NEWSLETTER: FEBRUARY 2005
ALL YOU NEED TO KNOW ABOUT THE NEW LIQUOR ACTS
The Liquor Act 59 of 2003 came into effect on 13 August 2004. Before proclamation of this Act, Provincial Liquor Authorities were responsible for the regulation of all the value chain categories of the Liquor Industry. This Act provides for the manufacturing and distribution of liquor to be regulated at national level while micro manufacturing and retailing continue to be regulated at provincial level.
The Gauteng Liquor Act 2 of 2003 (GLA) came into
operation on 1 November 2004 and provides for the
control of the retail sale and supply of liquor within
the Gauteng Province. There are 10 requirements that
must be complied with in an application for a liquor
licence.
What follows is a brief discussion of some of the
most important sections of the GLA:
1. HOW TO APPLY FOR A LICENCE
Every application for a new licence must be made to the relevant local committee of the district or metropolitan area, in which the licence is sought, in the prescribed form by lodgement with the secretary of the local committee.
| NOTE: The GLA does not invalidate existing licences but the licence holder must submit such licence to the Board for conversion into a licence under the GLA, in which event such licence is deemed to have been issued in terms of the GLA. If the holder of a licence fails to submit it for conversion, such licence shall lapse. The time period within which to do this must still be promulgated in the Provincial Gazette. |
2. NOTICE OF APPLICATION
| 2.1. | Every applicant must give notice of application by publication in no less than two newspapers circulating in the area in which the premises are situated, in the prescribed manner and in the Provincial Gazette as well as causing the notice to be affixed at the premises. |
| 2.2. | The notice
of application must be made within 7 days prior
to the lodgment of the application. |
| 3. | WHO IS DISQUALIFIED
FROM BEING GRANTED A LICENCE? |
| 3.1. | The GLA states
that a licence or permit shall not be granted
to any person who - |
| (a) | has in the Republic or elsewhere in the preceding 10 years been convicted and sentenced for any offence to imprisonment without the option of a fine; | |
| (b) | has in the preceding 5 years been convicted of an offence in terms of this Act or the Liquor Act, 1989 (Act 27 of 1989), and was sentenced to a fine of not less than R200.00 or to imprisonment without the option of a fine. | |
| (c) (d) (e) (f) (g) |
is an unrehabilitated insolvent; is a minor; is the spouse of a person contemplated in paragraph (a), (b) or (c); is a liquor producer or the agent of a liquor producer; is a manufacture of beer, other than a micro-manufacturer or the agent of such person; |
|
| (h) | is a person who has a financial interest in the business of producer or a manufacturer of beer, or the agent of such a person; | |
| (i) | is a company in which shareholders having a financial interest in the business of a producer or a manufacturer of beer, together hold a controlling interest , or the agent of such a company; or | |
| (j) | is a company in which a company contemplated in paragraph (i) holds controlling interest, or the agent of such a company; | |
| (k) | is not domiciled in the Republic. |
4. WHAT ARE THE RIGHTS OF A LICENCE HOLDER?
| (a) | The holder of an on-consumption licence may also sell or supply newspapers, light refreshments and smokers’ requisites on the licensed premises, or conduct such other business thereon as the board, on application, when granting the licence concert may, on application, at anytime thereafter, approve subject to such conditions as the Board may think fit; and |
| (b) | The holder of a liquor store licence may also sell or supply minerals waters, other drinks, tobacco, cigar, cigarettes, matches, cooler bags and such other article as the Board may authorize. |
5. VALIDITY OF LICENCES AND PERMITS
A licence or permit which has been issued, shall be valid from the date of payment of the prescribed fee.
Every licence must be renewed annually within 12
months from the date of issue by payment of an annual
prescribed fee.
A licence will lapse.
| (a) | on date on which the licensee abandons it in writing; or |
| (b) | within 2 months after the lapse of the renewal period in respect of which the applicable prescribed fees are not paid; or |
| (c) | on a date otherwise determined by the Board. |
A permit will lapse on a date set by the Board on granting the permit.
6. TRANSFER OF LICENCES AND PERMITS
6.1. Non – transferability of permits
A permit issued in terms of this Act shall not be transferable to another person.
6.2. Applications for transfer of licence
|
The Board shall not grant such an application-
(a) unless the prospective holder concerned –
(i) is of good character and is otherwise fit and
proper to be issued a licence in terms of this Act;
and
(ii) is not disqualified in terms of this Act; or
| (b) | if the possibility exists that the granting of the application may cause a harmful monopolistic condition to arise or be aggravated in the liquor trade or a branch thereof. |
| 6.3. | Upon granting an application for the transfer of a licence the Board shall issue a licence to the transferee who then becomes the licensee, with all rights and obligations of a licensee in terms of this Act. |
7. WHAT DOES THE ACT PROHIBIT?
It is an offence by a licensee to –
| (a) | fail or refuse to comply with any condition of licence or contravene any provision of this Act; |
| (b) | keep the licensed premises open for the sale, supply or consumption of liquor or sell or supply any liquor at time when the sale of liquor is not permitted in terms of the licence and this Act; |
| (c) | sell or supply liquor in a place where the sale or supply of liquor is not permitted in terms of the licence; |
| (d) | fail to keep any record which he or she is by virtue of this Act required to keep, or keep such a record in an inadequate or improper manner, |
| (e) (f) (g) (h) |
fail or refuse to comply with any notice issued
in terms of this Act or any direction or order
of the Board; allow drunkenness or licentious conduct on the licensed premises; sell or supply liquor to an intoxicated person or a person under the age of 18 years, in respect of an off –consumption licence, open or allow to be opened on the licensed premises any receptacle containing liquor sold by him or her. |
8. PENALTIES
Any person who is guilty of an offence in terms of this Act, shall on conviction be liable to a fine not exceeding R100 000.00 or to imprisonment for period not exceeding 10 years or both such fine and imprisonment.
| For a more detailed discussion of the national Liquor Act 59 of 2003 or should you require any further information send an e-mail to: lesley@legaledge.co.za |
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