay recommend that the general manager takeenforcement action against you.

The Role of PolicePolice officers may also make unannounced visitsto your place of business.

On these visits, they will look for evidence of anyliquor contraventions, especially those that couldresult in disturbances within the community orthat could threaten public safety, such as minorsin possession of alcohol or illicit liquor. If thepolice notice a contravention, they will record iton a form called a Licensed Premises Check(LPC), leave one copy with you and send one tothe Liquor Control and Licensing Branch.

The branch follows up on all LPCs, and may ask aliquor inspector to conduct a further inspection.If the inspector confirms the contravention, he orshe will issue a Contravention Notice and mayrecommend enforcement action.

The Role of LocalGovernment and First NationsA liquor licence is only one requirement inopening a licensed brewery or distillery, oroperating as an agent, in British Columbia. Liquorlicensees must also deal with local governmentson such issues as zoning, building bylaws, businesslicensing requirements and health and fireregulations. (See the blue pages of yourtelephone directory for local government, healthand fire authorities.)

Local governments are responsible for protectingthe peace and good order of their communitiesand are often the first to learn about problemsrelating to liquor licensees. The general managertakes very seriously any complaints from localgovernments that licensees are operating contraryto the public interest and are disturbing people inthe surrounding area.

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Brewer, Distiller and Agent Licences 5Terms and Conditions

The Nature of Your BusinessBrewery/Distillery LicenceIf you are making beer, spirits or coolers in B.C. youmust have a brewery/distillery licence from theLiquor Control and Licensing Branch (and a federalbrewery/distillery licence from the Canada RevenueAgency – Excise Duty Pacific Region). The LiquorControl and Licensing Act allows a person to makebeer for his or her own consumption, or forconsumption by others at no charge, without alicence.

With a manufacturer's licence, you may sell yourbeer, spirits or coolers off-site to Liquor DistributionBranch (LDB) stores and any other retail storesdesignated by the LDB, provided you also have anagent's licence (see below).

You may also:• set aside an area within your manufacturing

facility as a sampling room, where you serve freesamples to the public for tasting, and

• operate one on-site retail store at yourmanufacturing site, provided you have an on-siteoperating agreement with the LDB.

If your company is incorporated under the laws ofanother province or country, you must be registeredas an extra-provincial company doing business inB.C. and you must appoint a resident manager.

Agent’s LicenceThere are three kinds of licensed agents in B.C.:• liquor manufacturers who market and sell their

products off-site (an agent's licence is notrequired for liquor manufacturers who promoteand sell their products on-site only, at a retailstore or sampling room)

• agents hired by liquor manufacturers to marketand sell their products off-site, and

• independent agents who market and sellimported and/or domestic products from avariety of liquor manufacturers.

All agents must be licensed by the Liquor Controland Licensing Branch and must comply with the Act,its Regulations and the terms and conditions of theirlicence when promoting and selling liquor products.

Agents may hire employees to market and sell liquorproducts. Agents are responsible for making suretheir employees follow B.C.'s liquor laws and theterms and conditions of the agent's licence.

Agents may solicit and receive orders for liquorproducts only from licensed establishments andappointment stores. Agents and their employeesmay not sell liquor products directly to the public,or the LDB, nor may they import liquor productsdirectly. (Liquor products may only be importedthrough the LDB.)

Advertising (including on the Internet) by agentsmay only be directed to licensed establishments orappointment stores to inform them that the agentmay take orders for liquor products produced bythe manufacturers the agent represents. Agents mayalso promote and advertise their products by nameand advise the public that the products are availablefor purchase at authorized liquor outlets.

MinorsIt is against the law to sell, serve, or supply liquor toa minor. If you or an employee does so, yourlicensing privileges could be jeopardized, and yourisk prosecution.

You may not direct any promotional activities ormaterials to minors. Minors are allowed in yoursampling room or store (if you have one) only ifaccompanied by a parent or guardian. You may notemploy minors to sell or serve liquor in these areas.

Donations You may not donate your products to a non-profitorganization for use at a private event held under aSpecial Occasion Licence. However, you may givethe non-profit organization money to buy liquor foran event provided you keep a record of the:• name of the non-profit organization• location, date and purpose of the event• number of people attending the event, and• amount of money donated.

Manufacturers and agents must keep strict recordsof charitable activities.

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6 Brewer, Distiller and Agent LicencesTerms and Conditions

Posting Your Licence You must post your liquor licence certificate in aprominent location at your manufacturing facilityor your agent's office to ensure it is immediatelyavailable for review by liquor inspectors andpolice.

Storing Your Floor Plans When you first applied for a manufacturer'slicence, you submitted your establishment's floorplans for approval. Once they were approved bythe general manager, these floor plans becamepart of your liquor licence. As with the licencecertificate, liquor inspectors and the police musthave quick and easy access to your approvedfloor plans.

Renewing Your LicenceBefore we issue your licence, you must pay aprorated annual licence fee. You must also renewyour licence and pay any applicable annual licencefees by March 31st of each year. For amanufacturer's licence, the renewal amount variesby type of manufacturer and/or volume of liquorproduced. Distilleries pay $1,100 per year;breweries pay a minimum of $1,100 per year,based on $0.11 a hectolitre, multiplied by thetotal number of hectolitres of malt liquor shippedeach year.

The annual fee for an independent agent's licenceis $100 if you do not hold a winery, brewery, ordistillery licence.

Providing Information to the BranchYou must be forthright in providing informationto the branch. Making a misleading statement orfailing to disclose a material fact (such as the factthat a third party is using your brewery/distillerylicence, or that the lease on your property hasrun out) are licensing contraventions.

Making Changes to YourLiquor LicenceThe details of your liquor licence application –who you are, the name and location of yourestablishment, etc. – were critical factors in thedecision to grant you a licence.

Any changes you make after receiving yourlicence – including changes to business partners,agents, and mailing address – require theapproval of the branch before you make thechanges. (Please see Appendix 2 for detailedinformation about making changes to yourlicence.)

Selling Your Businessand Transferring YourLicence to a New OwnerTo transfer your brewery/distillery licence to anew owner, the new owner must apply totransfer the licence using the Application for aManufacturer’s Licence form (available on thewebsite listed on page 2). As the currentlicensee, you will need to sign the Agreement toTransfer Licence(s) section of that form — this iswhere you officially agree that when the generalmanager approves the transfer application youwill relinquish all claims to your licence(s). Youalso acknowledge that you will continue to beheld responsible for any contraventions that occuruntil the transfer is approved. The new ownercan request a change in the name of the business.

The general manager may decide not to approvea licence transfer if the branch is in the process oftaking enforcement action against you as thecurrent licensee, or if you have not paid amonetary penalty or served a suspension notice.

Managing Your Business

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Brewer, Distiller and Agent Licences 7Terms and Conditions

Serving It Right™:B.C.’s ResponsibleBeverage ServiceProgram

Serving It Right is a self-study course thateducates licensees, managers and servers abouttheir legal responsibilities when serving liquor,and provides effective techniques to preventproblems related to overservice.

Serving It Right must be completed by alllicensees and managers. If you are licensed as apublic or private corporation, the licensee portionof this requirement is met if any director, officeror employee responsible for controlling the saleof liquor completes the Serving It Right program.If you have a sampling room, all servers musthave Serving It Right.

You are responsible for making sure yoursampling room servers take Serving ItRight. You must keep photocopies of theirServing It Right certificates, ready forinspection by a liquor inspector or policeofficer at all times.

Serving It Right:The course packages,examsand certificate numbers maybe obtained from the program: Phone: 604-633-9798Fax: 604-633-9796E-mail:[email protected] downloaded from website:www.servingitright.com

The Serving it Right programis administered by go2 —B.C.’s tourism industry humanresources association.

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8 Brewer, Distiller and Agent LicencesTerms and Conditions

Advertising Your ProductsAll your advertising must comply with theCanadian Radio-television andTelecommunications Commission's Code forBroadcast Advertising of Alcoholic Beverages andLiquor Control and Licensing Regulations. (Pleasesee Appendix 3 for more on the broadcast code.)

What You May Advertise You may advertise your products, provided theproducts are listed with the Liquor DistributionBranch, and the LDB has approved their labelingand packaging. (The Liquor Control and LicensingBranch does not require pre-approval ofadvertising; however, the LDB may require yourads to be pre-approved before they are placed ina government liquor store or rural agency store.)

