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This manual is intended to assist District Licensing Committee secretariats and reporting agencies (Police, Medical Officers of Health and territorial authority Alcohol Licensing Inspectors) with the process of receiving and determining off-licence applications under the Sale and Supply of Alcohol Act 2012 (the Act).

It is intended to supplement existing guidance and provide practical assistance. It is not intended as a substitute for legal advice. While this manual sets out general guidance, practices may vary between regions. This advice covers new applications, renewals and variations for off-licences. It does not relate to club licences, special licences or on-licences.

Disclaimer

The information contained in this online guide is intended as a general guide.

While reasonable measures have been taken to ensure that the information is current and accurate as at October 2018, Te Whatu Ora - Health New Zealand cannot accept any liability for any inaccuracy, omission or deficiency in relation to the information. It is not legal advice and you should not rely on anything contained in this guide in any legal proceedings. The information provided does not replace or alter the laws of New Zealand, and you should consult the legislation and obtain your own legal and professional advice, as appropriate. Te Whatu Ora will not accept liability for any action taken in reliance on anything contained in this online guide.

About off-licences

An off-licence applies to a premises where the licensee can sell alcohol for consumption elsewhere.

The licensee can also supply alcohol free, as a sample, for consumption on the premises while the premises is open for the sale of alcohol.

The licensee may sell alcohol on or from the licensed premises and deliver it elsewhere (sale for delivery), or arrange for their distributor, importer, manufacturer or wholesaler of alcohol to deliver from its own premises on the licensee's behalf. These deliveries will be treated as having come from the premises that the licence is issued for.

An off-licence can have an endorsement for:

  • Auctioneers
  • Remote sellers

An applicant for an off-licence who holds an auctioneer's licence under the Auctioneers Act 2013 can request an endorsement to sell alcohol by auction in the course of their business as an auctioneer. The applicant needs to request the licence be endorsed at the time of application.

The notification requirements (s.101), objections to applications (s.102) and enquiries into the application by the police and Medical Officer of Health (s.103) do not apply to the application when the applicant has sought this endorsement.

If the auctioneer's endorsement is granted, the licensee is not required to appoint a manager (s.212), or display signs (s.56) and licence details (s.57).

An applicant for an off-licence who only plans to sell alcohol from (not on) the premises for delivery elsewhere can request an endorsement for remote sales (s.40).

While remote sales can be made 24 hours a day, 365 days a year, the alcohol sold by remote sale cannot be delivered to the buyer (or any other person on the buyer's behalf) on Good Friday, Christmas Day, Easter Sunday (unless it meets limited criteria), between 12.01am and 1pm on ANZAC Day, and at any time after 11pm on any day and before 6am on the next day (ss.48, 49 and 59(1)).

If the remote sales endorsement is granted, the licensee is not subject to the usual obligations around the display signs (s.56) and licence details (s.57).

However, every remote seller of alcohol (regardless of how it is sold) must print the licence holder’s name, licence number and expiry date on every receipt issued for alcohol sold remotely. 

For remote sales by catalogue, this information must be published in the catalogue, and for remote sales by internet, this information must be displayed in a prominent place visible when people browse, enter, or otherwise access the website, together with a legible image of the licence (or a clearly identified link to such an image). 

Assessing the type of business sought to be licensed and Licensee responsibilities relating to remote sales

Assessing the type of business sought to be licensed
Does the applicant engage or propose to engage in the sale of goods other than alcohol and food, and if so, which goods?

Does the applicant engage or propose to engage in the provision of services other than those directly related to the sale of alcohol, and if so, which services?

These considerations overlap with those that determine whether a premises qualifies for an off-licence.

Licensee responsibilities relating to remote sales
The licensee of an off-licence endorsed for remote sales must take responsibility for the following: 

Ensuring deliveries are made during permitted hours only

Verifying the age of the buyer and receiver
Take reasonable steps to verify that the buyer of any alcohol, and if a person other than the buyer is to receive it, to verify that the receiver, is not under the purchase age.  Regulation 14 sets out what constitutes reasonable steps for the following forms of remote sales.
 

Internet sales: If alcohol is being sold via the Internet, the licensee must ask, and the prospective buyer must declare, by ticking an on-screen box, that he or she, and, if applicable, the receiver, is 18 years of age or over. This must be done once when the buyer first enters the site, and again immediately before the sale is completed (Regulation 14).

Mail order sales: If alcohol is being sold by mail order, the mail order form must:

  • require the buyer to sign the form at a place at or near its end
  • contain a request at the beginning of the form and another request immediately before the place where the buyer is required to sign, that the prospective buyer declare, by ticking a box, that he or she, and, if applicable, the receiver, is 18 years of age or over.

Note, the prospective buyer must tick both boxes and sign the form before the alcohol is sold.

