THE SALE AND SUPPLY OF ALCOHOL ACT –
WHAT YOU NEED TO KNOW NOW
The Sale and Supply of Alcohol Act was passed on 18 December 2012 and replaces the Sale of Liquor Act 1989.
The new Act introduces changes for licence holders, the holders of managers’ certificates, territorial
authorities, enforcement agencies and the public. The Act has come into force in stages and will be fully in
place from 18 December 2013.
It is absolutely critical that you know and understand what these new law changes are and how it will impact
your business. To help you here is a summary of what you need to know before the new alcohol law is in full
effect from 18 December 2013.
Object
The Object of the Act is that:
(a) The sale, supply, and consumption of alcohol should be undertaken safely and responsibly; and
(b) The harm caused by the excessive or inappropriate consumption of alcohol should be minimised.
District Licensing Committees (DLCs)
District Licensing Agencies are to be replaced by District Licensing Committees (DLCs) on 18 December 2013.
DLCs will be comprised of an elected local Council member and two other members or a Commissioner and will
decide contested and uncontested applications for new or renewed licences, managers’ certificates, temporary
authorities and special licences.
Alcohol Regulatory and Licensing Authority (ARLA)
The Alcohol Regulatory and Licensing Authority (ARLA) replaced the Liquor Licensing Authority (LLA) from 19
December 2012. The ARLA will primarily determine appeals from decisions of DLCs and appeals on Local Alcohol
Policies (LAPs).
Maximum trading hours
National maximum trading hours apply from 18 December 2013:
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8am - 4am for on-licences, this means trading must stop at 4am on the morning of Thursday 19
December 2013
7am - 11pm for off-licences, including over the bar sales
Premises that currently open for longer hours will have to comply with the maximum trading hours from this
date. Premises with shorter hours on their licence will continue to operate to the hours of the licence.
Maximum hours remain in place unless a Local Alcohol Policy is in place and supersedes them.
The hotel mini-bar issue has been resolved and hotel mini-bars will be exempt from the 8am - 4am maximum
trading hours.
Persons are able to be on premises from 6am so long as no alcohol is sold or supplied before licensing hours.
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Promotions
The Act introduces significant change to advertising and promoting alcohol. The following types of promotions
are offences under the new Act:
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Doing anything likely to encourage excessive consumption of alcohol
Offering free alcohol, (unless on premises and cannot be seen or heard off premises), except
complimentary tasting on off-licences.
Offering discounts on alcohol of 25% or more below the price that alcohol is “ordinarily sold” (unless on
premises and cannot be seen or heard off premises)
Offering prizes or other goods or services on condition of alcohol purchase except in loyalty programmes
that are not primarily for alcohol, (unless on premises and cannot be seen or heard off premises).
Promoting alcohol in any way likely to appeal to minors
Grocery stores and supermarkets can only display and promote alcohol in one designated area.
A new National Guidance on Alcohol Promotions for on and off licensed premises are still being
finalised and will available as soon as possible.
Licensing Criteria
The criteria in the new Act for obtaining and renewing a licence is expanded and now includes:
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The object of the Act, i.e. whether the licence is likely to increase alcohol-related harm
The systems, staff, training, design and layout of the premises
The ‘amenity and good order’ of the locality and whether the licence will negatively impact the
community and neighbourhood including current and future levels of noise, nuisance and vandalism
The provisions of a Local Alcohol Policy (LAP) if applicable
All licence applications (including renewals) will need to refer to and address these issues as appropriate as part
of their application.
Licensing Process
The Medical Officer of Health now reports on all licensing applications, as do Police and a licensing Inspector,
and they have 15 working days from notification of the application to report. Anyone else who has a greater
interest than the general public will be able to object on licensing applications. Any public objection must be
based on the expanded licensing criteria. A District Licensing Committee (DLC) can refuse an application even if
no objections or reports in opposition are filed. DLC decisions can be appealed to the ARLA.
