Manitoba Restaurant & Foodservices Association

1. Manitoba Restaurant & Foodservices Association May 14, 2014

2. What is the LGA? On April 1, 2014, The Liquor and Gaming Control Act and accompanying regulations came into force to create the LGA - Liquor and Gaming Authority of Manitoba - as the new liquor and gaming regulator in Manitoba. • The LGA licenses: • liquor sales, service and manufacturing • gaming products, employees and operations • Regulatory focus: • Public interest • Public safety • Social responsibility

3. Focus of new legislation and regulation • Practical, effective, and enforceable • Protects and benefits communities and citizens • Promotes safety and social responsibility • Frames a more modern, flexible and responsive regulatory structure for the hospitality industry • Industry advisory committee was established to give input into the development of the new regulations. • MRFA important committee member

4. Issues/Proposals Response/Action General Too many licence categories Multiple licences for one premises Limited flexibility • Reduced categories from 12 to three: • Service • Sales • Manufacturing • Six service classes for distinct operations: • Dining Room • Dining Room/Cocktail Lounge • Beverage Room • Entertainment Facility • Customer/Member Service • Unique Hospitality Experience (New) • Service parameters detailed via regulation and licence terms and conditions.

5. Issues/Proposals Response/Action General Option to license unique hospitality proposals New licence fee structure for LGA licence categories and fewer licences per establishment • Established “unique hospitality experience” licence category based on business plan that demonstrates the proposal’s exceptional, new and distinct qualities: • offer a unique hospitality experience • cannot be accommodated within another licence category • These licences will not be routinely available. • Current fee structure will be maintained for two years during review and discussion between the Hospitality Industry Advisory Committee and LGA.

6. Issues/Proposals Response/Action General Maintain three year liquor licence • Three year licence period is maintained. • Current licences were transferred to LGA effective April 1. • New licence applications are processed through LGA effective April 1. • Licences for VLT sites and lottery ticket retailers are for a five-year period. • Renewal dates will be maintained and eventually integrated to streamline liquor and gaming licenses.

7. Issues/Proposals Response/Action General Consistent hours of operation for liquor service licensees • Consistent hours for all liquor service licences (except “unique” licence): 9:00 a.m. to 2:00 a.m. with 3:00 a.m. vacating clause. Each licensee will determine their operating hours within this time period. • Specific hours may be set under certain circumstances to respect neighborhood or community interests, e.g. patios. • Municipalities continue to have local option to prohibit or reduce liquor service. • Options for extended hours for special events and occasions are maintained.

8. Issues/Proposals Response/Action General Eliminate holiday/Sunday restrictions to be more culturally inclusive • Holiday restrictions are eliminated. • Remembrance Day restrictions are maintained. • Municipalities continue to have local option to prohibit or reduce liquor service or to restrict Sunday service.

9. Issues/Proposals Response/Action General Ease advertising and marketing restrictions. Level the field for all licensees • Canadian Code of Advertising Standards is established as acceptable for advertising and marketing. Key sections of these Standards apply to LGA aims pertaining to social responsibility and minors. • Tagline message for liquor service and liquor product advertising and marketing – “Please Drink Responsibly”. • Liquor advertising and marketing guidelines www.lgamanitoba.ca.

10. Issues/Proposals Response/Action General Regulation and licensing process is cumbersome and bureaucratic • Legislation has been completely redrafted and revised to modernize the regulatory framework, clarify language and move prescriptive laws into regulations and terms and conditions. • Liquor Licensing Board has been eliminated - licences will be approved and issued administratively. • Executive Director has order-making power to direct remedies, licence suspensions and revocations. • Orders may be appealed to the LGA’s board.

11. Issues/Proposals Response/Action General Appeal process and appeal recourse through the courts A more risk-based, collaborative compliance and enforcement approach • LGA board decisions may be appealed to the Court of Queen’s Bench based on any question involving the board’s jurisdiction or point of law. • This approach has served the MGCC well since its establishment in 1997. • Inspections will be based on risk-based model to identify and focus on high-risk premises. • New act authorizes administrative mediation and order-making model to resolve problems in a timely manner. • Liquor Marts, liquor vendors and specialty wine stores will be licensed and subject to inspection/compliance measures.

12. Issues/Proposals Response/Action General Social responsibility continues to be prime consideration for responsible service/business operations Maintain Serving it Safe Training • Modern regulatory approach focused on social responsibility measures including: • Prevention of service and sale to minors and service to intoxicated persons. • Public safety (including over-capacity). • Public education. • Uniform and minimum pricing is maintained. • Server training continues as a requirement. • LGA will update and refine on-line program during fiscal 2014/15 and link it with VLT training program. • Training will also be extended to retail staff.

