15.09.09 NORFOLK ISLAND Liquor (Amendment) Bill 2009 ________________________________________________________ A Bill for An Act to amend the Liquor Act 2005 to provide for the issue of importer packaged liquor licences and related purposes. BE IT ENACTED by the Legislative Assembly of Norfolk Island as follows: PART 1 — PRELIMINARY Short title 1. This Act may be cited as the Liquor (Amendment) Act 2009. Commencement 2. This Act commences on the day on which notification of its assent is published in the Gazette. Principal Act 3. In this Act the Liquor Act 2005 is referred to as the principal Act. Schedule 4. The principal Act is amended as set out in the applicable items in the Schedule. SCHEDULE ITEM 1. AMENDMENTS Section 14 – Inspectors of licensed premises Repeal section 14 and substitute― “Inspectors of licensed premises 14. (1) In respect of licensed premises, other than premises in respect of which an importer packaged liquor licence is granted― (a) the police officer-in-charge shall be the chief inspector of licensed premises, for the purpose of this Act; and (b) the Chief Executive Officer may appoint other persons to an be inspector of licensed premises. (2) In respect of licensed premises for which an importer packaged liquor licence is granted the executive member may appoint a person to be an inspector of such licensed premises.”. 2 Liquor (Amendment) 2009 2. Section 16 - Categories of licence Omit paragraph 1(e), substitute― “(e) BYO licence; (f) importer packaged liquor licence.”. 3. Section 17 – Applications for licences Following subsection (8), insert― “(9) An applicant for an importer packaged liquor licence must be an eligible applicant under Part 5A.”. 4. Section 18 - Inspector’s report for application for licence Following subsection (4), insert― “(5) This section does not apply to an importer packaged liquor licence.”. 5. New section 18A Following section 18, insert― “Inspector of importer packaged liquor licence premises 18A. (1) An inspector appointed under section 14(2) is required and empowered to― (a) investigate and report in writing to the Registrar on investigations into (i) the character of applicants for; (ii) the fitness and capacity of applicants to hold; (iii) the weight to be given to the value of the testimonials accompanying applications for; and (iv) the eligibility and character of an applicant for the transfer of an interest in, an importer packaged liquor licence; and (b) deliver a report made under paragraph (a) to the Registrar within 30 days of receiving notice of an application for the issue or transfer of an interest in an importer packaged liquor licence. (2) The Registrar shall, as soon as practicable after receiving a report under paragraph 1(b), give a copy of the report to the applicant. (3) An applicant may, within 7 days after receiving a copy of the report, lodge with the Registrar a response to the report before the Board considers the application.”. 3 6. Liquor (Amendment) 2009 New section 23A Following section 23, insert― “23A. Importer packaged liquor licence (1) Only 2 importer packaged liquor licences may be issued at any one time. (2) An importer packaged liquor licence authorises the licensee to― (a) import liquor into Norfolk Island; (b) supply liquor on the licensed premises in sealed containers, bottles or cans, subject to any declaration under subsection 25(1), during the hours between 8:00 am and 6:00 pm for consumption off the licensed premises; and (c) provide on the licensed premises liquor by way of sampling or tasting without or at nominal cost, in such quantities and in such part of the licensed premises as the executive member may approve, to a person of or over the age of 18 years for consumption on the premises at any time between 11:00 am and 8:00 pm. (3) An importer packaged liquor licence is subject to— (a) a condition that the predominant activity carried on in the area set aside as the licensed premises is the sale by retail of liquor for consumption off the licensed premises; and (b) a condition that, following the period of 3 months after the grant or transfer of the licence to the licensee, the area set aside as the licensed premises is, at any time when it is open for business, under the management or control of a person who has completed a responsible service of alcohol program approved by the executive member under subsection (4); and (c) a condition that every person who has the management or control of the area set aside as the licensed premises when it is open for business must have completed, in the previous financial year, a responsible service of alcohol program approved by the executive member under subsection (4); (d) a condition that the licensee comply with the code of conduct (if any) determined by the executive member under subsection (5) as in force from time to time; (e) the terms and conditions provided in Part 5A; and (f) any other conditions determined by the executive member and specified in the licence. (4) The executive member may, from time to time, approve programs to be responsible service of alcohol programs for the purposes of the licence condition referred to in subsection (3)(b) and the licence condition referred to in subsection (3)(c). 4 Liquor (Amendment) 2009 (5) The executive member may, by notice published in the Government Gazette, determine a code of conduct for licensees of importer packaged liquor licences. (6) The executive member may, at any time by notice published in the Gazette, vary or revoke the code of conduct under subsection (5). (7) The executive member must not determine a code of conduct, or vary or revoke it, until the executive member has consulted importer packaged liquor licensees and the Board. (8) If— (a) the licensed premises under an importer packaged liquor licence is located within premises used primarily as a general store; and (b) the licensee is the owner of the general store business; and (c) the Board so determines and specifies in the licence— the importer packaged liquor licence also authorises the licensee to receive payment for liquor supplied on the licensed premises at any checkout located in the general store if the person receiving the payment is of or over the age of 18 years. (9) In this section— “general store” means a supermarket, convenience store or mixed business shop, used primarily for the retail sale of groceries or associated household items.”