You, as a liquor manufacturer or agent, are liablefor all advertising – including merchandise – thatbears your corporate name or brand, whetherdone by you or by someone else on your behalf,and no matter where it is displayed ordistributed. You must comply with the LiquorControl and Licensing Branch Regulations and theCRTC Code.

Your ads may indicate:• your brands of beer, spirits or coolers

• the name of your brewery or distillery

• how much you charge for liquor (your liquorprices, including specials)

• your hours of sale

• where your products may be found – at aparticular bar or restaurant, for example (youmay not, however, advertise the bar orrestaurant's entertainment line-up, drinkspecials, or menu items).

Your ads may not:• encourage people to drink liquor or to drink

irresponsibly (you must take this into accountif you mention price in your advertising; ifyour price advertising encourages or resultsin patrons drinking to excess, we can preventyou from including liquor prices in futureadvertising)

• show people drinking liquor, or anyone whois either intoxicated or behaving irresponsiblyor illegally

• associate liquor with driving

• use pictures of minors (in B.C., that's anyoneunder the age of 19), or of personalities,images or activities that may appeal to minors

• be directed at minors or placed in locationsused or visited mostly by minors, such asvideo arcades, playgrounds or stadiums thatare used primarily for minor sports, such asPeeWee hockey

• depict liquor as: - one of life's necessities - key to social acceptance or personal

success - central to the enjoyment of an activity, or - a status symbol

• be shown on a theatre screen before amovie, if the movie being presented isprimarily for a young audience

• promote contests and tournaments involvingwet T-shirts, wet jockey shorts, bare-as-you-dare, or similar themes or activities.

Where You MayAdvertiseYou may advertise your products anywhere – innewspapers, magazines and periodicals, or ontelevision, radio or the Internet – provided themedium/program/site is not primarily directedat minors.

You may also print pamphlets or brochures toadvertise your business; these pamphlets orbrochures may include graphics and pictures ofyour brewery or distillery.

SignsAny signs, including signs bearing the name ofyour brewery/distillery or agent's business, areconsidered to be advertisements and mustcomply with the advertising terms and conditionsoutlined here. Your signs must also comply withlocal government bylaws.

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Brewer, Distiller and Agent Licences 9Terms and Conditions

Joint AdvertisingYou may advertise your products in conjunctionwith non-liquor manufacturers or non-liquorproducts (such as recipes, glasses or umbrellas),but the ads must comply with the advertisingterms and conditions outlined here.

Complaints AboutAdvertisementsThe Liquor Control and Licensing Branchinvestigates complaints from the public aboutadvertisements by liquor manufacturers andagents.

If we receive a complaint about one of your ads,we will ask you for a copy of the ad. You or youradvertising agency must supply the ad uponrequest.• If we discover the ad violates the CRTC's

Code for Broadcast Advertising of AlcoholicBeverages, we will either ask the agency thatapproved the ad for broadcast – such asAdvertising Standards Canada, the BroadcastClearance Agency, or a similar screeningagency – to investigate, or, if the ad was notpre-screened, we will ask you to withdrawthe ad and not use it again in future B.C. adcampaigns. We may also take enforcementaction, such as suspending your advertisingprivileges.

• If we discover the ad violates one of our ownRegulations or policies, we will issue acontravention notice. If the issue is one oflocation, we will ask you to withdraw the ad,and/or if the issue is one of content, we willask you to withdraw the ad and not use itagain in future B.C. ad campaigns. We mayalso take enforcement action, such assuspending your advertising privileges.

• If the complaint involves an issue not coveredby the broadcast code or our Regulations, wewill refer the complaint to AdvertisingStandards Canada.

• If you object to a request from us towithdraw an ad, we will schedule anenforcement hearing where you will have theopportunity to defend the ad. (Please see thechapter on Enforcement for more onenforcement hearings.)

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10 Brewer, Distiller and Agent LicencesTerms and Conditions

Where SponsorshipsAre PermittedYou may sponsor a wide range of sports andcultural events, activities and organizations. Thisincludes sporting events, such as golf tournamentsand sports teams. Licensees and their staff mayplay on the team, participate in or help out at theevent.

Sponsorships are not generally permitted in bars,pubs or restaurants. However, you may sponsorevents and activities at licensed:• sports stadiums

• recreational centres (including ski hills,racquet clubs and bowling alleys)

• concert halls

• university or cultural centres

These events must be time-limited and not partof an on-going relationship with the licensedestablishment. They must also be covered undera buy-sell agreement (please see the chapter onPromoting Your Products with Other Licensees formore on the buy-sell agreement).

RequirementsYou must notify the branch, in writing, at least 14days before any sponsored activity or event takesplace if the sponsorship is for more than $1,500or it involves a licensed establishment.

Your letter/e-mail/fax must:• describe the nature of the activity or event

and the purpose of the sponsorship

• state where and when the event or activity isto take place, and

• provide the name of the licensee, if the eventor activity is to be held in connection with alicensed establishment.

In addition:• You must keep a record of all sponsorship

events and activities, including the terms ofany agreements related to the sponsorshipthat you enter into, for at least two years.

• You may not offer liquor as a prize toparticipants in a sponsored event or activity.If liquor is being served on-site during theevent, you may not demand that yourproducts only be served.

• You may advertise the sponsored event oractivity, both on-site and off-site, and insideor outside other licensed establishments. Ifthe event is at a licensed establishment, youmay name the establishment in youradvertising. (Please see the chapter onAdvertising Your Products, for moreinformation.)

• If you put up signs identifying your breweryor distillery, or products at the event, andliquor is being served on-site, you must alsoput up signs advocating the responsible use ofalcohol at a rate of one responsible-use signfor every three brand/corporate signs. (Ifyou put up only one or two brand/corporatesigns, you must put up at least oneresponsible-use sign.) The responsible-usesigns must be as big, as visible and asprominent as your brand/corporate signs,easily seen by both on-site and off-site(television, for example) audiences.

Sponsoring Events and Activities

Important!You may not sponsor events or activities thatprimarily involve minors as either participants oraudience, or that primarily appeal to minors. Thisincludes junior or minor sports events.

You may, however, ask the branch for permission tosponsor a major national or international event wherea majority of the participants are under age 19, butwhich does not predominantly appeal to minors, suchas a national or international junior championshipevent.

And you may sponsor university or college-relatedevents or activities (either on- or off-campus),provided you have prior approval from the college oruniversity.

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Brewer, Distiller and Agent Licences 11Terms and Conditions

Conducting Market Research

General Conditions You may conduct market research yourself orappoint an independent market research agencyto conduct market research – such as surveys andtaste tests – on your behalf, provided:• All participants are of legal drinking age (an

exception may be made for a survey relatedto a non-liquor topic, such as responsible-usemessaging).

• You do not display brand or corporateadvertising at the site of the research, unlessthe piece of advertising is the subject of theresearch.

SurveysYou or an agency hired by you may surveymembers of a target group about your products,provided: • The survey is not a promotional scheme

designed to obtain direct or indirectadvertising for your products, or used toconvey potentially disparaging informationabout another company or product.

• The survey takes place in a market researchoffice, hotel, meeting room, or otherlocation closed to the general public, withone exception: if the survey is limited to aone-on-one question and answer situation, itmay be conducted by telephone, or in eithera private or public area, such as a shoppingmall or on the street.

You or the agency conducting the survey maycompensate the respondents for participating inthe survey. This may include beer or spirits givenas a gift, such as a bottle of the product featuredin the survey.

Taste TestsYou or an agency hired by you may conduct tastetests of both existing products and products notyet available in this province, provided:• You or the agency supply a staff member to

conduct the tests who has completed theServing It Right course for servers, and thatstaff member is present throughout the tastetests.

• Respondents participating in taste tests arenot permitted to consume samples to thepoint of intoxication.

• The research takes place in a market researchoffice, hotel, meeting room, or otherlocation closed to the general public.

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12 Brewer, Distiller and Agent LicencesTerms and Conditions

Promoting Your ProductsWith Other Licensees

Activities Not PermittedYou may not, at any time:

• Offer or give money, gifts, rewards orremuneration to licensees who carry yourproducts. You may not, for example, supplylicensees with additional bottles of beer orspirits at either no cost or at a reduced cost.