Telephone sales: If alcohol is being sold by telephone, the licensee must ask, and the prospective buyer must declare orally that he or she, and, if applicable, the receiver, is 18 years of age or over. This must be done at the start of the conversation and again, immediately before the conversation is completed.

An off-licence may only be issued to:

  • The holder of an on-licence issued for a hotel or tavern, for the premises (or part thereof) for which the on-licence is held.
  • Non-retail premises where at least 85% of the annual income of the person to whom the off-licence is to be issued, is expected to be earned from the remote sale of alcohol*.
  • Retail premises where at least 85% of the annual sales revenue is expected to be earned from the sale of alcohol for consumption elsewhere*.
  • Premises where the principal business is the manufacture of alcohol*.
  • A supermarket with a floor area of at least 1,000 m2 (including any separate departments set aside for such foodstuffs as fresh meat, fresh produce and delicatessen items)*.
  • A grocery store (as defined in s.33)*.

(* means in the opinion of the District Licensing Committee or ARLA)

There cannot be an off-licence issued for the same premises as a restaurant holding an on-licence or for the proscribed premises listed in s.36.

Exception for areas where some licensed premises not economic

An off-licence may be issued to a premises not listed above if the District Licensing Committee/ARLA is satisfied that, in the area where the premises is situated, the sale of alcohol in premises of a kind listed in the last four bullet points above would not be economic, and that the granting of the off-licence would not cause any significant increase in alcohol-related harm (s.34).

An off-licence must not be issued for:

  • petrol stations
  • garages (where the principal business is the repair and servicing of motor vehicles and the sale of automotive fuels)
  • dairies
  • convenience stores
  • conveyances
  • shops within shops
  • premises that can be reached by the public directly from a shop, petrol station or garage.

Application process

In brief:

  • Completed applications, in the prescribed form, are sent to the relevant District Licensing Committee for processing.
  • Enquiries are made into each application by the Licensing Inspector, Police and Medical Officer of Health (or the MOH's s.151 delegate). The Police and the Medical Officer of Health must enquire into every application but must only submit a report to the District Licensing Committee if they have any opposition.
  • The Licensing Inspector must enquire into, and file a report with the District Licensing Committee on every application. Typically the Inspector collates the reports from each agency (where applicable) and submits a report to the District Licensing Committee providing an assessment of the application criteria and a summary of the views of the Police and the Medical Officer of Health.
  • The District Licensing Committee makes a determination, which could be on the papers or at a public hearing. This can be appealed to the Alcohol Regulatory and Licensing Authority, and subsequently to the High Court.

Process map/Alcohol Licensing Flowchart (PDF download)

An applicant must meet the legal requirements for holding a licence, as presented in s.28 [Who can hold on-licences, off-licences, and special licences]. The licence must also be considered in accordance with the factors set out in s.105 and 106 [Criteria for issue of licences].

Police, Medical Officers of Health (and their delegates), and Licensing Inspectors should all be familiar with s.105 and 106. These criteria provide the basis on which a licence is granted and signal to applicants and regulatory agencies the types of issues being addressed through licence enquiries.

When writing any report, making any decision, and writing any decision, District Licensing Committees and reporting agencies involved in the administration of the Act must ask themselves the following four questions:

  1. Is my report, proposed action, proposed decision for the benefit of the community as a whole (that is the community that will be affected by the application) – in accordance with s.3(1)?
  2. Will it help to achieve the safe and responsible sale, supply, and consumption of alcohol – in accordance with sections 3(1)(b) and 3(2)(b) and 4(1)(a)?
  3. Will it help to achieve the minimisation of alcohol-related harm – in accordance with sections 3(1)(b) and 3(2)(b) and 4(1)(b)?  [alcohol-related harm is defined in s.5 and is the same as s.4(2)(a) and (b)]
  4. Is it reasonable? In accordance with s.3(2)(a)?

The answers must all be affirmative as the Act must be administered consistently with its purpose and object.

Refer to R S DHILLON LIMITED [2013] NZARLA PH 920 (PDF download)

This was the first ARLA case that considered s.105.  See in particular the Authority guidance in paragraphs [28]-[54].

The application

The form of application is prescribed in the Regulations: Form 4 – Application for off-licence or renewal of off-licence.

At a local level, territorial authorities may add extra requirements for the applicant eg, additional Host Responsibility questions.

On receiving an application for licence, there is an initial check for completeness before the details are entered into a document management system.

