LIQUOR BILL

DEPARTMENT OF TRADE AND INDUSTRY

TO REGULATE THE MANUFACTURE, DISTRIBUTION AND SALE OF LIQUOR: TO RESTRUCTURE THE LIQUOR INDUSTRY; TO FACILITATE THE ENTRY AND EMPOWERMENT OF NEW ENTRANTS: TO ADDRESS THE ECONOMIC AND SOCIAL COSTS OF EXCESSIVE ALCOHOL CONSUMPTION: AND TO PROVIDE FOR MATTERS CONNECTED THEREWITH.

BE IT ENACTED by the Parliament of the Republic of South Africa, as follows: -

Definitions

1. In this Act, unless the context indicates otherwise -

"beer" means the drink manufactured by the fermentation of a mash of malt, with or without cereals, flavoured with hops, or ale, stout or any other drink manufactured as or sold under the name of beer, ale or stout, if it contains more than one per cent by volume of alcohol, but does not include sorghum beer;

"controlling interest" means an interest as defined in section 1 of the Maintenance and Promotion of Competition Act, 1979 (Act 96 of 1 979);

"inspector" means an inspector designated under section 18;

"liquor" means -

1. any liquor product as defined in section 1 of the Liquor Products Act, 1989; and
2. any beer or sorghum beer;

"Member of the Executive Council" means the Member of the Executive Council of a province designated by the Premier concerned to give effect to the provisions of this Act in that province;

"Minister" means the Minister of Trade and Industry;

"person" includes a trust;

"premises" includes a place or building or part of a building on any premises and a vehicle, aircraft or vessel which is mainly used by tourists;

Prescribed" means prescribed by regulation;

"Provincial liquor authority" means the body established by section 4 of the Act;

"registered premisesH the premises in respect of which an application for registration has been granted;

"sell" includes exchange or keep, offer, display, deliver, supply or dispose of for sale, or authorise, direct or allow a sale;

"sorghum beer" means the drink generally known as sorghum beer and commonly manufactured from grain sorghum, millet or other grain;

CHAPTER 2

REGISTRATION TO SELL LIQUOR

2. Application for registration. - (1 ) Any person not disqualified in terms of section 8, may upon payment of the prescribed application fee apply to the Provincial liquor authority for registration to sell liquor.

An applicant shall make written application, in duplicate, to the Provincial liquor authority and shall -

1. furnish in the said application such information as is solicited in subsection (3);
2. declare under oath or truly affirm that the obligations set out in Chapter 3 will be complied with; and
3. declare under oath or truly affirm at the end of the application that the information contained therein is true.

(3) An applicant shall -

(a)

1. in the case of a natural person, provide his/her full names and identity number and registration number with the Registrar of Companies;
2. in the case of a company or close corporation, provide its registration number with the Registrar of Companies;

(b) be a permanent resident or citizen of the Republic of South Africa and provide the address at which the proposed business will be conducted: Provided that in the case of a vehicle, aircraft or vessel, the address at which the head office is situated shall be furnished;

(c) state the category of registration required;

(d) confirm in writing that he or she is not disqualified in terms of section 8 from being registered as such;

(e) provide written confirmation from the local authority in whose area of jurisdiction the proposed premises is situated, that the premises concerned comply in all respects with the requirements of that authority;

(f) submit a business plan in respect of the business concerned which indicates -

(aa) the number of clients he or she intends to serve;
(bb) the expected turnover of the proposed business; and
(cc) the expected gross and nett profit;
(dd) appropriate facilities if liquor is to be consumed on the premises;

(g) provide conclusive proof that the proposed premises has been zoned for the purpose of the business concerned;

(h) submit a plan of the premises where the proposed business is to be conducted: Provided that if the business is to be conducted from residential premises, the plan must indicate that the business is completely separated from the residential portion and that there is no direct means of communication between the two areas;

(i) confirm in writing that -

(aa) a notice indicating the intention to register was placed in a newspaper circulating in the area 30 days preceding the date of application;
(bb) a notice indicating the intention to register was affixed to the outside of the proposed premises where it is a building or a part of a building or a vehicle or vessel or in every other case, a board was affixed to a pole firmly planted in the ground on the premises concerned, for a continuous period of 30 days preceding the date of application, in a conspicuous place where it was clearly visible and legible to passersby;

(i) provide conclusive proof that, where the premises is situated in the vicinity of a school or place of worship or in a residential area, two-thirds of the residents within a 500 m radius of the proposed premises indicated in writing that they had no objection to the proposed business.

