Liquor Control and Licensing Branch Licensed Clubs Consultation August - September 2015 The Liquor Policy Review (LPR) and recommendations has created a unique opportunity to review and modernize existing liquor law and policy. Recommendation #54 1 mandates a consultation with the licensed clubs of BC in order to determine if any changes to the current regulatory framework are desired to align the model with the basic liquor primary (LP) and food primary (FP) licences. The LP and FP club licences differ in several ways from the basic LP and FP licences. Members at licensed clubs may have locker privileges meaning that a club member may buy liquor from the licensee and keep it in a personal storage space at the club to consume on the premises. Many clubs have a green lined alternate use space a space, in addition to the red lined liquor service area, called the green lined area that is event driven. When the area is not in use for an event the licence and its terms and conditions are not in effect. This gives the club flexibility to have liquor free, or Special Occasion Licensed (SOL) events in the space. In the case of an SOL event the club cannot serve its own liquor as the SOL license must purchase liquor under the SOL. Similarly to the green-lined area, some clubs are also permitted an off premises green lined area. This space is usually an area on the club s property, like a yard or patio, which the licensee can host events. Clubs may only admit members and a limited number of members guests. The club must keep records of club patrons and guests. Clubs are not permitted to admit, or advertise to, the general public. Clubs are not eligible for a catering endorsement and may not use facilities to cater events serving food or liquor to the public. Clubs may not subcontract food or beverage services. A veteran s club liquor licence is automatically cancelled if the club or the club s parent organization ceases to exist, or if the club branch is not in good standing with the parent organization. Clubs must not be managed by a third party. Over the years, the LCLB has received requests from clubs who wish to cater or invite the general public into the club often for fundraisers or other community events. Some clubs have voluntarily given up the 1 54. Government should consult with clubs to determine if there is interest in repealing the club designation, and reclassify the licence as food-primary or liquor-primary. Page 1 of 6
club designation and its privileges to become a basic LP that can welcome the public for events and obtain a catering endorsement. Other clubs are hesitant to give up the designation, its locker privileges and the flexibility afforded by the green lined areas. This consultation aims to examine the club designation and if recent and planned changes to the liquor licensing framework support a transition for all clubs to basic licences as government endeavors to reduce red tape. Recent and planned changes to liquor policy have reduced the potential impact of many of the concerns clubs have traditionally shown with regard to transitioning to a basic licence. Several other provinces have a distinct club licence that permits the club to restrict entry to members. In these provinces the licensee must meet membership quotas and other requirements such as the presence of standards and evidence of meetings in order to qualify for the club licence. In Manitoba, club licences are part of a grouping of licensees that include retirement homes, airport lounges, spas and other lower risk licensed establishments. Because of a lower risk of community impact for these types of establishments they likely receive less public scrutiny at application than a traditional nightclub. Similarly, Nova Scotia s club licence is differentiated from its basic licence as it can be issued without public consultation. In these cases the club licences have restrictions similar to those in place in BC they must restrict entry to members and limited guests, they must show a certain level of membership and in some cases they may not operate for profit. Ontario, on the other hand, does not have a special club licence but as all liquor licences are granted and inspected on a risk basis it is likely that a veterans club would be given less attention than a nightclub. A new Liquor Control and Licensing Act was recently passed and prior to bringing it into force new regulations for all licensees must also be developed. Government will use feedback from this consultation to develop the new regulations for clubs. Please consider the following questions and respond to the LCLB in writing by xx or call xxx to arrange to give feedback over the phone. Part 1 1. Has your club, or any branch of your club, considered transitioning to a basic licence (FP or LP)? Why or why not? 2. Does your club have and/or use the locker privilege ability? If so, how important is this to your members? 3. Does your club have and use green-lined areas? If so how important is this to the operation of your club? How many times a year do you host events that use the green-lined areas? 4. Have you ever wanted to hold events for the general public or open your doors to patrons who may not be members or their guests? Why or why not? 5. Have you ever wanted a catering endorsement or the ability to cater events beyond those hosted by the club for members? Would this ability be of interest to your club? Why or why not? Page 2 of 6