Off-licence applications must contain the following:

  • A signed application form. This form should be signed by the applicant or on-behalf of the applicant, by an authorised person such as the director of a company.A signed application form. This form should be signed by the applicant or on-behalf of the applicant, by an authorised person such as the director of a company.
  • The prescribed fee.  
  • Prescribed information about the applicant, premises, managers, business details and conditions (see Form 3), including evidence that the applicant can hold a licence to sell alcohol under the Act.  
  • A floor plan of the premises clearly showing the area to be licensed, the principal entrance, and any area to be designated as a supervised or restricted area, and for supermarkets and grocery stores showing the proposed/actual single alcohol area.  
  • A statement regarding compliance with fire safety standards.  
  • For a body corporate applicant, copy of certificate of incorporation (or equivalent document).
  • A Natural and Built Environment Act (NABEA) certificate and a building code certificate.  
  • For grocery stores – the statement of annual sales revenue required by Regulations 12 or 13.  
  • Other relevant information that may be asked for, depending on the territorial authority (to assist in assessing relevant s105 criteria):
    • Details of relevant experience of applicant/directors etc.
    • Host responsibility policy and host responsibility implementation plan.CPTED checklist.
    • Proposed employee training manuals/logs/induction/terms of employment policies.Any business plan.
    • Photos/artist impressions of the premises.
    • A scale plan showing the design and layout.
    • Map of the location.
    • Detail of any other on-premises activity eg, sales of other products.
    • Statement dealing with the impact or otherwise on the amenity and good order of the locality.
    • What their policy/proposal is relating to single bottle sales (especially of mainstream beer, and for bottle stores - RTDs).

Application sent for enquiry

The Secretary of the District Licensing Committee must send a copy of a completed application, including any documents filed with it, to the Police, Medical Officer of Health and Licensing Inspector for checking.

Enquiry reporting times

The Police or the Medical Officer of Health must report any matters in opposition to the application within 15 days from the date they receive the application. The Licensing Inspector must report within a reasonable timeframe.

Who does this?

  • Licensing Inspector (compulsory).
  • Police (only required if opposing application).
  • Medical Officer of Health (only required if opposing application).

Hints and tips
Build rapport with the District Licensing Committee and your partner agencies by acknowledging receipt of an application and confirming the date when oppositions must be sent by.
Keep lines of communication open between the District Licensing Committee and reporting agencies to ensure everyone is working to the same timeframes and expectations. Reporting Agencies have a duty to collaborate by establishing and maintaining arrangements with each other to ensure ongoing monitoring and enforcement, and by working together to develop and implement strategies to reduce alcohol-related harm.
It is good practice for the Police and Medical Officer of Health to send a response to every application, including ‘no opposition’ where appropriate.

An off-licence may only be issued to:

  • The holder of an on-licence issued for a hotel or tavern, for the premises (or part thereof) for which the on-licence is held.
  • Non-retail premises where at least 85% of the annual income of the person to whom the off-licence is to be issued, is expected to be earned from the remote sale of alcohol*.
  • Retail premises where at least 85% of the annual sales revenue is expected to be earned from the sale of alcohol for consumption elsewhere*.
  • Premises where the principal business is the manufacture of alcohol*.
  • A supermarket with a floor area of at least 1,000 m2 (including any separate departments set aside for such foodstuffs as fresh meat, fresh produce and delicatessen items)*.
  • A grocery store (as defined in s.33)*.

(* means in the opinion of the District Licensing Committee or ARLA)

There cannot be an off-licence issued for the same premises as a restaurant holding an on-licence or for the proscribed premises listed in s.36.

Exception for areas where some licensed premises not economic

An off-licence may be issued to a premises not listed above if the District Licensing Committee/ARLA is satisfied that, in the area where the premises is situated, the sale of alcohol in premises of a kind listed in the last four bullet points above would not be economic, and that the granting of the off-licence would not cause any significant increase in alcohol-related harm (s.34).

An off-licence must not be issued for:

  • petrol stations
  • garages (where the principal business is the repair and servicing of motor vehicles and the sale of automotive fuels)
  • dairies
  • convenience stores
  • conveyances
  • shops within shops
  • premises that can be reached by the public directly from a shop, petrol station or garage.

In forming an opinion about whether any premises is a grocery store, the District Licensing Committee/ARLA must have regard to:

  • the size, layout, and appearance of the premises
  • the annual sales revenue (or projected annual sales revenue) of the premises (see below)
  • the number, range and kinds of items on sale (or expected to be on sale) on the premises.

The District Licensing Committee may have regard to any other matters it thinks relevant, and may determine that the premises and the items on sale do not have the characteristics normally associated with a grocery shop.

The principal business must be the sale of food products. This is defined in the Sale and Supply of Alcohol Regulations 2013.

Hints and tips

Typically, a grocery store means a shop that primarily sells a range of food products (excluding ready-to-eat or snack food) but may also sell other household items (See relevant definitions in the Act and Regulations).

What  is meant by complementary sales?