• Provide any items, products or services toother licensees that are necessary to theoperation of their businesses. This includesmoney, credit or other forms of financialassistance, as well as fixtures, furnishings,products, repair costs, draught lines,glassware, games, refrigerators, shelving orpermanent display structures. You also maynot rent rooms from another licensee (at ahotel or resort, for example), then leavethem unoccupied for the licensee to rentagain.

• Pay any portion of a licensee's advertisingcosts, or advertise a licensee's entertainmentline-up, drink specials, or menu items. Withthe licensee's permission, you can include thelicensee's logo in your ads, but you can'tdemand or receive financial compensation orother consideration in return.

• Provide or pay for entertainment in alicensed establishment.

What You May and MayNot DoThe Liquor Control and Licensing Act and itsRegulations set out strict rules regarding how youcan promote your products with other licensees,including liquor-primary establishments (bars andpubs), food-primary establishments (restaurants)and licensee retail stores.

Some promotional activities are prohibitedoutright; others are permitted at any time; stillothers are permitted only if you document themin a "buy-sell agreement" – a contract betweenyou and another licensee to promote yourproducts.

A buy-sell agreement spells out what you and theother licensee have agreed to and for how longthat agreement is to remain in place (it may notexceed 36 months). For example, you and a pubenter into a three-month buy-sell agreementwhere the pub agrees to purchase a certainamount of your beer or spirits in exchange foryou running a contest in the pub, with the prizeof a weekend ski getaway for two.

A buy-sell agreement must not exclude, restrictor otherwise prohibit a licensed establishmentfrom carrying or selling the products of yourcompetitors.

IMPORTANT!Please see Appendix 4 for a sample buy-sell agreement. You must follow this format or similar, and both you and thelicensee must keep a copy of the buy-sell agreement at your place of business for two years after the agreementexpires. All buy-sell agreements must include:

• your name and licence number

• the licensee’s name and licence number

• start and end dates of your agreement (may not exceed 36 months)

• the terms of the agreement – what you and the licensee have agreed to, including the type, number and retailvalue of any promotional activities or items conducted or supplied by the manufacturer or agent.

The buy-sell agreement may be signed by you, your agent or sales staff, and by the licensee or the licensee’s manageror other person in charge.

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Brewer, Distiller and Agent Licences 13Terms and Conditions

Activities Permitted AtAny Time, Without ABuy-Sell AgreementPromotional itemsYou may give promotional items of nominal value,such as coasters, tent cards and posters, to bars,pubs and restaurants to promote your products,provided:• you do not deliver them (or permit them to be

delivered) to anyone under age 19

• the licensed establishment already lists thebrand of liquor identified in the promotionalmaterials.

You may give promotional items of nominal value,such as shelf-talkers, ceiling danglers, and productdisplay structures, etc., to licensee retail stores for aspecific promotion. These materials must bereturned to you at the end of the promotion.

You may sell clothing and novelties – such as shirts,caps, key chains, etc. – with your name or brand tolicensees at fair market value at any time, whichthey may then re-sell to their customers and staff.These items may also display the name or brand ofthe licensee's establishment.

You may also sell branded glassware (glasses, beersteins, etc.) to licensees at fair market value.

Value-added promotional itemsapproved for government liquor stores If you have received approval from the LiquorDistribution Branch (LDB) to offer value-addedpromotional items in B.C. government liquor stores,you may also provide those same promotional itemsto licensee retail stores for the same promotionperiod.

All value-added promotions must follow the LiquorDistribution Branch guidelines outlined in theirbooklet, The Beverage Alcohol Promotions Program for B.C. Liquor Stores.

Under LDB guidelines, value-added promotionalitems must be of nominal value (they may notexceed 20 per cent of the retail price of the baseproduct), and must be liquor or liquor-related orbranded. Items may include:

• "on-packs," where a small bottle of anotherof your products or an item such as a bottleopener is attached to your beer or spirits

• "in-packs," where an item, such as a T-shirt, isincluded inside a case of your product, and

• "near-packs," where an item, such as a bag ofchips with your brand on it, is placed near oralongside your product and is given awaywhenever your product is purchased.

Value-added promotions may also include third-party coupons attached to your products by aneck tag or back label, or placed inside a case.These coupons may not be for a rebate orreduction on the purchase price of one of yourproducts, for a free liquor product of any kind, orfor cash.

The stores may keep any leftover items at theend of the promotional period and continue tooffer them to their customers until they are gone;however, they may not take any promotionalitems for personal use or future promotions.

You and the manufacturer or agent may advertisethese promotions.

Product vouchers for licensee retail storesYou may provide product vouchers directly tomembers of the general public, which they canredeem at participating licensee retail stores at nocharge. (You may not provide vouchers orcoupons redeemable at bars, pubs orrestaurants.)

• You must havethe store'sapproval beforeyou hand out avoucherredeemable atthat store. (Youmay not,however, directyour vouchers tojust one store orchain of stores;you must arrangeto have yourvouchersredeemed atmore than onestore or chain of stores.)

Size limits forproduct vouchers:• Distilled spirits: One

bottle of thesmallest availablesize per product(750 ml. or greater).

• Beer, Cider, Coolers:One dozen of thesmallest availablesize bottles or cans(total not exceedingfour litres).

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14 Brewer, Distiller and Agent LicencesTerms and Conditions

• Your vouchers must specify how much liquoris redeemable (a bottle of scotch, forexample, or a dozen cans of beer).

• You may specify only one type of liquor (beer,spirits or coolers) per voucher.

• You only (not licensee retail stores or otherlicensees) may distribute vouchers.

• You may use any method – in person, by mail,etc. – to distribute your vouchers.

• You may not give away product vouchers asprizes.

• Once a voucher is redeemed, you must paythe licensee retail store the full retail price forthe quantity of liquor specified on thevoucher. You may not pay an additional"redemption fee" to the store for accepting aproduct voucher.

• You must maintain records of all voucherreimbursements paid to licensee retail storesand make them available for viewing by aliquor inspector at any time.

Product samples for licensedestablishmentsYou may give product samples to bars, pubs,restaurants and licensee retail stores, to beconsumed by the licensee and staff only (notpatrons), away from the licensed area of theestablishment.

You may provide amaximum of one bottle (orone dozen bottles or cansof beer, cider or coolers)per product perestablishment in any oneyear, and you must keep arecord of all samplesprovided to licensedestablishments. This recordmust include, for eachsample, the:• name of person who

received the sample

• name of his/her establishment

• amount of product supplied, and

• date the product was supplied.

Licensed establishments must enter the productsamples in their liquor register. (You may alsowant to give the establishment a receipt toprove that the sample product is allowed onsite, but this is not required.)

Consumer tastings at a restaurantYou and a restaurant may agree to put on aconsumer tasting (also called a taste trial)together, but you must ensure the event doesnot shift the focus away from food. In addition:• You and/or the restaurant may advertise

the event outside the restaurant.

• You may not charge or accept a fee fromthe restaurant (or pay the licensee) forconducting the consumer tasting.

• You must purchase all liquor products usedin the tasting from the restaurant. The priceyou pay for the liquor served must be noless than the price the restaurant normallypays for the product and no more than theprice the restaurant normally charges itscustomers.

• The restaurant must issue you (and youmust retain) a countersigned receipt for thedollar value of the total amount of liquorand/or food purchased.

• You must be present during the entireperiod of the consumer tasting, but therestaurant staff must dispense all liquorproduct. Size limits for

product samples:• Distilled spirits: One

bottle of the smallestavailable size perproduct (750 ml. orgreater).

• Beer, Cider, Coolers:One dozen of thesmallest available sizebottles or cans (totalnot exceeding fourlitres).

Maximum quantities perpatron at a consumertasting:

SINGLE MULTIPLEPRODUCT PRODUCT

Restaurant:Spirits 10 ml. 20 ml.Wine/Cider/Beer/Coolers

30 ml. 45 ml.

Licensee Retail Store:Spirits 10 ml. 20 ml.Wine 20 ml. 30 ml.Beer/Cider/Coolers 30 ml. 45 ml.

The quantities for multiple producttasting apply only where you arepresenting more than one product at asingle tasting. The quantity formultiple products is a total of allproducts offered. For example, if youpresent three kinds of beer, you mayoffer a maximum quantity of 15 ml. ofeach to taste.

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Brewer, Distiller and Agent Licences 15Terms and Conditions

• You must not leave open containers of liquorunattended at any time.

• You must not serve drinks by the tray load.

• You may not serve minors or anyone who isapparently under the influence of alcohol.

