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Volume 59, No. 2

25/2016

The British Columbia Gazette,

Part II

February 23, 2016

B.C. Reg. 25/2016 , deposited February 18, 2016, under the SPECIAL WINE STORE LICENCE AUCTION ACT [section 15] and the LIQUOR CONTROL AND LICENSING ACT [section 84]. Order in Council 80/2016, approved and ordered February 17, 2016.

On the recommendation of the undersigned, the Lieutenant Governor, by and with the advice and consent of the Executive Council, orders that,

(

a) the Special Wine Store Licence Auction Act , S.B.C. 2015, c. 20 , is brought into force,

(

b) the Special Wine Store Licence Auction Regulation set out in the attached

Schedule 1 is made, and

(

c) the Liquor Control and Licensing Regulation, B.C. Reg. 244/2002, is amended as set out in the attached

Schedule 2.

— C. OAKES, Minister of Small Business and Red Tape Reduction and Minister Responsible for the Liquor Distribution Branch ; T. LAKE, Presiding Member of the Executive Council .

Schedule 1

SPECIAL WINE STORE LICENCE AUCTION REGULATION

Contents

Definition

Number of special wine store licences

Grocery store

Deposit

Fee for substituting grocery store on general manager’s list

Time for paying auction price and for submitting application and fees

Auction procedures

Exception to forfeiture of deposit

Definition

1 In this regulation, “Act” means the Special Wine Store Licence Auction Act .

Number of special wine store licences

2 For the purposes of

section 2 (2) of the Act, the prescribed number of special wine store licences is 18.

Grocery store

3 The following types of food and non-alcoholic beverages are specified for the purposes of the definition of “grocery store” in

section 1 of the Act:

(

a) canned, dry and frozen food;

(

b) fresh fruits and vegetables;

(

c) fresh and prepared meats, fish and poultry;

(

d) dairy products;

(

e) baked products;

(

f) snack foods;

(

g) juices, carbonated beverages and flavoured beverages.

Deposit

(1) For the purposes of

section 4 (

b) of the Act, the prescribed amount of the deposit is $25 000.

(2) For the purposes of

section 4 (

b) of the Act, the following are the prescribed additional forms of deposit:

(

a) money order;

(

b) cheque drawn on an account of a business;

(

c) bank draft.

(3) The amount of the deposit submitted by a successful bidder is credited to the auction price to be paid by the successful bidder.

Fee for substituting grocery store on general manager’s list

5 For the purposes of

section 7 (3) (

b) of the Act, the prescribed fee is $330.

Time for paying auction price and for submitting application and fees

(1) For the purposes of sections 9 and 10 (

b) of the Act, the prescribed time for paying the auction price is 30 days.

(2) For the purposes of

section 10 (

a) of the Act, the prescribed time for submitting a complete application and fees is 60 days after the general manager sends an email notifying the successful bidder that the bidder has been added to the general manager’s list.

Auction procedures

(1) For the purposes of

section 4 (

c) of the Act, the minimum bid is $125 000.

(2) The successful bid in a special wine store licence auction is the highest bid.

(

a) a grocery store in which a special wine store is located,

(

b) a special wine store, or

(

c) a special wine store licence.

(5) In subsection (4), “special wine store” means the location approved by the general manager within a grocery store from which BC wine may be sold under a special wine store licence.

Exception to forfeiture of deposit

8 For the purposes of

section 12 of the Act, the deposit of a successful bidder is not forfeited if the bidder’s application for a special wine store licence is refused under

section 16 (1) (

a) of the Liquor Control and Licensing Act because, in the general manager’s opinion, the bidder is not a fit and proper person.

Schedule 2

Section 1 (1) of the Liquor Control and Licensing Regulation, B.C. Reg. 244/2002, is amended

(

a) by adding the following

definitions:

“BC wine” means

(

a) wine in respect of which the naturally occurring sugar used in the fermentation process comes from only

(

i) plant products grown in British Columbia,

(ii) honey produced from beehives located in British Columbia, or

(iii) milk from animals located in British Columbia,

(

b) cider in respect of which the naturally occurring sugar used in the fermentation process comes from only plant products grown in British Columbia, and

(

c) sake in respect of which the rice used in its production is grown only in British Columbia;

“grocery store” means a grocery store that meets the requirements of

section 13.09;

“special wine store” means the location approved by the general manager within a grocery store from which BC wine may be sold under a special wine store licence;

“special wine store licence” means a licence originally issued to a successful bidder under the Special Wine Store Licence Auction Act that

(

a) authorizes the licensee to sell BC wine from a specified grocery store, and

(

b) is held by the bidder or a person to whom the licence has been transferred; ,

(

b) by repealing the definition of “wine” and substituting the following:

“wine” means

(

a) liquor obtained by the fermentation of the naturally occurring sugar of plant products, honey or milk,

(

b) cider, and

(

c) sake; , and

(

c) by adding the following

definitions:

“wine store” does not include a special wine store;

“wine store licence” does not include a special wine store licence; .