(4) An application in terms of this section for registration to sell liquor at a special event in terms of section 3(d) shall comply with the provisions of subsection (3) of this section; Provided that the provisions contained in subsection (3)(f)(g)(h), (i) and (I) shall not apply and on condition that the application states the nature and duration of the special event and meets any other requirement that the Provincial liquor authority may determine.

3. Categories of registration. - ( 1 ) There shall be the following categories of registration:

1. for the sale of liquor by the manufacturer thereof;
2. for the sale of liquor by a wholesaler;
3. for the retail sale of liquor; and
4. for the sale of liquor at a special event.

(2) Each registration referred to in subsection (1) shall be subject to annual renewal as prescribed.

4. Institution of Provincial liquor authority. - A separate Provincial liquor authority is hereby instituted for each province of the Republic of South Africa.

5. Constitution of Provincial liquor authority .- (1) A Provincial liquor authority shall consist of:

1. a chairperson in the employ of the state and with a qualification in law; and
2. one community representative for each geographical subregion of the province appointed on the basis of their knowledge and representivity of a particular area .

(2) The appointment of the regional members shall take place through an open and transparent public process.

(3) Persons with an interest in the liquor trade shall not be appointed as members of a Provincial liquor authority.

(4) The chairperson and two members shall form a quorum.

(5) Meetings of the Provincial liquor authority shall be convened by the chairperson.

(6) The procedure at meetings shall be determined by the chairperson.

6. Powers of Provincial liquor authority. - A Provincial liquor authority shall have the power to:

1. consider, grant or refuse applications for registration;
2. withdraw or suspend registrations;
3. determine conditions applicable to registrations; and
4. perform such other functions as may be assigned to it in terms of this Act.

7. Duty of Provincial liquor authority. - ( 1 ) If an application complies with the provisions of sections 2(2), 2(3) and 2(4) and has not been objected to, the Provincial liquor authority shall grant the applicant registration to sell liquor.

(2)

1. An application that has been objected to must be considered by the Provincial liquor authority.
2. Applicants and objectors shall be given at least two weeks written notice of the hearing.

(3) The original application shall be retained by the Provincial liquor authority and the copy and a copy of Chapter 3 of this Act returned to the applicant.

(4) Both the original and copy of the application shall reflect :

1. that the applicant has upon payment of the prescribed registration fee been registered and the category of registration;
2. that the applicant has been given a serial number;
3. that the application has been signed by a person of at least the rank of Assistant Director;
4. any conditions determined by the Provincial liquor authority.

(5) If an application in terms of subsection (1) or (2) is granted in respect of premises not yet erected or premises requiring any structural alteration or reconstruction so as to make it suitable for the purposes for which it will be used, the Provincial liquor authority shall nevertheless register the applicant on condition that, within a period stipulated by the Provincial liquor authority, an inspector certifies that the premises has been completed as indicated on the plan.

(6) Such officers and employees as are required for the proper performance of a Provincial liquor authority's functions shall be designated by the head of the provincial department responsible for liquor affairs.

8. Disqualification. - ( 1 ) The Provincial liquor authority shall not register a person -

1. who is a minor on the date of registration;
2. who has in the Republic or elsewhere in the three years preceding the registration, been convicted of assault, rape, murder, robbery, trade in or possession of drugs, child abuse or any offence involving dishonesty or an offence in terms of this Act;
3. as a retailer of liquor if such person also sells liquor manufactured by him/her or is a wholesaler of liquor;
4. as a wholesaler of liquor if such person also sells liquor manufactured by him/her or is a retailer of liquor;
5. as a manufacturer of liquor if such a person is also a wholesaler or a retailer of liquor: Provided that the provisions of this subsection shall not apply to a person or an association of persons who sells wine manufactured from grapes produced on land owned or lawfully occupied by him/her or any member of the association and the wine is sold on such land.

2. If a person who is in terms of subsection ( 1 ) disqualified from being registered: -

1. has a controlling interest in a company, close corporation or trust;
2. is a partner in a partnership; or
3. is the main beneficiary under a trust; such a company, corporation, partnership or trust, shall not be registered.