• At the end of the consumer tasting, therestaurant must refund you or your agent forthe cost of any beer or wine, cider, coolers,beer or spirits left unopened. The restaurantmay return any leftover liquor (opened orunopened) to stock.

Consumer tastings at a licenseeretail storeYou and a licensee retailstore may agree to put ona consumer tasting (alsocalled a taste trial)together. It is up to youand the licensee retailstore (LRS) to decidewhen a consumer tastingwill take place, and howlong it will run. However,all tasting must end 30minutes before the storecloses. • You and the LRS may

advertise the tasting within or outside thestore, using promotional materials suppliedby you. (Please see the chapter on AdvertisingYour Products for more information.)

• The store may not charge you a rental fee fordemonstration space.

• You must provide a server or servers for theconsumer tasting; the server may be you orservers hired by you. (You must make surehired servers are familiar with the rulesgoverning consumer tastings at liquor stores.)

• Servers must not leave open containersunattended.

• You must purchase all products to be tastedfrom the LRS hosting the event. The priceyou pay must be no less than what the storepaid for the product and no more than theprice the store normally charges customers.

• The LRS must issue you (and you mustretain) a countersigned receipt for the dollarvalue of sampled product.

• You may not serve minors or anyone who isapparently under the influence of alcohol.

At the end of the consumer tasting:

• You or the LRS must destroy any pouredsamples, and empty any unfinished bottles

• You may not remove any opened bottles.

• You may receive a refund for unopenedproduct.

Visits to licensed establishmentsYou may visit bars, pubs and restaurants topromote your products, but there are strict limitson how you must act while you are there.

Mass treating or "buying drinks for the house" isnot allowed, and you may not leave money forthis purpose. You may, however, join customersat a table and buy a drink for everyone at thattable, provided:• You buy the drinks from the licensed

establishment.

• The liquor serving given to each adultcustomer at one time is not greater than thenormal serving for the licensed establishment.

• You pay for each order at the time it isserved (you may put the order on a "tab"provided you settle the account before youleave the establishment), and drink prices arethe same as the establishment would chargeregular patrons.

• You do not treat more than one table at atime, except where the treat involves a bonafide organization, such as a sporting team,arts or cultural club.

• The licensed establishment issues you (andyou retain) a countersigned receipt for thedollar value of the product you purchased.

• You do not bring liquor products into thelicensed establishment for patrons to sample.

Please Note:This section outlines rulesfor consumer tastings inlicensee retail stores (LRS)only. The rules forpromotions in governmentliquor stores or otherprivate liquor retail storesare similar, but pleasecontact the PromotionsDepartment of the LiquorDistribution Branch for morespecific information.

Brew Pub Exception:If you are operating a brewpub, and you have an agent’slicence, you may give samplesto your customers providedyou buy the samples fromyour brew pub and pay alltaxes.

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HospitalityYou may provide hospitality to licensees without abuy-sell agreement, if the cost of the hospitality isless than $25. Your receipts must be available forreview by a liquor inspector on request.

Contests (running in governmentliquor stores) If you have applied forand received approvalfrom the LiquorDistribution Branch torun a contest ingovernment liquorstores, you may also runthe same contest atbars, pubs, restaurantsand licensee retail storesover the same period oftime and with the samepromotional materialson display.

You must conduct all contests, install allpromotional items, and remove all promotionalitems within 10 days after the contest has ended.You may include contest entry forms in your printads, and may mention where entry forms areavailable in any of your advertising.

Contests (through the media) You may also hold contests through the media(such as phone-in radio contests). However, withmedia contests: • You must inform potential entrants that they

are not required to purchase your product toenter, and they must be of legal drinking age.

• You may not include liquor as a prize.

• Liquor licensees, their employees, LiquorDistribution Branch and Liquor Control andLicensing Branch employees and immediatefamily members of anyone in these groupsare not eligible to enter or win a contest.

• Your employees and their immediate familiesare also not eligible to enter or win a contest.

Activities PermittedWIth a Buy-SellAgreement Only

More expensive promotionalmaterialsYou may loan more expensive promotional itemswith your name or brand, such as signs, patioumbrellas, ceramic draught beer towers, mirrors,menu boards, etc., to bars, pubs, restaurants andlicensee retail stores for a specific time identifiedin a buy-sell agreement. (You may sell glasswarewith your name or brand to a licensedestablishment at fair market value at any time,without a buy-sell agreement.)You may also provide bars, pubs, restaurants andlicensee retail stores with temporary displaystructures and related promotional displays oritems. (These displays and items remain yourproperty.) And you may give T-shirts, hats andother promotional clothing items with your nameor brand on them to bars, pubs, restaurants andlicensee retail stores to give away to theircustomers.

All displays and promotional items must beindividually listed in your buy-sell agreement. Theagreement must also identify a specific time forthe loan or promotion (six months, for example),and you must remove all promotional materials atthe end of the identified time period.

Value-added promotional materialsfor licensee retail stores (that youare not also supplying togovernment liquor stores) You may provide value-added promotional itemsto licensee retail stores that you are not alsosupplying to government liquor stores, withoutLiquor Distribution Branch approval (but with abuy-sell agreement), provided the items do notcontain liquor. (Please see the earlier section onValue-added promotional materials approved forgovernment liquor stores for further rules aboutvalue-added promotional materials.)

16 Brewer, Distiller and Agent LicencesTerms and Conditions

Please Note:This section outlines rules forcontests that the LiquorDistribution Branch hasapproved to run in governmentliquor stores, that you alsowant to run in bars, pubs,restaurants and licensee retailstores. There are separaterules if your contest is onlyrunning in bars, pubs,restaurants and licensee retailstores, or through the media.

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Theme nights at a bar or pubA theme night is an opportunity for you to workin collaboration with a liquor-primaryestablishment (a bar or a pub) to promote thesale of a particular product. Theme nights are notallowed at food-primary establishments, or oncollege or university campuses.

There are no limits on the number of themenights you can hold, and you may include festiveactivities, such as games or prizes, in your themenights.

If you and a licensed establishment agree to puton a theme night:• You must ensure the event has an educational

component, such as messages on theconsequences of drinking and driving.

• The bar or pub must have food available forits patrons at all times during the theme night.

• If samples are provided, you must:- be present in the bar or pub during at least

part of event to make the offer orinvitation to taste (not the bar staff )

- purchase all sample products from the baror pub

- do the dispensing, if a special service areais set up specifically for the event (if thesamples are served using theestablishment's usual facilities, theestablishment's staff must dispense theproduct)

- serve the samples individually (you may notserve them by the tray load).

• The bar or pubmust issue (andyou must retain)a countersignedreceipt for thedollar value ofthe total amountof liquor and/orfood purchased.

• The liquor manufacturer or agent mayprovide inexpensive forms of entertainmentduring the theme night, such as games.(Payment for more expensive forms ofentertainment – live performers or DJs, forexample – is prohibited unless approved bythe general manager.)

• If you provide games, contests and prizes aspart of the theme night:- you must record the name of anyone who

wins a prize valued at over $100.00- prizes may have your name or brand on

them (unless the general manager directsotherwise)

- prizes may not be liquor or drinkscontaining liquor

- patrons must not be required to buy ordrink an alcoholic beverage to participate,and

- gambling is prohibited.

• Liquor licensees, their employees and theirimmediate family members are not eligible toenter or win a contest.

• The licensed establishment may not chargeyou a fee for conducting the theme nightevent, but you may pay the licensedestablishment a tip or gratuity – provided itdoes not exceed 15 per cent of the totalamount of liquor and/or food purchasesnoted on the countersigned receipt issued bythe licensee at the end of the event.

• The bar or pub may offer "special" themenight prices on your liquor products, providedthe prices are not lower than LiquorDistribution Branch prices and do notencourage over-consumption. You may notsubsidize the price of the products in any way,such as by paying the difference between thenormal selling price of a product and itsspecial price.

• You may advertise the theme night both on-site and off-site, provided you follow the advertising rules (see the chapter onAdvertising Your Products for moreinformation).

• For a theme night only, you may provideclothing such as T-shirts or other noveltyitems identifying your liquor brand(s) orcompany to be worn by the licensedestablishment's staff.

Brewer, Distiller and Agent Licences 17Terms and Conditions

Maximum samplequantities per patron ata theme night:

SINGLE MULTIPLEPRODUCT PRODUCT

Spirits 10 ml. 20 ml.