The District Licensing Committee/ARLA can issue an off-licence for a shop where the principal business carried on is not the sale of food, if the sale of alcohol may be considered complementary to the goods that are being sold. For example: a florist selling wine in a gift basket (s.35).

Confirm the accounts are certified

A statement of sales revenue for the last 12 months must be submitted. The statement period must end no more than 90 days prior to the application date, for the issue or renewal of an off-licence for the premises (Regulation 6 for grocery stores/ Regulation 12). This statement must be from a chartered accountant and must verify the figures given as correct according to prepared accounts.

If business on the premises has been carried on for less than 12 months, or has changed materially during the 12 months prior to the application being made, a statement of the projected sales revenue for 12 months after the application must be submitted (Regulation 7 for grocery stores/ Regulation 13).

Deduction of all revenue from sales of lottery tickets etc must be made and then a statement issued assigning the remainder of that (projected) revenue to:

  • food products
  • alcohol
  • tobacco
  • convenience foods
  • other sources of revenue (such as travel cards etc).

Do the plans adequately define the licensed premises?

  • Carefully inspect the plan. Applications sometimes include areas that the applicant is not entitled to include eg, part of a public place. 

Does the plan adequately and clearly show any designated areas?

  • For example - alcohol sales must be limited to a single exclusion area in supermarkets and grocery stores.

Does the plan identify the principal entrance/s?

Does the plan adequately and clearly show any designated areas or single alcohol area (see below)?

Who does this?

Licensing Inspector.

In supermarkets and grocery stores, the display and promotion of alcohol is limited to a single area. This is to limit shopper exposure to alcohol. This is imposed as a condition by the District Licensing Committee when a licence is issued or renewed.

Plans must show:

  • the (proposed) configuration and arrangement of the premises
  • the perimeter of the area (or each sub-area if the area is divided into 2-3 sub areas, including the entrance, checkouts and main body of the store).

If the area is being subdivided, the District Licensing Committee must designate one sub-area as the primary area and the other as the secondary area. If the area is divided into three, then the third area must be designated as the overflow area.

The District Licensing Committee must ensure the area is not in the most direct pedestrian route between either any entrance and the main body of the premises or the main body of the premises and any general point of sale (check-out).

Hints and tips

The following is not considered to be promotion of alcohol:

  • A sign (consistent with store signage) giving directions to or describing the location of the alcohol area.
  • A newspaper, magazine or catalogue containing a promotion or advertisement for alcohol.

Confirm tenure of premises

Does the applicant own the premises?

  • In the application form the applicant is required to state whether he or she owns the proposed premises.

If the applicant is not the owner, he or she:

  • may provide written consent from the legal owner to licence the premises
  • must state the form and length of tenure, and provide the full legal name and address of the owner. Tenure can take many forms including leases, assigned leases, sub-leases and rental agreements. Some territorial authorities may ask for evidence of the tenure (eg, lease agreement).

Does the applicant have proper tenure for all the areas sought to be licensed?

  • For example street trading, common areas, Queen’s chain, areas subject to a covenant given in order to develop a whole complex by way of resource consent. This consent may be different to the s.100(f) certificate tended with the application.
  • Refer to the submitted plans to see if any of the points above are included in the areas sought to be licensed. If so, ensure an appropriate consent is attached.

Who does this?
Licensing Inspector.

Check evidence of compliance with fire safety standards

Confirm the fire declaration states that the owner provides and maintains an evacuation scheme, or that the owner is not required to do so because of the building's current use, or that the owner is exempt from doing so because of the nature of the building.

Who does this?
Licensing Inspector.

The applicant

Does the applicant meet any of the following?

  • A person of at least 20 years of age.
  • Any company within the meaning of the Companies Act 1993 that is not prevented by restriction in its constitution from selling alcohol or holding a licence*.
  • Any body corporate. A certificate of incorporation or documentary evidence of incorporation must be provided.
  • A board, organisation or other body that is authorised by another enactment to sell alcohol or hold a licence under this Act*.
  • A licensing trust or community trust.
  • A registered limited partnership that is not prevented by restriction in its partnership agreement from selling alcohol or holding a licence*.
  • A partnership comprising members of any of the types set out above.
  • A Government department or other instrument of the Crown.
  • A territorial authority, whether or not expressly authorised by any other enactment to hold an off-licence under the Act.
  • A trustee within the meaning of the Trustee Act 1956. As a rule, a private trust cannot hold a licence in the name of the trust ie, the Smith Family Trust cannot hold a licence. The licence must be held personally by one of the trustees on behalf of the trust.
  • A manager acting for any person pursuant to a property order, if the order authorises the manager to sell alcohol or hold a licence*.

* includes any restriction on holding a licence or licences of the kind/s sought

Hints and tips

If the applicant is a company, carry out a Companies Office check (and potentially check the Personal Property Securities Register).