General Manager’s certificate holders
From 18 December a number of new provisions for General Manager’s (GM) Certificates commence:
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A person must be 20 years or older to hold a GM certificate
There is no longer a Club Managers certificate - all managers will need to hold the same certificate and
meet the same criteria including the Licensed Controller Qualification (LCQ)
On renewal a current GM Certificate holder must sit an LCQ Bridging Test to include updates for the law
changes
The full name of the manager on duty must be displayed on the premises at all time that the manager is
on duty
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LCQ Bridging Test
An online tool for people who have completed their LCQ training under the Sale of Liquor Act 1989 and are
applying or renewing their General Manager’s Certificate. The LCQ Bridging Test updates LCQ holders who
trained under the Sale of Liquor Act 1989 and tests their knowledge of changes in legal obligations under the
Sale and Supply of Alcohol Act 2012. Full information about the test and requirements is detailed in the LCQ
Bridging Test brochure – click here.
Licence Conditions
From 18 December 2013, on-licences will be required to have:
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A reasonable range of both non and low alcoholic beverages available at all times at reasonable prices
A reasonable range of food available at all times at reasonable prices and within a reasonable time
Drinking water available free of charge
Readily available information about forms of transport from the premises
Any applicable LAP conditions, e.g. one way doors, will apply and a range of other conditions, including one-way
doors, can also be imposed by the DLC or the ARLA.
Local Alcohol Policies (LAPs)
The Act allows territorial authorities to develop local alcohol policies (LAPs), which can come into effect after 18
December 2013. LAPs will be able to:
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Restrict or extend trading hours of premises
Limit the location and density of licences
Limit the location of licences in relation to premises and facilities such as schools
Impose conditions on licensed premises e.g. one way doors
LAPs are optional. A territorial authority cannot adopt a LAP until after 18 December 2013 and after public
notice requirements and any appeals are heard and determined. Any policies in respect of trading hours and
one way doors apply three months after adoption of a LAP.
Off –Licences
The Act has made some changes to the types of premises that can be granted off-licences.
An off-licence can be granted for:
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a supermarket with a floor area of at least 1000 square metres
a grocery store
No off-licence can be granted for:
 a dairy
 a convenience store
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Special Days - Christmas Day, Good Friday, Easter Sunday and up to 1pm Anzac Day
The provisions for sale and supply on the special days remain and are further defined to include the provision of
a timeline of one hour before or after dining.
There is to be no sale or supply of alcohol to anyone (including restaurants) on the Special Days unless:
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They are present for the purposes of dining and it is no more than one hour prior to, or one hour after,
dining
They are residing or lodging on the premises
A special licence is in place
Special Licences
There are now two types of special licence:
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On-site special licence: allows the sale or supply of alcohol to be consumed at the event on premises.
Off-site special licence: allows the sale or supply of alcohol that will be taken away and consumed at
another place.
A special licence can cover a series of events for up to 12 months after it is issued.
A special licence can allow the sale or supply of alcohol at any time, however the District Licensing Committee
(DLC) may set certain hours as a condition of the licence. A council’s LAP may also specify maximum hours for
special licences. The DLC must consider that policy when making decisions about special licence applications.
Applications will be considered under similar criteria as all other licensing applications and there may be
additional criteria for large scale events such as requiring a security plan and other concerns.
The person seeking a special licence must file an application with the local council for the area where the event
will take place. The DLC for that area will consider the application and decide whether to grant the licence. The
DLC may require the person seeking the special licence to publically notify the application. If so, a person who
has a greater interest than the general public (such as someone who lives near the event location) can object to
it.
Applications must be filed at least 20 working days before the event. Weekends, statutory holidays and any
days between 20 December and 15 January are not working days. Applications can be considered in less than 20
working days if the event is unexpected (for example, a funeral). The DLC will decide if the event could have
been foreseen.
The application is initially considered by a licensing inspector, Police and the local medical officer of health. The
DLC will then consider reports from the licensing inspector (and from Police and medical officer of health, if they
submit reports), any public objections and decide whether to grant the licence.
Minors
The alcohol purchase age remains at 18 years.
On a licensed premises:
 Minors are not permitted in a restricted area
 Minors are permitted in a supervised area if accompanied by a parent or guardian
 Minors can only be supplied alcohol by a parent or guardian (who must do so in a responsible manner)
The penalty for selling or supplying alcohol to a person under the purchase age is a fine of up to $2,000.
