Introducing the Liquor Bill, 2003

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Introducing the Liquor Bill, 2003

• Parliament
• 2 April 2003

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Background

• Liquor policy in 1997
• Liquor Bill approved by Parliament in 1998
• Bill referred to Constitutional Court
• Constitutional Court judgement
• Manufacturing distribution (national)
• Retail licensing and Micro manufacturing
  (exclusive provincial)

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Principles of Liquor Policy

• Liquor as a potentially harmful substance
  requiring strict regulation
• Public interest prohibitions
• Need for effective regulation of manufacture,
  distribution and retail of liquor
• Need for compliance and severe penalties
• Addressing historical legacy
• Restructuring of industry three tier system
• Promoting co-operative governance

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Objectives of Liquor Bill, 2003

• Reduce socio-economic and other costs of liquor
  consumption by
• National norms and standards
• Regulating manufacture and distribution of liquor
• Ensuring regulation of retail and
  micro-manufacture of liquor
• Maintain economic unity in structure of industry
• Promote
• Entry of new participants
• Diversity of ownership
• Social responsibility

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Chapter 1

• Definitions
• Objects
• Application of Act
• Norms standards where provincial laws
• Default provisions where no provincial laws

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Chapter 2 Public interest prohibitions

• No trade if not registered
• No trade in concoctions
• No sale to minors
• No sale/supply near schools
• No employment of minors, if selling
• No violence/drunkenness on registered premises
• No sale to persons under influence
• No consumption in certain areas
• Province may vary marked prohibitions.

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Chapter 3 Registration of manufacturers and
distributors

• Part A Registration
• Qualifications
• Prohibition on vertical integration
• Lodgement of application
• Processing of application
• Publication in gazette and in newspapers
  (manufacturing) within 30 days
• Consultations with applicant within 60 days
• Decision within 30 days after consultation (can
  include terms conditions)

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Chapter 3 Registration of manufacturers and
distributors

• Part B Consequences
• Registration certificate, validity register
• Transfer of registration
• Variation of terms conditions of license
• Death, insolvency or incapability of registered
  person
• Annual registration fee
• Part C Cancellation
• By Minister, voluntary or through liquidation
• Part D Judicial review by High Court

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Chapter 4Regulation of manufacture, distribution
and retail

• Regulates transactions of registered
  manufacturers, micro manufacturers, distributors
  and retailers

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Chapter 5 Compliance

• Appointment of inspectors
• Functions of inspectors
• Powers of inspectors
• Entry with or without warrants
• Limitation on use of force
• Issuance of Compliance notices
• Obligation to assist inspectors
• Cancellation of registration closure of
  premises

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Chapter 6Offences and Penalties

• Hierarchy of penalties
• Vicarious Liability
• Administrative Fines, if no prosecution can
  appeal

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Chapter 7National Liquor Policy Council

• Composition
• Minister MECs
• Representatives of provincial liquor authorities
  (non-voting)
• Functions
• Consult on national norms and standards, national
  policy, regulations and provincial laws, industry
  matters, administration monitoring
• Dispute resolution
• Proceedings
• Minister convenor and chairperson
• Bi-annual meetings
• Consensus decision-making

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Chapter 8Regulations

• By Minister
• Matters required, necessary or expedient ito Act
• Matters relating to methylated spirits
• By Minister NLPC
• Matters affecting sale, sorghum beer,
  micro-manufacturers

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Chapter 9General provisions

• Limitation of liability of State
• Delegation of Ministerial powers to officials
• Provision for transitional arrangements

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Schedule 1Norms and Standards

• For provinces with legislation
• To require licenses for retail
  micro-manufacturing
• To establish adequately-funded independent
  authority
• To keep a register provide information to
  Minister monthly
• To ensure determination of hours, days and zones
  for sale
• May not authorise cross-tiers without ministerial
  approval

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Schedule 2Default legislation

• Establishes provincial liquor authority (PLA)
• Qualifications to register as micro-manufacturer
  or retailer (same as s13)
• Application to register as micro manufacturer
• Application to register as seller
• Variation or cancellation of licenses
• Powers to issue regulations notices
• Compliance

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Schedule 3Transitional Provisions

• Exemptions, licenses and approvals in force
  before Act, deemed to be registrations as per
  Sch. 5
• Compliance within 3 years iro divestiture
• Existing special consent for storage, lapses in 3
  years.
• Existing Ministers consent to enter binding
  trade agreements, lapses on 31Dec. of Act
• Pending applications, to be disposed of ito prior
  statute
• Liquor boards recognized

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Schedule 4 5Repeal and conversions

• Schedule 4 repeal of laws
• Liquor Act 1989
• Liquor Amendments Acts, 1993 1995
• Sections of Airport Company Act Liquor Products
  Act
• Schedule 5 conversion of exemptions, licenses
  and approvals

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Questions Clarification?
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Thank you