Who does this?

Licensing Inspector and Police.

Suitability may be established by considering a range of factors. Each agency will consider specific areas of an applicant’s suitability, as set out in the table below (note this is not an exhaustive list of factors, and the roles allocated are indicative only).

Licensing Inspector Police Health  
* * *

Previous experience

Check for previous experience in the operation of licensed premises or in the hospitality industry. If they do not have experience, check to see if they have an experienced general manager or experience in other businesses.
  *  

Previous convictions

Vet the applicant, all directors, shareholders and others associated with the application, using the National Intelligence Application (NIA).

Note: ARLA has set some guidelines in relation to convictions (G L Osbourne decision 2388/95).

  • A five-year period of no offending for serious convictions either involving alcohol or arising in the course of the applicant’s duty on a licensed premises.
  • A minimum of two years free from conviction for any minor convictions or single conviction not disclosing a pattern of offending.
These are guidelines only and were applied in the context of an application for a manager's certificate. For a licensee, previous convictions are relevant but are merely one of the factors to take into account when determining suitability.
* * *

Character and reputation

  • Intelligence on character and reputation can come from any source, including public objectors.
  • Character and reputation can be gauged if the applicant is holds a temporary authority prior to obtaining his or her off-licence. This gives the regulatory agencies an opportunity to view the licensee in action.
  • Reporting on character and reputation allows the regulatory agencies to look beyond previous convictions. This may involve checks on associates and investigating links to groups that may be unsuitable ie, gangs or organised criminal groups.
* * *

Training and qualifications

  • Check the applicant has the appropriate systems, staff and training to comply with the law.
  • Copies of any relevant qualifications and certificates should accompany the application or be sought.
  • Ensure the applicant has the appropriate staff training in place, you may want to ask for training manuals or logs.
* * *

Knowledge of the Sale and Supply of Alcohol Act

If there is any doubt about the validity or value of the qualifications supplied, the Licensing Inspector will meet with the applicant to quiz them on their knowledge.

* *  

Previous unlawful operation of premises

  • Certain breaches of the Act will result in a ‘holding’ against the licence. A holding is an adverse finding in an ARLA hearing. If there are three such holdings within three years then the licence can be cancelled for five years.
  • Offences and breaches of the Act that will generate a holding are held electronically in a central repository managed by ARLA and accessible by Police and Licensing Inspectors.
* * *

Maturity of applicant

An individual must be at least 20-years-old to apply for a licence, but some 20-year-olds are more mature than others. The real issue is whether you believe the applicant is capable of running and controlling the proposed licensed premises.

* * *

Breach of any undertaking

An undertaking is a promise offered by a licensee in order to allow the granting of a licence, where some doubt over suitability may be cast. If this undertaking or promise is broken, it will have a significant impact on the applicant’s suitability.
* * * Any of the above in relation to other people involved in the application.
* * *

Can the applicant prove how income is derived or where the purchase money has been sourced?

  • Check that the applicant is not fronting the premises for possible unsuitable persons.
  • You may require the applicant to provide some specific documentary evidence to ensure that the business is theirs.
  • Most applicants will willingly respond to such enquiries. If they become defensive and start citing issues of commercial sensitivity, then further investigation may be required.

 

Hints and tips

Document and keep a complete record of all enquiries as this may later need to be used in evidence.

Assessing the type of business sought to be licensed

Does the applicant engage or propose to engage in the sale of goods other than alcohol and food, and if so, which goods?

Does the applicant engage or propose to engage in the provision of services other than those directly related to the sale of alcohol, and if so, which services?

These considerations overlap with those that determine whether a premises qualifies for an off-licence.

Licensee responsibilities relating to remote sales

The licensee of an off-licence endorsed for remote sales must take responsibility for the following:

Ensuring deliveries are made during permitted hours only
 
Verifying the age of the buyer and receiver

Take reasonable steps to verify that the buyer of any alcohol, and if a person other than the buyer is to receive it, to verify that the receiver, is not under the purchase age.  Regulation 14 sets out what constitutes reasonable steps for the following forms of remote sales.
 

Internet sales: If alcohol is being sold via the Internet, the licensee must ask, and the prospective buyer must declare, by ticking an on-screen box, that he or she, and, if applicable, the receiver, is 18 years of age or over. This must be done once when the buyer first enters the site, and again immediately before the sale is completed (Regulation 14).

Mail order sales: If alcohol is being sold by mail order, the mail order form must:

  • require the buyer to sign the form at a place at or near its end
  • contain a request at the beginning of the form and another request immediately before the place where the buyer is required to sign, that the prospective buyer declare, by ticking a box, that he or she, and, if applicable, the receiver, is 18 years of age or over.

Note, the prospective buyer must tick both boxes and sign the form before the alcohol is sold.