Licensees or managers can be fined up to $10,000 and will accrue a negative holding. The licence can also be
suspended for up to 7 days.
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Infringement offences for licensees and staff
‘On the spot’ infringement offences for:
Permitting minors in restricted or supervised area
Manager intoxicated on duty
Employee intoxicated on duty
Sales of spirit in vessel exceeding 500mL
Offences in relation to evidence of age documents
Failing to display name of manager on duty
$250
$500
$500
$250
$250
$250
Higher fines and suspensions may also be imposed on separate application to the ARLA (suspensions) or District
Court (fines).
Infringement offences – the public
Buying of alcohol by people under purchase age
Minors in restricted or unaccompanied in supervised areas
Presenting a fake or falsified ID
Using someone else’s ID to buy alcohol
Giving or lending an ID (falsified or genuine) to an underage person
$250
$250
$250
$250
$250
Fines of up to $2000 may be applied on separate conviction by the District Court.
Repeat offending by managers and licensees – 3 strikes
Licences and managers certificates can be cancelled and the holder not able to reapply for five years if the
manager or licensee has committed any of the following specified offences ‘holdings’ three times within three
years:
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Sale or supply to minors
Conducting irresponsible promotions
Sale or supply to intoxicated persons
Sale or supply outside licensed hours
Intoxication
The Act defines Intoxication as being observably affected by alcohol, other drugs, or other substances to such a
degree that two or more of the following are evident:
(a)
(b)
(c)
(d)
Appearance is affected
Behaviour is impaired
Co-ordination is impaired
Speech is impaired
An updated intoxication guideline is now available for your information. Please download this document for you
and your staff to review and use as required.
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Licensing Fees
On 18 December 2013 new fees come into force for licensing applications including renewals after that date.
The new regime aims to recover the costs of the licensing system. Regulations set default licensing fees that
vary depending on the "cost/risk rating" of each type of operation. Territorial authorities will be able to change
the default fees by making their own bylaws, but not to change the way cost/risk ratings are calculated. The
default fees consist of an application fee, which licensees will have to pay when they apply for a new, renewed,
or variation to a licence, and an annual fee, which must be paid by licensees each year. Cost/risk rating will be
determined by a combination of factors including trading hours, type of business and enforcements. Existing
licensees must pay annual fees on the anniversary of the date of issue of the licence, renewal or variation of
their last application. More information about licensing fees can be obtained here.
Closure of premises by Police
Police can order closure of premises for up to 24 hours without warrant where there is reasonable cause to
believe that:
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Fighting or serious disorder is occurring or may occur on the premises
A riot is occurring or may occur on the premises
Where there is a significant threat to public safety
Where conduct on premise amounts to a substantial public nuisance
Where offences with penalties of five years or more are occurring or may occur on the premises
Police powers of entry onto licensed premises are extended to Licensing Inspectors
Hospitality New Zealand Information Resources
For more detailed information on any of the above please refer to the following resources:
10.1
10.3
10.5
10.7
10.8
10.10
10.12
10.15
10.16
10.17
10.18
10.19
10.20
Licensing Visits Rights and Obligations Info Sheet
Christmas Day, Easter and Anzac Day – Sale of Alcohol Restrictions Info Sheet
Checking Identification Info Sheet
Host Responsibility Info Sheet
Appointment of Manager Template
Special Licences
Intoxication and Place of Safety
ARLA Hearing Info Sheet
Host Responsibility Implementation Plan
Licensing Criteria for the Sale and Supply of Alcohol
Staff Training Log
Amenity & Good Order Report & Business Plan
Noise Management Template Plan and Report
These resources are available on your member dashboard on our website at
www.hospitalitynz.org.nz / Member Login / Member Info & Resources / Alcohol Licensing Resources,
or can be obtained by contacting our National Service Centre on 0800 500 503.
Glossary:
ARLA
Alcohol Regulatory and Licensing Authority
DLC District Licensing Committee
LAP
Local Alcohol Policy
LCQ License Controller Qualification
Sale and Supply of Alcohol Act Summary
December 2013