Beer/Cider/Coolers/Wine 30 ml. 45 ml.

The quantities for multiple producttasting apply only where you arepresenting more than one product ata single tasting. The quantity formultiple products is a total of allproducts offered. For example, if youpresent three kinds of beer, you mayoffer a maximum quantity of 15 ml.of each to taste.

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18 Brewer, Distiller and Agent LicencesTerms and Conditions

These events must be covered under a buy-sellagreement. If you are sponsoring an event at alicensed venue (a concert hall for example), youand the licensee must sign the buy-sell. If theevent also involves a licensed establishment (alocal restaurant), you and the licensedestablishment must sign a separate buy-sellagreement.

Educational events and activities You may invite other licensees to educationalevents or activities – such as an all-day "beerschool" – designed to improve their knowledge ofyour products or their ability to sell yourproducts.

You may pay for legitimate travel, meal,accommodation, and entertainment expensesassociated with the educational event, up to$1,000 per licensee location per year. Where alicensee has multiple licensed establishments – achain of restaurants, for example – you may alsopay expenses of $1,000 per person to amaximum of $3,000 per licensee head office peryear.

Hospitality You may pay a licensee for costs not associatedwith an educational event, up to $1,000 perlicensee location per year, in addition to any in-province travel costs related to the event. (Youmay provide nominal hospitality without a buy-sellagreement, if it doesn't exceed $25.)

Joint promotions/brewmaster'sdinners You may enter into a joint promotion with afood-primary or liquor-primary establishment tofeature your products during a special event, suchas a brewmaster's dinner, provided the eventincludes a full meal and the licensed establishmentpurchases the liquor served at the event from itsregular Liquor Distribution Branch liquor store orother designated outlet.

You and the licensed establishment may advertisethe event. There are no limits to the number ofjoint promotions you may hold.

Contests (that are not running ingovernment liquor stores) You may hold contests in conjunction with bars,pubs, restaurants and licensee retail stores thatare not running in government liquor stores,provided you document them in a buy-sellagreement and follow the Liquor DistributionBranch guidelines outlined in their booklet, TheBeverage Alcohol Promotions Program for B.C. LiquorStores.You must conduct all contests, install allpromotional items, and remove all promotionalitems within 10 days after the contest has ended.

You may include contest entry forms in your printads, and may mention where entry forms areavailable in any of your advertising.

SponsorshipsYou may sponsor licensee-associated sportsteams, tournaments, or events at:• unlicensed venues, or

• licensed:– sports stadiums– recreational centres (including ski hills,

racquet clubs and bowling alleys)– concert halls– university or cultural centres.

These events must be time-limited and not partof an on-going relationship with the licensedestablishment. You must notify the branch, inwriting, at least 14 days before any sponsoredactivity or event takes place if the sponsorship isfor more than $1,500 or it involves a licensedestablishment.

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Brewer, Distiller and Agent Licences 19Terms and Conditions

Promoting Your Products With Other Licensees: ASummary (Please review chapter for exact details)

Activities not permitted

You may not:

• Offer a benefit, including money, items, products or services that arenecessary for the operation of a bar, pub, restaurant or licensee retailstore, for selling your liquor products.

Activities permitted at any time, without a buy-sell agreement:

Without a buy-sell agreement you may:

• Provide another licensee with promotional items of nominal value, suchas coasters or tent cards.

• Sell promotional items, such as shirts, caps or key chains with yourbrand or logo, to licensees at fair market value for them to re-sell totheir customers.

• Offer value-added promotions in licensee retail stores that are runningconcurrently in government liquor stores

• Provide product vouchers that are redeemable at licensee retail stores.

• Visit a bar, pub or restaurant and purchase drinks for patrons.

• Offer product samples to a bar, pub, restaurant or licensee retailstore.

• Conduct consumer tastings at a restaurant or licensee retail store.

• Cover the cost of nominal hospitality worth up to $25, at any one time,per licensee.

• Conduct a contest with a bar, pub, restaurant or licensee retail store,provided you are also running the same contest at the same time ingovernment liquor stores.

Activities permitted with a buy-sell agreement only:

With a buy-sell agreement you may:

• Loan licensees more expensive promotional items, such as signs,umbrellas, mirrors or menu boards, and temporary display structuresand related promotional items.

• Offer licensees T-shirts, hats and other promotional clothing items thatthey may give away to their customers.

• Hold a joint promotion (such as a brewmaster's dinner) with a bar, pubor restaurant.

• Hold theme nights at a bar or pub.

• Conduct a contest with a bar, pub, restaurant or licensee retail storethat is not also running in government liquor stores (provided you followLiquor Distribution Branch guidelines).

• Sponsor events or activities at licensed sports stadiums, recreationalcentres, concert halls, university or cultural centres.

• Put on educational events and activities for other licensees, and paytravel and other costs.

• Pay a licensee for hospitality costs not associated with an educationalevent or activity.

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20 Brewer, Distiller and Agent LicencesTerms and Conditions

InspectionsWhy We InspectBreweries andDistilleriesBranch liquor inspectors conduct unannouncedinspections of manufacturing facilities to makesure licensees are following the Act andRegulations and their licence terms andconditions, and to make sure there are timelyconsequences when they don't.

In addition, a liquor inspector may conduct aninspection:• in response to a complaint from a member of

the public, another licensee, a localgovernment/First Nation, police or any otheragency, or

• to follow-up on a Licensed Premises Check(LPC) issued by a police officer.

Entry of LiquorInspectors and PoliceOfficersYou must give liquor inspectors and policeofficers immediate access to all areas of yourbusiness on request. It is a serious contraventionto refuse or delay providing access to aninspector or police officer, and may result in yourliquor licence being cancelled.

Keeping and ProducingDocuments and RecordsIf you have a brewery/distillery licence and/oran agent's licence, you must allow the generalmanager (or a designated person such as a liquorinspector) to inspect documents and recordsassociated with your business, including:

• liquor product sales, purchase and disposalrecords

• sales records, invoices and purchase receipts

• lease and management contracts related toyour manufacturing facility

• employee records,

• any court orders or judgments against you,and

• any agreements and contracts between youand another licensee, such as a buy-sellagreement.

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Brewer, Distiller and Agent Licences 21Terms and Conditions

EnforcementContravention NoticeIf a liquor inspector believes that you or your staff arecontravening the Act, its Regulations or the terms andconditions of your licence, the inspector must issue aContravention Notice to you,that identifies the allegedcontravention.

The inspector will then review the evidence and circumstancesof the contravention inconjunction with the LiquorControl and Licensing Branch’sfile for your establishment.Based on that review, theinspector will decide whetherto recommend that the generalmanager take enforcementaction against you, as thelicensee.

If the inspector does notrecommend enforcementaction, he or she will keep theContravention Notice in thebranch’s file on yourestablishment, and may requireyou to attend a ComplianceMeeting.

Compliance MeetingA compliance meeting is a meeting between you andthe inspector – and possibly others, such as membersof your staff, local police, government and fire officials.

The purpose of the meeting is to promote voluntarycompliance with the liquor licensing rules and to assistyou in anticipating, and creating solutions for, potentialproblems. The inspector will prepare a written recordof what is discussed including any procedures youintend to put in place to deal with the problem, andwhen they will come into effect. Once you and theinspector have signed it, you will receive a copy, and asecond copy will be placed in your establishment’s file.

Compliance meetings are not a required step beforethe branch takes enforcement action.

Notice of EnforcementActionIf a liquor inspector recommends enforcement action,and his or her regional manager concurs, you willreceive a Notice of Enforcement Action. The Noticeof Enforcement Action will include the details of theallegation, the proposed penalty, why the branch isrecommending enforcement action, and the reasonsfor recommending this particular penalty.You have the option of disputing the branch’sallegations at an enforcement hearing or signing awaiver notice.

WaiverSigning a waiver means that you• agree that the contravention occurred,• accept the penalty proposed in the Notice of

Enforcement Action,• waive the opportunity for an enforcement

hearing, and• agree that the contravention and penalty will form

part of the compliance history of the licence andthe licensee.

You may sign a waiver at any time prior to thehearing.