Telephone sales: If alcohol is being sold by telephone, the licensee must ask, and the prospective buyer must declare orally that he or she, and, if applicable, the receiver, is 18 years of age or over. This must be done at the start of the conversation and again, immediately before the conversation is completed.

Where an off-licence is issued with a single alcohol area, the licensee must ensure that for the single area:

  • no display, promotion, or advertisement for alcohol occurs on the premises at any place outside the alcohol area
  • no reconfiguration or rearrangement of the layout occurs so that the alcohol area contains any area through which the most direct pedestrian route passes between either the main body of the premises and any entrances or between the main body of the premises and any general points of sale (check-outs)
  • there is no display, promotion or advertising of products (except for low or non-alcoholic beer, wine or mead) that are not alcohol within the alcohol area 

Licensee Host Responsibility

Are the steps to be taken in relation to minors and intoxicated customers adequate?

Is the applicant currently operating under a temporary authority?

Police, Licensing Inspectors and Medical Officers of Health should note any incidences of non-compliance that may have occurred during the period of the temporary authority.

Trading, site visits, and more

This section looks at ensuring the off-licence aligns with any policies or regulations that may place restrictions on the trading hours for a licence.

Trading days and hours

Are there any restrictions on hours imposed by resource consent or a Local Alcohol Policy (LAP), or has an undertaking been made in relation to days and hours of trade?

Territorial authorities may have an operational LAP. Check with your District Licensing Committee to see if a LAP is in place and, if so, what conditions the LAP permits.

Who does this?
Licensing Inspector and Police.

Trading hour restrictions

Have the statutory conditions in s.48 been applied to the licence?

  • No alcohol is sold on or delivered from the premises on Good Friday, Christmas Day, or before 1pm on Anzac Day.
  • No alcohol is sold on or delivered from the premises at any time on Easter Sunday unless it is grape wine, or fruit or vegetable wine, made on the premises or made from produce harvested from the land on which the premises are situated.
  • Different provisions apply to off-licences endorsed for remote sellers.

Other legislation

Is there any other legislation that may prevent the granting of this application?

  • A Plan sets out policies and rules on the use, development and protection of land and natural resources in line with the NABEA, eg operating a tavern in a trust area, park, reserve or on Department of Conservation land.

Is the amenity and good order of the locality likely to be reduced, by more than a minor extent, by the effects of the issue of the licence?

  • This means the extent to which the locality in which the premises concerned is situated, is pleasant and agreeable. This is a subjective view and guidance will be derived from case law.
  • Regard must be had to current and possible future levels of noise, nuisance and vandalism; the number of existing premises that hold off-licences in the locality; and the extent to which the purposes for which land near the premises concerned is used are compatible with the purposes for which those premises will be used if the licence is issued.

Is the amenity and good order of the locality already so badly affected by the effects of the current licences in the area that:

  • the issue of this licence would be unlikely to reduce the amenity and good order of the locality further (or would be likely to reduce it further to only a minor extent); but it is nevertheless desirable not to issue any further licences?

This is also subjective and requires an assessment of the effect (if any) of the premises already located in the area.

For a renewal, the question is whether the amenity and good order of the locality is likely to be increased, by more than a minor extent, by the effects of a refusal to renew the licence.

 

Hints and tips

Refer to R S DHILLON LIMITED [2013] NZARLA PH 920

Refer to Re Venus NZ Ltd [2015] NZHC 1377, [2015] NZAR 1315

Who does this?

Licensing Inspector. Medical Officer of Health. Police

The Licensing Inspector may conduct an initial inspection to ensure that:

  • all signage is in place
  • all staff are appropriately trained
  • a certificated manager is well versed with the running of the premises
  • a Host Responsibility policy and implementation plan are in place
  • a CPTED assessment may also be carried out at this time and any issues can be raised
  • (for existing premises) that they are operating in accordance with their licence conditions, any undertakings, and the Act


Who does this?

Licensing Inspector, Medical Officer of Health and Police.

The following conditions are compulsory:

  • Stating the days and hours during which alcohol may be sold or delivered (s.116(2)).
  • Stating the fees payable for licensing the premises (s.116(2)).
  • Stating (directly or by description) a place or places on the premises at which drinking water is freely available to customers, while alcohol is being supplied free as a sample on the premises (s116(2)).
  • For supermarkets and grocery stores - designating single alcohol area relating to the display and promotion of alcohol (s.112).

The following conditions are discretionary (s.116(1)):

  • Prescribing steps to be taken by the licensee to ensure that the provisions of the Act relating to the sale of alcohol to prohibited persons are observed.
  • Prescribing the people or kinds of person to whom alcohol may be sold or supplied.
  • Where the principal business is not the manufacture or sale of alcohol, conditions relating to the kind or kinds of alcohol that may be sold on or delivered from the premises.