Section 6 (5) is amended by striking out “ wine store ” and substituting “ wine store, special wine store ”.

3 The heading to Division 2 of

Part 3 is repealed and the following substituted:

Division 2 – Licensee Retail Store, Wine Store and Special Wine Store Licences .

Section 13.08 is amended by adding the following definition:

“proposed location of a special wine store” means the proposed location of a special wine store that is the subject of an application to the general manager

(

a) for issuance of a special wine store licence, or

(

b) for consent to amendment of the special wine store licence to relocate the store under

section 21.1 of the Act; .

Section 13.09 (

a) is repealed and the following substituted:

(

a) be primarily engaged in retailing the following types of food and non-alcoholic beverages:

(

i) canned, dry and frozen food;

(ii) fresh fruits and vegetables;

(iii) fresh and prepared meats, fish and poultry;

(iv) dairy products;

(

v) baked products;

(vi) snack foods;

(vii) juices, carbonated beverages and flavoured beverages, and .

Section 13.10 is repealed and the following substituted:

Sales revenue of grocery store

13.10

(1) This

section applies to the following licences:

(

a) a licensee retail store licence for a licensee retail store that is located in a grocery store;

(

b) a wine store licence for a wine store that is located in a grocery store or is part of a grocery store;

(

c) a special wine store licence.

(2) It is a term and condition of a licence referred to in subsection (1) that the licensee provide proof to the general manager that the sales revenue derived from the sale of food and non-liquor beverages at the grocery store in which the licensee retail store, wine store or special wine store is located

(

a) totals at least 70% of the total sales revenue of non-liquor products at the grocery store, and

(

b) totals more than 50% of the total sales revenue of liquor and non-liquor products at the grocery store.

(3) For the purposes of subsection (2), the sales revenue of a grocery store in which a licensee retail store or wine store is located must be calculated based on the following periods:

(

a) the 12-month period following the relocation of a licensee retail store or wine store to the grocery store;

(

b) after the 12-month period referred to in paragraph (a), every 12-month period preceding the renewal of the licensee retail store licence or wine store licence.

(4) For the purposes of subsection (2), the sales revenue of a grocery store in which a special wine store is located must be calculated based on the following periods:

(

a) the 12-month period following the issuance of the special wine store licence;

(

b) after the 12-month period referred to in paragraph (a), every 12-month period preceding the renewal of the special wine store licence;

(

c) despite paragraphs (

a) and (b), if the special wine store is relocated to a different grocery store, the 12-month period following the relocation of the special wine store and, after that 12-month period, every 12-month period preceding the renewal of the special wine store licence.

(5) A licensee referred to in subsection (2) must, within 3 months after the applicable period referred to in subsection (3) or (4), provide proof to the general manager that the requirements referred to in subsection (2) are met.

Section 14 (3.2) (a) (ii) is repealed and the following substituted:

(ii) the grocery store does not contain a licensee retail store, liquor store, wine store or special wine store and is not

(

A) the proposed location of another store, other than the licensee retail store that is the subject of the application for relocation,

(

B) the proposed location of a wine store, or

(

C) the proposed location of a special wine store, and .

Section 14 (3.3) is amended by striking out “ in the following circumstances: ” and substituting “ in either of the following circumstances: ”.