Pre-hearing ConferenceAfter receiving the Notice of Enforcement Action, youwill be asked to participate in a pre-hearing telephoneconference conducted by the branch’s registrar ofenforcement hearings. At the pre-hearing conference,the registrar will: • obtain your response to the allegations and

determine if an enforcement hearing is required• clarify the issues that will be addressed at the

enforcement hearing • identify and discuss the evidence that both you

and the branch plan to present at theenforcement hearing (this includes the the namesof any witnesses who will testify on your or thebranch’s behalf)

• arrange for the branch and you to exchangecopies of any documents or other evidence thatwill be introduced at the hearing

• explain the enforcement hearing process • set a date for the enforcement hearing.

If you do not participate in the pre-hearing conference,you may lose the opportunity for an oral hearing, andthe general manager may make a decision based onthe written submissions only.

Please note:As a licensee, you arelegally responsible forunderstanding and com-plying with the require-ments of the Act, itsRegulations and theterms and conditions ofyour licence, and for anycontraventions commit-ted against your licence.

You are also responsiblefor making sure youremployees follow B.C.'sliquor laws and theterms and conditions ofyour licence, even whenyou are not on site.

As the licensee, you areresponsible for any con-traventions against yourlicence.

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22 Brewer, Distiller and Agent LicencesTerms and Conditions

Enforcement HearingEnforcement hearings may be conducted in-person, viateleconference, written submission, or anycombination of these.

At an enforcement hearing, an adjudicator, who is adelegate of the general manager, will consider theevidence and argument presented by you and thebranch. The adjudicator will decide whether thealleged contravention(s) occurred and whatenforcement action, if any, is warranted. Theadjudicator issues a written decision several weeksafter the hearing.

Possible EnforcementActionIf the adjudicator decides the contravention occurred,they may • suspend the liquor licence for a period of time • impose a monetary penalty • cancel a liquor licence• impose, rescind or amend the terms and

conditions of a licence, and• order a licensee to transfer a licence.

If the adjudicator finds that either a licence suspensionor monetary penalty is warranted, they may notimpose a penalty less than the minimums set out inSchedule 4 of the Regulation. They may impose higherpenalties when it is in the public interest to do so.They are not bound by the penalties proposed in theNotice of Enforcement Action.

The type of enforcement action imposed will dependon a number of factors, including the nature of thecontravention, the circumstances of the contravention,your establishment’s compliance history, and yourcompliance history as a licensee.Any enforcement action imposed will form part of thecompliance history of the licence and the licensee.

Judicial ReviewIf you are dissatisfied with an enforcement hearingdecision, you may apply to the B.C. Supreme Courtfor a judicial review.

Note:You may represent yourself at ahearing, be represented by alawyer or you may berepresented by someone withwritten authority to act on yourbehalf.

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Brewer, Distiller and Agent Licences 23Terms and Conditions

APPENDIX 1

Penalty ScheduleSchedule 4

Enforcement Actions

Interpretation1 (1) For the purposes of this Schedule,

(a) a contravention is of the same type as another contravention if each contravention is described by thesame Item of this Schedule, and

(b) a contravention by a licensee is(i) a first contravention if the contravention was committed at or in respect of an establishment and the

licensee has not committed a contravention of the same type at or in respect of that establishment within the 12 month period preceding the commission of the contravention,

(ii) a second contravention if the contravention was committed at or in respect of an establishment and the licensee has committed one contravention of the same type at or in respect of that establishment within the 12 month period preceding the commission of the contravention, and

(iii) a subsequent contravention if the contravention was committed at or in respect of an establishment and the licensee has committed a second contravention of the same type at or in respect of that establishment within the 12 month period preceding the commission of the contravention.

(2) In section 20 (1) (c.1) of the Act and in Item 13 of this Schedule, "reasonable measures" means, in respect of a licensee, measures that are

(a) reasonable in the circumstances, and (b) reasonably within the capacity of the licensee to effect.

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Item ContraventionPeriod of Suspension (Days)

MonetaryPenaltyFirst Contravention Second

ContraventionSubsequent

Contravention

OPERATING OUTSIDE OF LICENCE PURPOSE

1Operation of a licensed establishment in amanner that is contrary to the primary purposeof the licence

10 - 15 20 - 30 30 - 60 $7 500 - $10 000

MINORS

2 A breach of section 33 of the Act [Selling liquor to minors] 10 - 15 20 - 30 30 - 60 $7 500 - $10 000

3 A breach of section 35 of the Act[Minors on licensed premises] 4 - 7 10 - 14 18 - 20 $5 000 - $7 500

4Rescinded (February 2007) A breach of section 45(2) of this regulation [Failure to requestidentification from person appearing to be under 25]

— — — —

GAMBLING

5A breach of section 36(2)(a) of the Act byauthorizing or permitting gambling in thelicensed establishment

4 - 7 10 - 14 18 - 20 $5 000 - $7 000

6A breach of section 36(2)(c) of the Act byauthorizing or permitting a device used forgambling to be placed, kept or maintained inthe licensed establishment

10 - 15 20 - 30 30 - 60 $7 500 - $10 000

DISORDERLY OR RIOTOUS CONDUCT

7A breach of section 36(2)(a) of the Act byauthorizing or permitting, in the licensedestablishment, drunkenness or violent,quarrelsome, riotous or disorderly conduct

10 - 15 20 - 30 30 - 60 $7 500 - $10 000

8A breach of section 36(2)(b) of the Act byauthorizing or permitting, in the licensedestablishment, any unlawful activities orconduct

10 - 15 20 - 30 30 - 60 $7 500 - $10 000

INTOXICATED PERSONS

9A breach of section 43(1) of the Act by sellingor giving liquor to an intoxicated person or aperson apparently under the influence of liquor

4 - 7 10 - 14 18 - 20 $5 000 - $7 000

10 A breach of section 43(2)(a) of the Act bypermitting a person to become intoxicated 4 - 7 10 - 14 18 - 20 $5 000 - $7 000

11A breach of section 43(2)(b) of the Act bypermitting an intoxicated person to remain inthat part of the licensed establishment whereliquor is sold or served

4 - 7 10 - 14 18 - 20 $5 000 - $7 000

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Brewer, Distiller and Agent Licences APPENDIX 1 25Terms and Conditions

Item ContraventionPeriod of Suspension (Days)

MonetaryPenaltyFirst Contravention Second

ContraventionSubsequent

Contravention

WEAPONS

12 A breach of section 47 of the Act [Licensee'sduty - dangerous weapons] 4 - 7 10 - 14 18 - 20 $5 000 - $7 000

LICENSEE RESPONSIBLE FOR DISTURBANCE OF PERSONS IN THE VICINITY

13

A failure to take reasonable measures to ensurethat the operation of the licensed establishmentis not contrary to the public interest and doesnot disturb persons in the vicinity of theestablishment

10 - 15 20 - 30 30 - 60 $7 500 - $10 000

OVERCROWDING

14

Permitting more persons in the licensedestablishment than the patron or personcapacity set by the general manager and thenumber of persons in the licensedestablishment in less than or equal to theoccupant load

1 - 3 3 - 6 6 - 9 $1 000 - $3 000

15

Permitting more persons in the licensedestablishment than the patron or personcapacity set by the general manager and thenumber of persons in the licensedestablishment is more than the occupant load

4 - 7 10 - 14 18 - 20 $5 000 - $7 000

ILLICIT LIQUOR

16 A breach of section 38 of the Act [Unlawfulsale of liquor] 10 - 15 20 - 30 30 - 60 $7 500 - $10 000

17 A breach of section 38.1 of the Act [Unlawfulto dilute or adulterate liquor] 4 - 7 10 - 14 18 - 20 $5 000 - $7 000

18 A breach of section 39 of the Act [Unlawfulpurchase of liquor] 10 - 15 20 - 30 30 - 60 $7 500 - $10 000

19A breach of section 35(3) of this regulation byfailing to keep and maintain a register of allliquor purchased and received

1 - 3 3 - 6 6 - 9 $1 000 - $3 000

20

A breach of section 35(1) of the regulation bypurchasing liquor other than from a liquor storedesignated in writing by the general manager ordesignated by the Liquor Distribution Branch,or without identifying the licensee as a licensee

1 - 3 3 - 6 6 - 9 $1 000 - $3 000

21A breach of section 36 of this regulation byselling or providing under one licence liquorthat is purchased under another licence withoutauthorization of the general manager

10 -15 20 - 30 30 - 60 $7 500 - $10 000

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26 APPENDIX 1 Brewer, Distiller and Agent LicencesTerms and Conditions