13. Issues/Proposals Response/Action General • Exclusivity agreements between manufacturers and licensees must be in writing. • These agreements must be provided to the LGA upon request. • Any gifting by representatives must be primarily for the benefit of your customers. • These agreements must also be in writing and provided to the LGA upon request. Exclusivity agreements and sponsorships. Gifting by liquor manufacturers/representatives

14. Issues/Proposals Response/Action Dining Room/Lounges Remove food to liquor ratio Food service requirements for dining room liquor service reduced to maximize premises and flexibility for consumers • Food to liquor ratio is eliminated. • Dining rooms may serve patrons liquor with or without food service. • 50% of a seating must be available for food services or else be occupied by customers who have ordered or been served a meal.

15. Issues/Proposals Response/Action Dining Room/Lounges Service flexibility for Year of Music • Licensees will be able to operate as occasional “Entertainment Facility” up to 12 times during 2014 as part of Manitoba’s Year of Music celebrations. • Two hours live music • Reduced food services • No licence fee • Apply through LGA

16. Issues/Proposals Response/Action Entertainment Facility – Former Cabarets Restrictive definition of live entertainment for cabarets Remove 200 person minimum for cabarets to support smaller venues Food service requirements eliminate hot food/kitchen requirement for cabarets • DJs mixing original music are authorized as live entertainment. • Minimum 200 seating requirement eliminated effective January 1, 2014. • The full-service, on-site kitchen requirement eliminated effective April 1. LGA board regulations will require food services which may continue to be prepared on-site or supplied through catering and delivery services.

17. Issues/Proposals Response/Action Entertainment Facility – Former Cabarets Do live entertainment facilities still need to submit venue schedules? • No. Compliance inspections will monitor entertainment. • Two hours live entertainment after 8:00 p.m. is required.

18. So What’s Next? • Policy issues raised by industry since April 1st • Currently under consideration • Terms and Conditions to be developed to frame and guide policy direction

19. Issues/Proposals Response Policy Issues What is acceptable as a divider between dining room and lounge? Can my dining room have pool tables and dart games? • A divider must be clear enough to ensure age restriction is assured. • Any reasonable divider will be considered. • Operators best interest is to ensure a clear and defined separation of the area to avoid compliance problems. • No - dining rooms must operate in keeping with their primary purpose – to serve food. • Pool tables and dart games can be accommodated in the lounge area of a dining room/lounge premises.

20. Issues/Proposals Response Policy Issues Are licensees still required to clear and destroy liquor after one hour vacating clause? Will there be a change in patio size limits? Wine takeout from service licensees • Yes. This will be clarified in terms and conditions of each licence. • Considering removing liquor regulation patio size limits. • Municipal zoning and conditional use rules apply. • Good neighbour policy should govern licensee approach. • No - LGA is not considering this issue.

21. Issues/Proposals Response Policy Issues Option to serve liquor to customers waiting in line Patrons carrying drinks between licensed areas in a single premises e.g., from lounge to banquet facility or dining room Dining room closure between 2:00 to 5:00 p.m. Lounge remains open. • Would be authorized in licence terms and conditions. Must be within the licensed premises. • No outdoor or out of premises line ups. • Would be authorized in licence terms and conditions. • This is under active consideration – may require a regulation change

22. Issues/Proposals Status Social Occasion Permits Why did you remove the bottle/brand limits for socials? • This approach is intended to reduce risky situations where some permit holders tried to maximize alcohol sales by sneaking in extra alcohol and not being honest about their number of attendees. • Banquet facilities can set their own bottle limits. • The LGA will continue to emphasize host responsibility to ensure their guests have a good time and that no disorderly or intoxicated people are permitted in the premises. • Inspections will focus on social/host responsibility rather than counting bottles and brands.

23. Issues/Proposals Status Social Occasion Permits What are the rules for raffles at socials? • New social occasion permit application doubles as a raffle authorization • The permit holder must comply with terms and conditions listed on the back of the social occasion permit, including these Criminal Code (Canada) limits related to the raffle: • The amount or value of each raffle prize must not exceed $500. • Each ticket cannot cost more than $2. • Events that don’t have a liquor permit can apply for a raffle licence with the same requirements – the event holder must apply and hold the raffle.

24. Where can I get more information? • The LGA is working to integrate licensing and compliance services as seamlessly as possible for our clients and stakeholders. • We want to work collaboratively with Manitoba’s hospitality industry. • Please call us directly if you have questions or concerns. • Visit www.LGAmanitoba.ca or contact us for more information, including: FAQs, permit application and guide, raffle details, advertising and marketing and inspections. Thank you for your time and interest today.