. 7. Section 26 – Applications for variation of licence Omit paragraph 1(b), substitute― “(b) the chief inspector; or (c) in the case of an importer packaged liquor licence— an inspector appointed under section 14(2).”. 8. Section 27 – Chief inspector’s report for transfer of licence Insert after “chief inspector” ― “or in the case of an importer packaged liquor licence—an inspector appointed under section 14(2)”. 9. Section 30 – Application for variation by chief inspector Insert after “chief inspector”, wherever occurring— “or in the case of an importer packaged liquor licence— an inspector appointed under section 14(2) 10. Section 32 – Application for suspension or cancellation Following subsection (4), insert― “(5) This section does not apply to an importer packaged 5 Liquor (Amendment) 2009 liquor licence.”. 11. Section 34 – Application for disqualification of licensee or of licenced premises Following subsection (3), insert― “(4) This section does not apply to an importer packaged liquor licence.”. 12. Section 38 – Right to lodge objection to applications for grant etc, of licence Insert after “inspector”, wherever occurring— “or in the case of an importer packaged liquor licence— an inspector appointed under section 14(2)”. 13. Section 45 – Grant of licence–relevant considerations Following subsection (5), insert― “(5A) In addition to the requirements to be satisfied in subsection 45(1), an applicant for an importer packaged liquor licence must satisfy the Board that— (a) the applicant is an eligible applicant under Part 5A; and (b) the applicant and the proposed licensed premises satisfy the conditions referred to in section 23A.”. 14. Section 46 – Variation of licence–relevant considerations Following subparagraph (1)(e), insert― “; (f) in the case of an importer packaged liquor licence— the applicant still meets the requirements in subsection 45(1) and 45(5A), as if those subsections applied to this subsection.”. 15. Section 47 – Relocation of licence–relevant considerations Following subparagraph (1)(e), delete “.”; and insert― “; (f) in the case of an importer packaged liquor licence— the applicant still meets the requirements in subsection 45(1) and 45(5A), as if those subsections applied to this subsection.”. 6 Liquor (Amendment) 2009 16. Section 48 – Grant of licence In paragraphs (1)(a) and (1)(b) insert after “―” “for licences other than importer packaged liquor licences,”. 17. Section 50 – Transfer of licence–relevant considerations Following subparagraph (1)(e), insert― “(f) in the case of an importer packaged liquor licence— the proposed transferee meets the requirements in subsection 45(1) and 45(5A), as if those subsections applied to this subsection.” 18. New Part 5A Following section 62, insert— “PART 5A – IMPORTER PACKAGED LIQUOR LICENCE 62A. Allocation of eligible applicant status (1) In this section “licence” means “importer packaged liquor licence”. (2) The executive member may allocate eligible applicant status in accordance with the prescribed price-based allocation procedures. (3) The prescribed price-based allocation procedures must prescribe the procedures to be applied in allocating eligible applicant status— (a) by auction; or (b) by tender; or (c) by allocation for a pre-determined price or a negotiated price. (4) The procedures for allocation by auction may deal with any of the following matters— (a) the types of auction; (b) advertising of auctions; (c) entry fees for prospective bidders; (d) reserve prices (if any); (e) deposits (if any) payable by successful bidders; (f) methods of payment by successful bidders. 7 Liquor (Amendment) 2009 (5) The procedures for allocation by tender may deal with any of the following matters— (a) the types of tender; (b) advertising of tenders; (c) entry fees for prospective tenderers; (d) reserve prices (if any); (e) the method for resolving which of 2 or more equal tenders is to be successful; (f) deposits (if any) payable by successful tenderers; (g) methods of payment by successful tenderers. (6) The procedures for allocation for a pre-determined or negotiated price may deal with any of the following matters— (a) the way in which prices are to be determined or negotiated; (b) advertising of proposed allocations; (c) methods of payment by successful bidders. (7) The number of persons who may be allocated eligible applicant status may not exceed the number of importer packaged liquor licences that are able to be issued under subsection 23A(1). 62B. Fees and term of licence (1) The licensee of an importer packaged liquor licence shall pay to the Administration a prescribed annual fee (if any) which must be— (a) a fixed fee; or (b) a prescribed percentage of— (i) the volume of liquor sold; or (ii) the gross revenue from sales of liquor during a prescribed prior period. (2) Regulations may provide that the annual fee if prescribed under paragraph (1)(b) may be paid in advance by instalments and adjusted at the end of the prescribed period. (3) An importer packaged liquor licence continues until it is— (a) cancelled for cause in accordance with section 62D; or (b) surrendered by the licensee. 62C. (1) (a) (b) (c) General conditions of licence A licensee must not engage in conduct relating to― price-fixing; or restriction of the persons— (i) from whom liquor for sale may be imported or otherwise purchased; or (ii) to whom liquor may be sold; or allocating customers, or suppliers. Penalty: (a) 100 penalty units; and (b) cancellation of licence. 