Item ContraventionPeriod of Suspension (Days)

MonetaryPenaltyFirst Contravention Second

ContraventionSubsequent

Contravention

LIQUOR SERVICE

22A breach of section 43 of this regulation by thelicensee failing to complete the requiredtraining program

4 - 7 10 - 14 18 - 20 $5 000 - $7 000

23A breach of section 43 of this regulation by amanager or server failing to complete therequired training program

1 - 3 3 - 6 6 - 9 $1 000 - $3 000

24

A breach of section 44 (1)(a) of this regulationby a licensee with a liquor primary licence orliquor primary club licence failing to clear thelicensed establishment of patrons within ½hour after the time stated on the licence for thehours of liquor service, or other time authorizedby the general manager

1 - 3 3 - 6 6 - 9 $1 000 - $3 000

25

A breach of section 44(1)(b) of this regulationby a licensee with a food primary licencefailing to ensure that liquor is taken frompatrons within ½ hour after the time stated onthe licence for the hours of liquor service, orother time authorized by the general manager

4 - 7 10 - 14 18 - 20 $5 000 - $7 000

26

A breach of section 44(3) of this regulation byallowing a person to consume liquor in thelicensed establishment beyond ½ hour after thetime stated on the licence for the hours ofliquor service, or other time authorized by thegeneral manager

4 - 7 10 - 14 18 - 20 $5 000 - $7 000

27A breach of section 42(3) of this regulation as aresult of an employee or the licenseeconsuming liquor while working on thelicensed premises

1 - 3 3 - 6 6 - 9 $1 000 - $3 000

28A breach of section 42(2) of this regulation bypermitting liquor not purchased from thelicensee to be consumed in the licensedestablishment

4 - 7 10 - 14 18 - 20 $5 000 - $7 000

29A breach of section 42(4) of this regulation bypermitting liquor sold in the licensedestablishment to be taken from theestablishment

1 - 3 3 - 6 6 - 9 $1 000 - $3 000

30

A breach of section 41(2) of this regulation byproviding unlimited or unspecified quantities ofliquor for a single price, using a sales strategythat is likely to promote or encourageintoxication, or altering the price of liquorduring a day after it has been set for that day

4 - 7 10 - 14 18 - 20 $5 000 - $7 000

PRODUCTION OF RECORDS

31A breach of section 73 (1) (a), 73 (2) (a) or 73(2) (b) of the Act [Failure to produce adocument or record or thing]

10 - 15 20 - 30 30 - 60 $7 500 - $ 10 000

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Brewer, Distiller and Agent Licences APPENDIX 1 27Terms and Conditions

Item ContraventionPeriod of Suspension (Days)

MonetaryPenaltyFirst Contravention Second

ContraventionSubsequent

Contravention

ADVERTISING

32 A breach of section 49 of the Act [Display ofsigns] 1 - 3 3 - 6 6 - 9 $1 000 - $ 3000

33 A breach of section 51.1 of the Act [Advertisingliquor] or section 58 of this regulation 1 - 3 3 - 6 6 - 9 $1 000 - $3 000

ENTERTAINMENT

34Permitting in the licensed establishmententertainment by one or more exotic dancers orstrippers that is prohibited or restricted undersection 50 of the Act

4 - 7 10 - 14 18 - 20 $5 000 - $ 7 000

35Permitting in the licensed establishment anyother entertainment that is prohibited orrestricted under section 50 of the Act

1 - 3 3 - 6 6 - 9 $1 000 - $ 3000

LICENSING CONTRAVENTION

36A breach of section 15 (2) of the Act [Failureto disclose a material fact or false ormisleading statement in application]

10 - 15 20 - 30 30 - 60 $7 500 - $10 000

37A breach of section 18 of the Act [Tied houses]by failing to disclose to the general managerthe information that must be disclosed underthat section

10 - 15 20 - 30 30 - 60 $7 500 - $10 000

38A breach of section 19 (3) of the Act bytransferring shares of the licensee's capitalstock without first receiving the generalmanager's approval for that transfer

1 - 3 3 - 6 6 - 9 $1 000 - $3 000

39

A breach of section 7 of this regulation bymaking structural alteration of or change to thesize of any area of the licensed establishmentwithout first receiving the written permission ofthe general manager

1 - 3 3 - 6 6 - 9 $1 000 - $3 000

INDUCEMENTS

40A breach by the licensee or an employee of thelicensee of section 45 of the Act [Licensee not togive or accept gifts for promoting liquor]

10 - 15 20 - 30 30 - 60 $7 500 - $10 000

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28 APPENDIX 1 Brewer, Distiller and Agent LicencesTerms and Conditions

Item ContraventionPeriod of Suspension (Days) Monetary

PenaltyFirst Contravention SecondContravention

SubsequentContravention

PROMOTIONAL ACTIVITY

40.1

A breach of section 50.1(3)(d) of this regulationby engaging in promotional activity if thatpromotional activity is required to be, but isnot, documented in an appropriate buy-sellagreement

1 - 3 3 - 6 6 - 9 $1 000 - $3 000

U-BREW/U-VIN

41A breach of section 23 of this regulation byfailing to ensure that the customer performs thelisted tasks

4 - 7 10 - 14 18 - 20 $5 000 - $7 000

42

A breach of section 22 [Payment,acknowledgment and invoice required], 24[Licensee or employee production], 25 [Storagerequirements], 26 [No consumption other thantasting], 27 [Customer required to bottle ownproduct], 28 [Removal of finished productrequired], 30 [Minors], 31 [Record keeping andreporting requirements], 32 [Advertisements]or 33 [Hours of operation] of this regulation

1 - 3 3 - 6 6 - 9 $1 000 - $ 3000

43A breach of section 29 of this regulation byfailing to ensure that beer, wine or cider is notkept, offered or produced for sale at a U-Brewor U-Vin

10 - 15 20 - 30 30 - 60 $7 500 - $10 000

DEFAULT IN MONETARY PENALTIES

44A breach of section 20 (2.6) of the Act [Failureto pay monetary penalty within 30 days orperiod specified by the general manager]

10 - 15 20 - 30 30 - 60

OTHER

45

A breach of section 20 of the Act by permittingthe sale, service or consumption of liquor whilethe licensee's licence is under suspension,or

A breach of section 67 (3) of the Act, by(a) obstruction or attempting to obstruct anentry or search by a peace officer under section67 of the Act, or(b) refusing or failing to admit immediately apeace officer demanding entry anywhere undersection 67 of the Act,orA breach of section 73 (1) (b) (ii) or (iii) of theAct by neglecting or refusing to allow storagepremises or an establishment licensed under theAct to be inspected,orA breach of section 73 (2) (c) of the Act byneglecting or refusing to allow premises to beinspected

If the licence is notcancelled or transferred inaccordance withsection 69 of thisregulation, atleast 15 days

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Brewer, Distiller and Agent Licences APPENDIX 1 29Terms and Conditions

Item ContraventionPeriod of Suspension (Days) Monetary

PenaltyFirst Contravention SecondContravention

SubsequentContravention

GENERAL

46Any breach of any provision of the Act, theregulations or the terms and conditions of thelicence not specifically referred to in Items 1 to 45

1 - 3 3 - 6 6 - 9 $1 000 - $3 000

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30 APPENDIX 1 Brewer, Distiller and Agent LicencesTerms and Conditions

APPENDIX 2Making Changes to Your

Liquor LicenceChanges that Require Approval from the

General Manager

Permanent changeYou must apply for a permanent change if you want to:• change the name of your business

• change anyone or any company – owners, directors, officers, partners, shareholders, corporations or holding companies

• transfer shares either externally to new shareholders, or internally between current shareholders,if you are a private corporation

• add a receiver or executor.

Structural change (manufacturers only)You must apply for a structural change if you want to:• change your floor plans

• change (or add to) the structure of your building

Transfer of locationYou must apply for a transfer of location if you want to:• re-locate your business

Third-party or resident manager changeYou must apply for a third-party operator or resident manager change if you want to:• change (or add) a third-party lessee or management firm operating within your licensed

establishment

• change your resident manager, if you are a non-resident private corporation.

Temporary changeYou must apply for a temporary change if you want to: • make a change or changes for a relatively short period. These changes may include temporarily moving

your business to another location entirely.

• host a special event at your manufacturing facility which may require de-licensing specific areas, applyingfor an extension of a sampling area, etc. (We encourage you to contact your local liquor inspector for more information.)

