Questions and Answers Alcohol regulations discussion document

Transcription

1 Questions and Answers Alcohol regulations discussion document What is the intention of the new alcohol Act? The Sale and Supply of Alcohol Act (2012) aims to reduce alcohol availability and improve community input into decision making about alcohol. It places tighter controls on who can get a licence to sell alcohol and how alcohol can be promoted to the public. The Act extends the role of local councils by enabling councils to establish local alcohol polices. It also shifts much of the licence decision-making to the local level. The core licensing activities of councils will be administering the alcohol licensing system, and undertaking regular compliance and enforcement activities. Why are regulations needed? Regulations are needed to give full effect to the law. Regulations set out forms, fees and definitions to provide clarity and guidance to decision makers, enforcement officials and local communities. What are the new obligations for licensees? The new law sets out a range of new obligations for licences, including ensuring that water, food and access to transport is available to patrons. There will be more rigour around who obtains a licence and licencees will have to provide better information to support licensing inspectors and Police in their jobs. This means licensees will have to record relevant information about their managers, such as periods of appointment, dates of granting and expiry of managers certificates, full name and date of birth. These records, held on the premises, will enable immediate compliance checks to be undertaken. Why is the licensing system changing? The process for licensing needs to be updated to reflect the changes in the new Act. The proposed regulations make the licensing system more user-friendly and reduce the compliance burden. They reduce the number of forms for licence applications and renewals from 24 to seven. They clarify the processes for applying for, and renewing, licences and managers certificates. The regulations also make the application, notification and appeal processes clearer. The regulations will support district licensing committees in their new function of considering contested as well as uncontested applications. What are the infringement offence regulations? The new laws expand infringement offence provisions so that Police will be able to issue infringement notices for a wider range of offences than before (e.g. manager or employee intoxicated on duty and offences related to evidence of age documents). 1

2 Licensing inspectors will be able to issue notices for some of these offences, for example if a manager is intoxicated on duty or sells spirits in container larger than 500ml. Regulations are needed to clarify the infringement fee for each offence, and the information the notices and reminder notices will contain. How have the infringement offence fees been set? The new law requires that any infringement fee does not exceed $1,000. The regulations propose to set different fees for different offences depending on the gravity of the offence. For example a licensee permitting a minor to be in a restricted area is a more serious offence than a technical offence such as selling spirits in a vessel exceeding 500ml. The proposals for different fees balances the disincentive effect of fines with the fact that fees set too high will be more difficult to collect. What is changing around evidence of age documents? Evidence of age documents, and the steps and requirements for applying for them, are an important part of reducing alcohol-related harm in young people. No immediate changes are proposed to the current system. The consultation document seeks feedback on any known issues with the current 18+ card, and asks for potential solutions to deal with these. Why regulate the remote sale of alcohol? With increased alcohol sales through remote mechanisms, the new Act requires better alignment between the remote sale of alcohol and the sale of alcohol from premises. The goal is to limit under-age sales and reduce alcohol-related harm. The regulations will prescribe the information to be displayed on remote sellers websites, catalogues and in receipts. The regulations would also provide examples of how remote sellers can comply with the law s requirements to take reasonable steps to verify that buyers are over the purchase age. Views are being canvassed on how remote sellers could comply with the law s requirements to verify purchase age. The document seeks feedback on the following proposals: that a declaration of age be required (for example through a tick box), and an age verification component through provision of evidence of age (eg a scanned copy of evidence of age documentation). Why are regulations needed to define a grocery store? The new Act defines the types of premises eligible for an off-licence, including bottle stores, supermarkets and grocery stores. It also states that dairies and convenience stores cannot sell alcohol. 2