Part 2 Below is an example of how club licences could operate if transitioned to a basic licence. Please comment on the model with regards to: 1. Do you support this model? Why or why not? 2. What would have to change about this model for it to have your support? 3. If you support maintaining the status quo please explain. Current operating rule Locker privileges (section 27 Privileges) Green lined alternate use spaces (inside and outside). SOLs permitted. Admission limited to members and a limited number of members guests. Clubs are not permitted to admit, or advertise to, the general public. Clubs are not eligible for a catering endorsement and may not use facilities to cater events serving food or liquor to the public. Clubs may not subcontract food or beverage services. A veteran s club liquor licence is automatically cancelled if the club or the club s parent organization ceases to exist, or if the club branch is not in good standing with the parent organization. Third party management Changed for new model (LP) Locker privileges may be grandfathered in some cases but no new locker privileges will be granted. Green lined areas will transition to event-based alternate use spaces similar to theatres. For theatres if the space is not in use for an event where liquor is served then an alternate nonliquor event may occur in the space and the licence terms and conditions are not in effect. SOLs would not be permitted (but would not be needed as the club could host events and include to the public and serve under their basic licence see below). Clubs would be able to restrict admission to members and guests if they chose or open to the public (either all the time or at chosen times). This would be extended to those who have an FP as well as their LP. The basic LP licence permits the addition of a catering endorsement if appropriate food preparation facilities and equipment exist. Restrictions on subcontracting would be repealed. The licences would be standalone. Clubs could be associated with a parent organization but their licence would not cease to exist without the connection. Permitted Please contact Melanie Golder with either your written response at Melanie.Golder@gov.bc.ca or call 250-952-5757 to discuss over the phone by September 16, 2915. Thank you very much for your time. Page 3 of 6
Appendix: Club policies Liquor Control and Licensing Act "club" means a corporation incorporated under the laws of British Columbia (a) that has been in continuous operation as a club for at least one year immediately before the date of its application for a licence under this Act, (b) that has not less than 50 members, (c) whose members pay an annual membership fee of not less than $10, (d) that has prime objects or purposes of a social, athletic, recreational, fraternal, benevolent or patriotic nature, (e) that has its own facilities, (f) that is not operated primarily for pecuniary gain, and (g) that does not sublet its catering or the sale of liquor, and includes a veterans' club; "veterans' club" means (a) The Royal Canadian Legion, (b) Army, Navy, and Air Force Veterans in Canada, (c) War Amputations of Canada, (d) The Royal Canadian Air Force Association, (e) a chartered branch of an organization listed in paragraph (a), (b), (c) or (d) that is in good standing with the central organization, (f) British Ex-Servicemen's Association of Vancouver, or (g) The Royal Canadian Naval Association; When licence issued to club becomes void 24 (1) A licence issued to a club is void if the club ceases to exist. (2) The general manager may determine whether a club has ceased to exist for the purposes of this Act. Sale only to members and guests 25 A club that holds a licence must sell liquor only to an actual member of or an actual guest of a member of the club. Liquor kept for personal consumption 27 If a club, recreational centre, community centre or municipal or Provincial cultural centre is a licence holder (a) the general manager may direct that the licence entitles the members of the club to keep on the club establishment a reasonable quantity of liquor for personal consumption on the club establishment, and (b) the general manager may authorize the sale of liquor for consumption by members and their guests (i) on the premises elsewhere than in that portion of the establishment covered by the licence, or (ii) off the premises. Page 4 of 6
Suspension of charter 28 On suspension or cancellation by the central organization of a veterans' club of the charter of a branch of that veterans' club that holds a licence, the licence held by that branch is void. Club to be in good standing 29 A chartered branch of a veterans' club is not entitled to apply for, obtain or hold a licence while not in good standing with the central organization. Liquor Control and Licensing Regulations List of officers of club 51 (1) A club must file with the general manager a complete list of its officers showing the name, address and occupation of each officer. (2) Immediately after a change occurs in the officers of a club, the club must file a revised list of officers with the general manager. Register of visitors to club 52 (1) A club that holds a liquor primary club licence must keep a visitors' register and must enter in that register the following information: (a) the name of each guest; (b) the name of the member accompanying each guest; (c) the date the guest is in attendance. (2) A person who is not a member, an employee or a registered guest of the club must not be or remain in a part of the club where liquor is being sold, served or consumed. Licensing Guide (LP) The general rules for a liquor primary club licence are similar to the liquor primary licence, but some special rules do apply. For example, to be eligible for a licence, a club must: be legally incorporated as a society have been in continuous operation for at least one year have at least 50 members who pay $10 or more in annual membership fees have its own facilities, and do its own catering and liquor sales (these functions may not be sublet) In addition, clubs must: only sell liquor to members or their guests keep a visitors register impose a limit on the number of guests entering the club, and report to the branch the results of their annual board elections (this keeps the branch informed about who is responsible for the liquor licence). Page 5 of 6
A club may not solicit the general public in its advertisements. If the club ceases to exist, the liquor licence is void. A club with no members and/or no facilities is considered to no longer exist (if the club has no members, then it cannot legally sell liquor). If minors are permitted in your establishment, they are not required to be signed into the visitor s register. Off-premises sales If you have an endorsement for off-premises sales, you may sell your products only until 11 p.m. each evening, and customers must immediately leave your establishment as soon as they have made their purchases. Page 6 of 6