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Brewer, Distiller and Agent Licences APPENDIX 1 31Terms and Conditions

Application Forms, Documentation and Other Required Approvals

The application form, documentation and approvals you will need depend on the type of change you are askingfor. For example:

• To alter the structure or layout of your building, you will need an Application for a Structural Change, andto supply large scale floor plans.

• To change or add a third-party lessee or management firm, you will need anApplication for a Third-Party Operator or Resident Manager, and to supply arange of company documents and a completed criminal record search formfor each new person.

• To transfer shares, you will need an application for a Permanent Change to aLiquor Licence, and all shareholders will need to agree to a criminal recordcheck.

The individual application forms explain the documentation and/or approvalsrequired for each type of change. The Fee Schedule for Licence Changes lists thefee charged for each type of change.

Criminal record checksSome changes will require that you consent to a criminal record check. To do so, you must complete both thePersonal History Summary and Consent to Criminal Record Search form and the RCMP Consent for Disclosureof Criminal Record Information.

Applicants who have applied for a liquor licence and consented to a criminal record search within the previous12 months are exempt, unless requested to consent to another search by the general manager.

Applicants living outside of Canada, refugees and permanent residents who have been in Canada for less thanfive years and anyone who has been charged or convicted of a crime must also provide a statutory declaration– signed by a lawyer, Notary Public, or Commissioner for Taking Affidavits – stating that they have not beencharged or convicted of a crime, or providing details of any past charges, convictions or sentences. In addition,permanent residents who have been in Canada less than five years must attach a copy of their “Record ofLanding” (Form IM1000, Permanent Resident Card or equivalent documentation) as provided by Citizenshipand Immigration Canada when they entered the country.

Once we have the required documents, we will send them on to the RCMP. They will check the person's nameand birth date and other information against criminal records across Canada, and report back to us with thefinal results:

• If the search reveals no criminal record, we will continue to process your change request.

• If the RCMP are unable to confirm the information you provided on the statutory declaration, and thesearch reveals a possible relevant criminal record, we will ask the applicant to go to the local police orRCMP station to provide fingerprints. (The police may charge a fee for this service.) Specially trainedanalysts will compare these fingerprints to the prints associated with the criminal record.

Even if it turns out that an applicant does have a criminal record, however, it does not mean we willautomatically turn down the application. We will look carefully at the circumstances of the individual case – theseverity of the crime and when it was committed, for example, and what the applicant has done to change hisor her behaviour since then – and how the type of crime committed relates to the responsibilities that go withholding a liquor licence.

Application Forms:Forms are available from the LiquorControl and Licensing branch:

WEB:www.gov.bc.ca/pssg(look under “Liquor Licensing”)

PHONE, toll-free:1 866 209-2111

E-MAIL: [email protected]

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32 APPENDIX 2 Brewer, Distiller and Agent LicencesTerms and Conditions

APPENDIX 3 CRTC Code For Broadcast

Advertising of Alcoholic BeveragesCommercial messages for alcoholic beverages shall not:• attempt to influence non-drinkers of any age to drink or purchase alcoholic beverages;

• be directed at persons under the legal drinking age, associate any such product with youth or youthsymbols, or portray persons under the legal drinking age or person who could reasonably be mistaken forsuch persons in a context where any such product is being shown or promoted;

• portray the product in the context of, or in relation to, an activity attractive primarily to people under thelegal drinking age;

• contain an endorsement of the product, personally or by implication, either directly or indirectly, by anyperson, character, or group who is or is likely to be a role model for minors because of a past or presentposition of public trust, special achievement in any field of endeavour, association with charities and/oradvocacy activities benefiting children, reputation or exposure in the mass media;

• attempt to establish the product as a status symbol, a necessity for the enjoyment of life or an escape fromlife's problems, or attempt to establish that consumption of the product should take precedence over otheractivities;

• imply directly or indirectly that social acceptance, social status, personal success, or business or athleticachievement may be acquired, enhanced, or reinforced through consumption of this product;

• imply directly or indirectly that the presence or consumption of alcohol is, in any way, essential to theenjoyment of an activity or an event;

• portray any such product, or its consumption, in an immoderate way;

• exaggerate the importance or effect of any aspect of the product or its packaging;

• show or use language that suggests, in any way, product misuse or product dependency, compulsivebehaviour, urgency of need or urgency of use;

• use imperative language to urge people to purchase or consume the product;

• introduce the product in such a way or at such a time that it may be associated with the operation of anyvehicle or conveyance requiring skill;

• introduce the product in such a way or at such a time as may associate the product with any activityrequiring a significant degree of skill, care or mental alertness or involving an obvious element of danger;

• contain inducements to prefer an alcoholic beverage because of its higher alcoholic content;

• refer to the feeling and effect caused by alcohol consumption or show or convey the impression, bybehaviour or comportment, that the people depicted in the message are under the influence of alcohol;

• portray persons with any such product in situations in which the consumption of alcohol is prohibited; or

• contain scenes in which any such product is consumed, or that give the impression, visually or in sound,that it is being or has been consumed.

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Brewer, Distiller and Agent Licences APPENDIX 2 33Terms and Conditions

APPENDIX 4 Sample Buy-Sell Agreement

BUY-SELL AGREEMENT

BETWEEN

Parties: __________________________________ and __________________________________Liquor Manufacturer/Agent Licensee

(licence name as shown on face of licence) (licence name as shown on face of licence)

__________________________________ and __________________________________Liquor Manufacturer/Agent Licence Number Licensee Licence Number

Purpose: The contractual obligations stated below are agreed to and will be adhered to byboth Parties throughout the duration of this agreement.

Duration (must not exceed 36 months):Start Date: _________________________ End Date: _______________________

Terms Agreed to by Licensee:

1. ______________________________________________ hereby agrees to:Licensee

A. Purchase or order over the duration period:

B. Placement of promotional items, product displays, point-of-sale or similar material:_____________________________________________________________________________________________________________________________________________________________________________________over the duration period.

Terms Agreed to by Liquor Manufacturer/Agent:

2. In return for the considerations noted above ____________________________ agrees to: Liquor Manufacturer/Agent

A. Provide (promotional items such as mirrors, ceramic draft beer towers, menu boards, patio umbrellas, or T-shirts, hats, etc.):

______________________________________________________________________________________________________________________________________________________________________________________RETAIL VALUE: $________________

Product Name UPC Size Quantity/Volume

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34 APPENDIX 3 Brewer, Distiller and Agent LicencesTerms and Conditions

Buy-Sell Agreement - PAGE 2

B. Conduct (theme night or manufacturer's dinner contest): __________________________________________________________________________________________________________________________________________________________________________RETAIL VALUE: $__________

C. Implement Value-Added Promotions (on-packs, in-packs, near-packs, or coupons): ____________________________________________________________________________________________________________________________________________________________________________RETAIL VALUE: $____________

D. Other (educational events or activities):____________________________________________________________________________________________________________________________________________________________________________RETAIL VALUE: $____________

Conditions and Understanding:

Promotional activities must be directed to the consumer and promotional items must be providedto or be for the principal benefit of patrons.

This Agreement shall not exclude, restrict or otherwise prohibit the licensee from carrying,selling, or displaying the products of any other liquor manufacturer/agent.

Both Parties agree to maintain, on site, certifiable copies of this Buy-/Sell Agreementand any related documents for two years after their expiry date. All such documents must beavailable and provided, without delay, when requested by the general manager of the LiquorControl and Licensing Branch.

Buy-Sell Agreements must not exceed 36 months in duration.

Value- added items may not exceed 20% of the retail price of the liquor item being promoted.

The names of recipients of prizes over $100 must be recorded and retained with this agreement.

Despite any provision in this agreement to the contrary, the Parties agree not to engage in anypromotional activity that is not, or that ceases to be, authorized under one or more of:a. The Liquor Control and Licensing Actb. The Liquor Control and Licensing Regulationc. The terms and conditions to which one or more of the parties are subject to under

licence from the Liquor Control and Licensing Branch.

This Agreement and its contents have been read and are fully understood.

Authorized Signatory:

____________________________________ and _________________________________Liquor Manufacturer/Agent Name Licensee (or manager)

____________________________________ __________________________________Position or Title Position or Title

Dated this _____ day of ______________ 2_ _ _ at ___________________, British Columbia.

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PSSG-07003 revised March 2008

LCLB200-BDA