3 Selling alcohol from supermarkets and grocery stores promotes the association between alcohol and food, consistent with the overall policy goal of encouraging safe and responsible drinking. Specialty alcohol stores are consistent with the principle that alcohol is not an ordinary commodity. The Act states that to be considered a grocery store a premises must comply with three factors: have the characteristics commonly associated with grocery stores, AND sell a range of food products as its principal business. (Food products exclude alcohol, confectionery, ready-to-eat prepared food and snack food) AND sell other household items The distinction between dairies and grocery stores that can sell alcohol has previously been unclear. The proposed regulations provide clarity by providing definitions of principal business, read-to-eat food, and snack food to support decision making on licence applications and renewals. These proposed regulations will reduce inconsistency in the granting of licences. How do the regulations define a grocery store? The document proposes two options to ensure that the sale of food products is the principal business of a grocery store. Submitters are asked to comment on which option is the most robust and workable, and why. Option one requires that the sale of food products (as defined in the new Act) exceed a specified figure of the premise s annual sales revenue. The threshold (potentially in the range 35% to 50%) will be specified following feedback. Option two requires that the sale of food products must be the highest single contributing category of a premise s annual sales revenue, with no single other individual category exceeding it, reflecting the concept that principal business is the highest single contributor of a premises sales revenue. Definitions of ready-to-eat prepared food and snack food are proposed, so that these items can be accurately categorised for the purposes of determining principal business. While the document proposes to create a list of potential foods for inclusion in the definition in regulations, this will not be a prescriptive list. Rather, the definition and list of examples will provide a guide for determining these foods. A prescriptive list would be too limiting and would not take into account changes in consumer or retail behaviour. 3

4 How will the definition of grocery stores affect delicatessens? Delicatessens may be eligible for an off-licence as a grocery store if they meet the criteria for a grocery store, being: having the characteristics commonly associated with grocery stores, AND sell a range of food products as its principal business. (Food products exclude alcohol, confectionery, ready-to-eat prepared food and snack food but include delicatessen items such as sliced meat and cheese) AND sell other household items Some delicatessens will need to adjust their business model. To be eligible to meet the grocery criteria, they will have to sell household items (eg pasta makers, knives) and they will need to limit the amount of alcohol, confectionary or ready to eat and snack food they sell, so that food products are their principal business. The final decision will lie with the District Licensing Committee when considering a delicatessen's application for a liquor licence. How will the definition of grocery stores effect complementary licences such as florists that sell alcohol as part of a gift basket? The definition will have no effect. A complementary licence can be issued for shops if: the principal business carried on is not the sale of food, AND alcohol would be an appropriate complement to the goods sold in the shop. What happens if premises are no longer able to sell alcohol? Eligibility for a licence will be reviewed when licensees apply for a licence renewal. Premises that do not meet the new definitions will not get a licence renewal. There will be a transitional process, whereby premises may receive a licence for a period of up to two years from date of assent (18 December 2012). An exception can be applied in remote areas where it would be uneconomic to run an off-licence. A district licensing committee could, in this case, grant a licence to premises that may not be considered a grocery store. This means in remote rural communities a general or similar store may be granted an off-licence. How will these regulations affect local alcohol policies? Communities will be able to influence licensing decisions through local alcohol policies (LAPs). These policies are required by the new Act to be publicly notified at the provisional stage and once adopted. Proposed regulations specify what is 4

5 meant by public notification, what should be contained in these public notices, and their timing. As the ability to appeal an LAP is new, there is currently no process by which people can appeal to the Alcohol Licensing and Regulatory Authority about the content of a LAP. The regulations will specify the information required for those making an appeal. How do these regulations affect local alcohol policies currently being consulted by councils? A number of councils have begun their LAP consultation process. The LAPs are in draft form at this stage in their development and are not affected by the proposed regulations. If, after producing a draft policy a territorial authority still wants to have a LAP, it then drafts a provisional LAP. At this point the councils will have to comply with the public notification requirements of the proposed regulations. Provisional LAPs cannot be notified until 18 December 2013 when the regulations will also come into force. How do I have my say? Consultation on the proposed regulations to give effect to the new alcohol laws will run until 26 July The discussion document is available on Submissions can be made to alcohol@justice.govt.nz (please include Regulations submission in the subject line of your ) or posted to the Ministry of Justice, Vogel Centre, DX SX10088, WELLINGTON (Attention: Chris Bourne). 5