HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

Definitions

1  (1) In this Act:

"auction" means an auction conducted under this Act;

"auction price" means the amount, determined under the auction procedures, that a successful bidder must pay for the right to apply for a special wine store licence;

"auction procedures" means the procedures referred to in section 5 (1);

"general manager's list" means the list of successful bidders that the general manager keeps in accordance with section 7;

"grocery store" means a store that

(a) is primarily engaged in retailing food and non-alcoholic beverages that are specified in the regulations, and

(b) has an area of at least 929 square metres;

"record of unsuccessful bidders" means the record of unsuccessful bidders that the general manager keeps in accordance with section 8;

"special wine store licence" means a licence that authorizes the licensee

(a) to sell wine in respect of which the naturally occurring sugar used in the fermentation process comes from only

(i) plant products grown in British Columbia,

(ii) honey produced from beehives located in British Columbia, or

(iii) milk from animals located in British Columbia,

(b) to sell cider in respect of which the naturally occurring sugar used in the fermentation process comes only from plant products grown in British Columbia,

(c) to sell sake in respect of which the rice used in its production is grown only in British Columbia, and

(d) to sell the wine, cider and sake from any location approved by the general manager within a specified grocery store;

"successful bidder" means a bidder whose bid at an auction is successful as determined under the auction procedures, and includes a bidder who is added to the general manager's list in accordance with section 11.

(2) The definitions in the Liquor Control and Licensing Act apply to this Act.

Auctions

2  (1) The general manager may conduct one or more auctions to receive bids for the right to apply for a special wine store licence.

(2) Bids may be accepted under this Act in respect of only a prescribed number of special wine store licences.

Right to apply for special wine store licence

3  Only a successful bidder on the general manager's list for a specified grocery store may apply under the Liquor Control and Licensing Act for a special wine store licence for that grocery store.

Requirements for bidders

4  The general manager must not accept a bid from a bidder unless

(a) the bidder specifies an existing or proposed grocery store from which wine, cider and sake are intended to be sold,

(b) the bidder submits a deposit in the prescribed amount by certified cheque or in another prescribed form,

(c) the bid is equal to or greater than the minimum bid established by the auction procedures, and

(d) the bidder satisfies any other requirement of the auction procedures.

Auction procedures

5  (1) An auction must be conducted in accordance with procedures established by

(a) the regulations, and

(b) the rules made by the general manager under section 16.

(2) The general manager must post, in advance of an auction, the auction procedures on a publicly accessible website maintained by or on behalf of the minister.

Conduct of auctions

6  (1) The general manager is responsible for the conduct of an auction.

(2) The general manager may enter into agreements authorizing a person or organization that has expertise in conducting auctions to conduct, under the supervision of the general manager, all or a part of an auction.

General manager's list

7  (1) The general manager must keep a list of all successful bidders, together with the grocery store specified in the bid of each successful bidder.

(2) The number of grocery stores specified on the list must not exceed the prescribed number of special wine store licences for which bids may be accepted.

(3) The general manager must substitute, on the list, a different existing or proposed grocery store in respect of a bid of a successful bidder if the successful bidder

(a) submits an application in a form acceptable to the general manager requesting the substitution, and

(b) pays the prescribed fee.

Record of unsuccessful bidders

8  The general manager must keep a record of

(a) all bidders who met the requirements set out in section 4, but were unsuccessful, and

(b) the grocery store specified in each unsuccessful bid.

Payment of auction price

9  No special wine store licence may be issued to a successful bidder on the general manager's list unless the auction price in respect of the bid has been paid within the prescribed time after the bidder has been notified by the general manager that the bidder's application for the special wine store licence has been approved.

Removal from general manager's list

10  The general manager must remove a successful bidder and the grocery store associated with the bid of the successful bidder from the general manager's list in the following circumstances:

(a) the successful bidder has not submitted, within the prescribed time, a complete application or fees under the Liquor Control and Licensing Act for a special wine store licence for that grocery store;

(b) the successful bidder has not paid the auction price in respect of the bid of that successful bidder within the prescribed time after being notified by the general manager that the successful bidder's application for a special wine store licence for that grocery store has been approved;

(c) the successful bidder's application for a special wine store licence for that grocery store is refused under the Liquor Control and Licensing Act;

(d) the successful bidder requests the general manager to do so.