8 Liquor (Amendment) 2009 (2) In subsection (2) “engage in conduct” has the same meaning as in subsection 3(3) of the Fair Trading Act 1995. (3) The executive member may impose conditions on a licence that are in addition to but not in substitution for any conditions imposed by this Act or the Regulations. 62D. (1) licence”. (2) section. (3) (a) Cancellation of licences In this section “licence” means “importer packaged liquor A licence may be cancelled only in accordance with this the grounds upon which a licence may be cancelled are— order of the Court following conviction for a breach of a provision of this Act for which cancellation of licence is a prescribed penalty; (b) a serious or persistent breach of the Act or the Regulations, (c) a serious or persistent breach of the Code of Conduct established under subsection 23A(5); (d) a breach of a condition of the licence stated in the licence to be a condition breach of which will lead to licence cancellation; (e) a serious or persistent breach of a condition or conditions of the licence being a condition other than one referred to in paragraph (d). (4) For the purposes of subsection (3)— (a) a serious breach is a breach that is incapable of being rectified or has led to prosecution of the licensee and the recording of a conviction; and (b) a persistent breach is one where the licensee has committed two or more breaches within a period of 24 months and the executive member has issued to the licensee a notice of the breach requiring that it be rectified and notifying the licensee that one or more further breaches may lead to the licence being cancelled. (5) The executive member may cancel a licence under the provisions of paragraphs (3)(b),(c), (d) or (e) but before doing so must give the licensee notice that he or she intends to cancel the licence. (6) A notice given under subsection (5) must— (a) state the grounds upon which the executive member relies to cancel the licence; (b) provides the licensee with not less than 21 days within which to— (i) provide the executive member with a written response to the grounds stated in the notice; and (ii) a written statement of any reasons why the licensee believes the executive member should exercise his or her discretion not to cancel the licence. 9 Liquor (Amendment) 2009 (7) After the expiration of the notice period under subsection (6) the executive member, after consideration of any matters put to him or her by the licensee, must determine whether or not to cancel the licence and — (a) if the licence is to be cancelled—notify the licensee forthwith and publish notice of the cancellation in the Gazette; or (b) if the licence is not to be cancelled—notify the licensee forthwith and stating in the notice any conditions to be attached to the licence, and in either case must give to the licensee his or her reasons for so doing. (8) Application may be made to the Administrative Review Tribunal for review of a decision of the executive member under subsection (7) and for the purposes of section 16 of the Administrative Review Tribunal Act 1996, the following are persons whose interests are affected by the decision— (a) the licensee; and (b) the Administration. 62E. Nominees, death, incapacity and insolvency of licensees (1) The provisions of Part 5 apply mutatis mutandis to this Part with the following exceptions— (a) a reference to the Board is reference to the executive member; (b) a reference to the Registrar is reference to the executive member; (c) a reference to the chief inspector is reference to the inspector appointed under subsection 14(2); (d) reference in section 56 to― (i) 14 days, is to 21 days; (ii) 3 days, is to 7 days; and (iii) 7 days, is to 14 days. 62F. Restrictions on interests in importer packaged liquor licences (1) A person must not have an interest, directly or indirectly in more than one importer packaged liquor licence. Penalty: (a) 100 penalty units; (b) cancellation of the licence; and (c) disqualification from holding any licence under this Act for a period of 5 years. 10 Liquor (Amendment) 2009 (2) For the purpose of subsection (1) an indirect interest includes― (a) an interest held for or on behalf of a person whether as trustee licensee, lesee or otherwise; and (b) an interest held by a person who is an associate person of a licensee. (3) In this section, “associated person” means— (a) where that person is a natural person, (i) a spouse, former spouse, de facto spouse or domestic partner of either sex, parent, grandparent, child, sibling, or cousin to the third degree; or (ii) a partner, whether or not the partnership is evidenced by a formal agreement; (b) where that person is a company registered in Norfolk Island or elsewhere, a company that is related to that person as a holding company or as a subsidiary and includes all companies that are holding companies or subsidiaries of any company that is so related to that person.”. 19. Section 68 – Allowing minors on licensed premises Omit paragraph 1(b), substitute― “(b) a resident of those premises, in the case of a licence under which accommodation is provided; or (c) in the case of an importer packaged liquor licence— in the company of a responsible adult.”. 20. Section 75 – Importation of liquor prohibited Following paragraph (a), insert― “(aa) as permitted under an importer packaged liquor licence; or”. 11 21. Liquor (Amendment) 2009 Section 99 – Regulations Following paragraph 99(1)(c), insert― “; (d) prescribing ― (i) price-based allocation procedures for allocating eligible applicant status; (ii) conditions applicable to applications for an importer packaged liquor licence; (iii) conditions applying to importer packaged liquor licence; (iv) annual fees for importer packaged liquor licences based upon the value of liquor sales or the quantity of liquor sales or a combination (including the adjustment of fees where paid in advance).”.