The District Licensing Committee/ARLA may also impose any other reasonable condition that is not inconsistent with the Act (s.117).

Undertakings

  • It may be more appropriate to request the applicant provide an undertaking to address any specific concerns around alcohol-related harm e.g. no single sales of alcohol under $7 a unit.
  • This should be noted on the bottom of the licence as ‘An undertaking applies to this licence’.

Key definitions from the Act

  • s.5 Alcohol-related harm, amenity and good order of the locality, licence, manager, permitted trading hours, premises, principal business, principal entrance, public notice, remote sale, restricted area, supervised area, tavern
  • s.17 Off-licences: sale and supply on licensed premises
  • s.18 Off-licences: sale for delivery and sales at distance
  • s.19 Off-licences: direct delivery of alcohol, by arrangement with holder, by distributor, importer, manufacturer or wholesaler
  • s.20 Off-licences: auctioneers
  • s.33 Determining whether premises are grocery store (including related definitions)
  • s.39 Off-licences for auctioneers
  • s.40 Off-licences for remote sellers of alcohol
  • s.112(2) Single-area definition

Key sections of the Act (in addition to those above)

  • s.3 Purpose of Act
  • s.4 Object of Act
  • s.28 Who can hold on­licences, off­licences, and special licences
  • s.32 Kinds of premises for which off-licences may be issued
  • s.34 Exception for certain areas where some licensed premises not economic
  • s.35 Exception for certain complementary sales
  • s.36 No off-licences for petrol stations, certain garages, dairies, convenience stores, conveyances, or shops within shops
  • ss.43-45 Permitted trading hours
  • s.46 No sale or supply outside permitted trading hours: all licences
  • s.48 Sale on Anzac Day morning, Good Friday, Easter Sunday and Christmas Day restricted: off-licences
  • s.49 Remote sales exempted from trading hours restrictions
  • ss.56-57 Display of signs and licence
  • s.58 Restriction on kinds of alcohol sold in supermarkets and grocery shops, and premises directly accessible from them
  • s.59 Requirements relating to remote sales by holders of off-licences
  • s.100 Form of application
  • s.103 Police, Medical Officer of Health, and Inspector must inquire into applications
  • s.105 Criteria for issue of licences
  • s.106 Considering effects of issue or renewal of licence on amenity and good order of locality
  • s.112 Compulsory conditions relating to display and promotion of alcohol in single area in supermarkets and grocery stores
  • s.113 Describing alcohol areas
  • s.114 Effect of single-area conditions
  • s.115 Application of single-area conditions can be delayed for some renewals
  • s.116 Particular discretionary conditions, and other compulsory conditions: off-licence
  • s.119 Restricted and supervised areas
  • s.120 Variation of conditions
  • s.126 Renewal of licence held by auctioneer
  • s.127 Application for renewal of licence
  • s.131 Criteria for renewal
  • s.280 Variation, suspension or cancellation of licences other than special licences

Note also Regulations 6-15 of the Sale and Supply of Alcohol Regulations 2013

Key forms

Form 4. Application for off-licence or renewal of off-licence.

Renewals

  • Check the licensee's trading history. Have there been any complaints?
  • Have any inspections resulted in verbal or written warnings?
  • Have there been any breaches of licence conditions, undertakings or the Act?
  • Have there been any noise or nuisance complaints to local authority during past trading?
  • Check if the applicant has complied with requirements for the display and promotion of alcohol. 
  • Check that the applicant continues to qualify for the licence endorsement as an auctioneer if applicable (s.126)

Who does this?

Licensing Inspector. Police.

Since the current licence was issued, does the applicant have any new convictions, or have any significant other issues regarding the management of the premises arisen?

  • If there have been issues involving the management of the premises, raise these in the report.
  • Check the National Intelligence Application (NIA). Report any new convictions since the current licence was issued. If there are any new serious or relevant convictions consider opposing the application for renewal.
  • If a renewal is opposed based on new convictions, consider lodging an application pursuant to s.280 for the cancellation of the licence.
  • If at any time you become aware that a licensee has been charged with or convicted of any serious offence, consider lodging an enforcement application pursuant to s.280 immediately.

Who does this?

Police.

If you disagree with any proposed variation(s), you should state your opposition in your report. You may wish to take a stance in relation to the appropriate condition/s to be applied to the licence.

Hours/days of operation

  • Some licensees may wish to extend their hours. This is something that the Licensing Inspector will address following consultation with the other regulatory agencies. Any request for an extension of hours must be considered in the context of any inconsistencies between the conditions as proposed and any relevant LAP or NABEA requirements. An application to extend the hours of operation may also require new resource consent.