Section 14.1 is amended

(

a) in subsection (1) (

b) by striking out “ hours of wine service ” and substituting “ hours of service ”,

(

b) in subsection (3.2) by striking out “ in the following circumstances: ” and substituting “ in either of the following circumstances: ”,

(

c) by repealing subsection (6) and substituting the following:

(6) Section 16 (1) (

b) and (

c) of the Act does not apply to a wine store licence that was converted under

section 75 of this regulation from an appointment that authorized the sale of only BC VQA wine, within the meaning of the Wines of Marked Quality Regulation, B.C. Reg. 79/2005, even if after the conversion the type of wine authorized to be sold under the wine store licence changes. , and

(

d) by repealing subsections (8), (9), (10) and (12) and substituting the following:

(8) For the purposes of

section 21.1 of the Act, the general manager may give consent to amendment of a wine store licence, other than a wine store licence that is held by a winery or that authorizes the sale of only wine for sacramental purposes, to relocate the wine store from the location named on the licence to a location that is in or is part of a grocery store if

(

a) the wine store

(

i) will be physically separated from the grocery store business of the grocery store in a manner satisfactory to the general manager, or

(ii) will be, subject to subsections (10) and (11), part of the grocery store, and

(

b) the grocery store does not contain a licensee retail store, liquor store, wine store or special wine store and is not

(

i) the proposed location of a wine store, other than the wine store that is the subject of the application for relocation,

(ii) the proposed location of another store, or

(iii) the proposed location of a special wine store.

(10) The general manager may give consent to amendment of a wine store licence under subsection (8) to relocate the wine store to a location that is part of a grocery store, provided that the wine store licensee, other than the licensee of a wine store licence referred to in subsection (6), owns the grocery store.

10 The following sections are added:

(

a) only BC wine may be sold in the special wine store;

(

b) subject to limitation by the general manager, hours of service must start no earlier than 9 a.m. and end no later than 11 p.m.;

(

c) subject to limitation by the general manager, minors are allowed to be present in the special wine store;

(

d) consumption of wine within the special wine store is not allowed except as authorized by the general manager.

Location of special wine stores

14.102

(1) A special wine store licence must not be issued in respect of a grocery store, or amended to relocate the special wine store to a different grocery store, unless the grocery store does not contain a special wine store, licensee retail store, liquor store or wine store and is not

(

a) the proposed location of a special wine store, other than the special wine store that is the subject of the application for issuance or relocation,

(

b) the proposed location of another store, or

(

c) the proposed location of a wine store.

(2) In the case of a renewal of a special wine store licence in which the grocery store to be specified in the licence is not yet in operation, the special wine store licence must not be renewed unless

(

a) the plans for the proposed grocery store indicate that the store will meet the requirements of

section 13.09, and

(

b) the proposed grocery store is not

(

i) the proposed location of a special wine store,

(ii) the proposed location of another store, or

(iii) the proposed location of a wine store.

11 Sections 14.2 and 14.3 (2) are amended by striking out “ licensee retail store or wine store ” and substituting “ licensee retail store, wine store or special wine store ”.

Section 14.4 is amended

(

a) in subsections (1) and (2) (

e) by striking out “ licensee retail store or wine store ” and substituting “ licensee retail store, wine store or special wine store ”, and

(

b) by repealing subsection (2) (

f) and substituting the following:

(

f) in the case of a temporary off-site sale authorization granted under a temporary off-site sale endorsement in respect of a wine store or special wine store, the licensee may sell only the liquor that is permitted to be sold under the licensee’s wine store licence or special wine store licence, as the case may be.

13 Items 3 and 4 of the table that follows

section 41 (4) are repealed and the following substituted:

Item

Liquor Category

Price per oz. or 28.4 ml

(not including sales tax)

Packaged beer, cider or coolers

(packaged in bottles or cans)

$0.25

Wine or fortified wine, other than cider

$0.60

Section 43 (2) is amended by adding the following paragraph:

(

f) special wine store licences.

Section 50 (1) is amended by repealing paragraph (

d) of the definition of “designated category of liquor” and substituting the following:

(

d) wine, other than cider; .

Section 54.03 (

b) is repealed and the following substituted:

(b) 18 litres of wine, other than cider, and .

Schedule 1 is amended

(

a) under the heading “ Licence Application Fees ” by adding the following item, as indicated:

Item

Fee ($)

12.1

Special wine store

2 200

(

b) under the heading “ Annual Licence Fees ” by adding the following item, as indicated:

Item

Fee ($)

16.2

Special wine store licence for first year of licensing

2 200

(

c) in item 17 by striking out “ wine store and food primary ” and substituting “ wine store, special wine store and food primary ”,

(

d) in item 31 (

c) by adding “ wine store, special wine store ” after “ licensee retail store, ”, and

(

e) by repealing item 31 (d).

Schedule 4 is amended in items 36.3 and 45.3 by striking out “ licensee retail store or wine store licence ” and substituting “ licensee retail store, wine store or special wine store licence ”.

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