Addition to general manager's list

11  If the general manager removes a successful bidder from the general manager's list, the general manager must add to the general manager's list the bidder on the record of unsuccessful bidders having the highest priority, as determined under the auction procedures, together with the grocery store specified in the bid of that bidder.

Forfeiture of deposit

12  Subject to any prescribed exceptions, the deposit of a successful bidder submitted in respect of a grocery store is forfeited to the government if the bidder and grocery store are removed from the general manager's list.

Return of deposit

13  (1) The general manager must return a deposit submitted by a bidder in respect of a grocery store if

(a) the bidder is on the record of unsuccessful bidders and has requested the return of the deposit, or

(b) the bidder is on the record of unsuccessful bidders and the prescribed number of special wine store licences have been issued.

(2) If a deposit is returned to an unsuccessful bidder under subsection (1) (a), the general manager must remove the bidder and the grocery store from the record of unsuccessful bidders and the unsuccessful bidder may no longer be added to the general manager's list in respect of that bid.

Offence Act

14  Section 5 of the Offence Act does not apply to this Act or the regulations.

Power to make regulations

15  (1) The Lieutenant Governor in Council may make regulations referred to in section 41 of the Interpretation Act.

(2) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations as follows:

(a) prescribing the number of special wine store licences in respect of which bids may be accepted under this Act;

(b) specifying the types of food and non-alcoholic beverages for the purposes of the definition of "grocery store";

(c) prescribing the amount of deposits submitted under section 4 (b);

(d) respecting the additional forms of deposits that may be submitted under section 4 (b);

(e) prescribing the fee referred to in section 7 (3) (b);

(f) respecting procedures for the conduct of an auction, including

(i) how to determine successful bids,

(ii) how to calculate the amount that a successful bidder must pay for the right to apply for a special wine store licence,

(iii) how to determine the priority of unsuccessful bidders on the record of unsuccessful bidders, and

(iv) any contractual rights or obligations of the government or a bidder arising on acceptance of a bid at the auction;

(g) prescribing the time periods for the purposes of sections 9 and 10 (a) and (b);

(h) providing for exceptions to the forfeiture of deposits under section 12;

(i) remedying any difficulty encountered in the conduct of an auction or in the administration of this Act.

Power to make rules

16  The general manager may make rules respecting procedures for the conduct of an auction, including

(a) how to determine successful bids,

(b) how to calculate the amount that a successful bidder must pay for the right to apply for a special wine store licence,

(c) how to determine the priority of unsuccessful bidders on the record of unsuccessful bidders, and

(d) any contractual rights or obligations of the government or a bidder arising on acceptance of a bid at the auction.

Regulations prevail

17  If there is any conflict between the rules made by the general manager and the regulations, the regulations prevail.

Related Amendment

Liquor Control and Licensing Act

18 Section 16 of the Liquor Control and Licensing Act, R.S.B.C. 1996, c. 267, is amended by adding the following subsection:

(2.3) The requirements of subsection (1) (b) and (c) do not apply to a prescribed class of licence.

Repeal by regulation

19  This Act may be repealed by regulation of the Lieutenant Governor in Council.

Commencement

20  This Act comes into force by regulation of the Lieutenant Governor in Council.

 
Explanatory Note

This Bill authorizes the general manager to conduct auctions for the right to apply for special wine store licences to be issued under the Liquor Control and Licensing Act and sets out the framework for the conduct of the auctions. These licences will authorize the sale, from locations approved by the general manager within specified grocery stores, of wine, cider and sake made from British Columbia agricultural products. Only a prescribed number of these licences will be issued.

This Bill also amends the Liquor Control and Licensing Act to allow for regulations exempting certain classes of licences from the requirement that licensees own the business carried on at the establishment and that licensees own or lease the establishment.