Variation to premises

  • Sometimes changes to the premises may be proposed, ongoing or completed.  The premises may be renovated or extended.  Depending on the nature of the changes, a building certificate may be required and new plans required.  If there is a change in the nature of the operation, a new resource consent certificate may also be required and other provisions in the Act may be triggered.

Designations

  • Sometimes removal of designation or re-designation of a restricted or supervised area is sought in an application for renewal. lf the removal of a designation is sought, think about how this might impact on the ability of the licensee to prevent the sale of alcohol to minors. You should look at what steps the licensee has put in place to ensure that alcohol is not sold or supplied to minors.
  • If you disagree with the proposed situation around any designation, this could be a matter for opposition. In the opposition you may wish to take a stance in relation to the proper designation to be applied to an area or premises.

Supermarkets and Grocery Stores

  • Check if the applicant’s existing or proposed new configuration of the premises meets the requirements of the Act. (Link to ‘Ensure there is a single alcohol area…’. Page 8)
  • A new single-area condition may be imposed on the renewal of an off-licence that is either not subject to a single-area condition or is subject to a single-area condition that is materially different from what is sought.  If this occurs, the District Licensing Committee may state a period of up to 18 months from the date of renewal, during which the new single-area condition will not apply. The period of time must be no longer than reasonably necessary to enable the licensee to configure the premises so that the new single-area condition can be complied with (e.g. it will take x number of months to order and replace shelving). Other conditions may be imposed during this time period, to apply while the new single-area condition does not apply (s.115).

Who does this?

Licensing Inspector.

All staff should have regular training and a record of this should be maintained as evidence. This helps to demonstrate that the premises is well-run and that staff understand their legal obligations.  You may also want to see the content of any training to ensure it is suitable for the operation of the premises.  The applicant may also have policies and procedures in place relating to the sale and supply of alcohol that you may want to view.

Who does this?

Licensing Inspector. Police. Ministry of Health.

Roles and responsibilities

Roles and responsibilities include:

  • Acting independently when exercising and performing duties.
  • Checking submitted plans and tenure.
  • Checking suitability of the applicant.
    • convictions
    • ability to hold the licence
    • training and qualifications, knowledge of the Act
    • assessing type of business sought to be licensed
    • intelligence held
    • Companies Office and Personal Property Securities Register (PPRS)
    • immigration status
    • the location or event designation
    • compliance.
  • Vetting of previous history or compliance issues.
  • Targeting-to-risk to reduce harm.
  • Site-checking new premises.
  • Commenting on CPTED (Crime Prevention Through Environmental Design).
  • Considering any designation and single alcohol area requirements.
  • Monitoring and enforcing compliance with the Act, including undertaking compliance checks.
  • Having knowledge of the key territorial authority partners who have supporting information.
  • Making sure applications are complete (if delegated from the Secretary of the District Licensing Committee).
  • Inspection of premises.
  • Providing information on alcohol management plans and host responsibility.
  • Applying assessment criteria for application, including amenity and good order.
  • Interviewing applicants and referees.
  • Reporting on all applications.
  • Undertaking Controlled Purchase Operations in conjunction with police where required.
  • Giving evidence to the District Licensing Committee by speaking to the report, if required.

Overall the Inspector's role is crucial – it is their responsibility to report to the District Licensing Committee on every aspect of s.105, 106 /131 criteria but also how an application/applicant satisfies the purpose and object of the Act in ss. 3 and 4.

Roles and responsibilities include the following:

  • Checking suitability of the applicant
    • convictions, character and reputation
    • intelligence held
    • immigration status
    • Companies Office and Personal Property Securities Register (PPRS)
    • the location or event designation
    • compliance.
  • Vetting of previous history or compliance issues.
  • Targeting-to-risk to reduce harm.
  • Assessing amenity and good order impacts (including crime).
  • Site-checking new premises.
  • Providing a report if opposed to an application (Smart Client report).
  • Giving evidence by speaking to the report, if required.
  • Commenting on CPTED (Crime Prevention Through Environmental Design).
  • Monitoring and enforcement – undertaking compliance checks.
  • Undertaking Controlled Purchase Operations.

A Public Health Regulatory Officer will generally report on behalf of the Medical Officer of Health (see s.151 delegations). Roles and responsibilities include:

  • checking suitability of the applicant to prevent alcohol-related harm in relation to host responsibility
  • assessing the design and layout of the premises
  • checking Host Responsibility Policy and implementation plan are operational
  • undertaking Health Impact Assessments
  • providing risk profiles – outlining the risk to communities
  • supporting and assisting in Controlled Purchase Operations
  • providing support to reduce alcohol-related health risks
  • providing a report if opposed to an application
  • giving evidence by speaking to the report, if required
  • linking local/community public health issues to alcohol-related harm and the operation of the licence.