9. Records. - Every Provincial liquor authority shall -

1. keep a record of every person registered to deal in liquor and which shall at least reflect the following information -
1. in the case of a natural person, his/her full names and identity number and registration number with the Registrar of Companies;
2. in the case of a company or close corporation its registration number with the Registrar of Companies;
3. the address at which the proposed business will be conducted: Provided that in the case of a vehicle, aircraft or vessel, the address at which the head office is situated shall be provided;
4. the category of registration;
2. at the end of every month, forward to the Department of Trade and Industry a list, containing the particulars set out in subparagraph (a) above, of all registrations which had taken place, those whose registrations have been refused and those which have been withdrawn or suspended.
   

---

CHAPTER 3

OBLIGATIONS APPLICABLE TO REGISTERED PERSONS

10. Juveniles and intoxicated persons. - A person registered to sell liquor shall not sell or supply liquor on the premises -

1. to any person who is under the age of 18 years;
2. to an intoxicated person.

11. Employees. - (1) A person registered to sell liquor shall not in or in connection with the sale or supply of liquor, employ any person -

1. who is under the age of 18 years; or
2. who, to his or her knowledge, has within the preceding three years been convicted of a contravention of any law governing the sale of liquor.

(2) Subsection (1) shall not apply -

1. to any person of or above the age of 16 years who is undergoing or has undergone training in catering services, and who is employed on the premises of the registered person to whom he or she is duly apprenticed in any capacity in connection with the management of the business; or
2. to a member of the family of the registered person or of the manager of the business.

12. Place of sale, supply and storage of liquor. - Any person registered to sell liquor shall -

1. only sell, supply and store his/her liquor in those parts of the premises clearly intended for that purpose and indicated as such on the plan which accompanied his or her application;
2. during the hours when the sale of liquor is not permitted (if applicable), store his/her liquor in such a place on the registered premises or in such a manner as to render it inaccessible to the public.

13. Prohibition on the sale of liquor for consumption on the premises. - Any person who is registered -

1. to sell liquor manufactured by him or her; or
2. for the sale of liquor by a wholesaler,

shall only sell or supply liquor for consumption off the premises: Provided that the provisions of this subsection shall not apply to a person or an association of persons who sells wine manufactured from grapes produced on land owned or lawfully occupied by him/her or any member of the association and the wine is sold on such land.

14. Persons to whom liquor may be sold. - Subject to the provisions of section 8(1)(e), any person who is registered -

1. to sell liquor manufactured by him or her; or
2. for the sale of liquor by a wholesaler,

shall only sell or supply liquor to a person who is registered in terms of this Act to sell liquor.

15. Delivery of liquor. - A person registered to sell liquor shall not

1. deliver any liquor from or by any vehicle or other receptacle or induce any person to do so, unless, before the despatch of the liquor, that liquor was ordered and an invoice was made out in respect of the order, the original of which shall be retained on the premises from which the liquor is despatched;
2. convey liquor for delivery in any vehicle or other receptacle unless he or she retains a copy of the invoice, contemplated in paragraph (a), in respect of that liquor in that vehicle or receptacle;
3. deliver liquor to an address not given in that invoice.

16. Notices. - A person registered to sell liquor shall keep and maintain on the premises a notice, in at least two of the official languages of which one shall be English, in a conspicuous place, which is clearly legible to customers that

1. it is an offence to sell liquor to persons under the age of 18 years and to intoxicated persons;
2. the consumption of alcohol by a pregnant or breast feeding woman may be detrimental to her or the baby's lives.

17. Days and hours of sale of liquor. - A person registered to sell liquor -

1. may, notwithstanding any law to the contrary, sell liquor on any day of the week;
2. shall only sell liquor during the hours which the local authority, in whose area of jurisdiction the premises is situated, may in its sole discretion determine.
   

---

CHAPTER 4

INSPECTORATE

18. Designation of Inspectors. - (1) The Minister and Member of the Executive Council may designate any person or persons in the employ of the State as an inspector for the purposes of this Act.

(2) A person designated in terms of subsection ( 1 ) shall have the powers and perform the duties conferred upon him or her in respect of premises situated in the area of jurisdiction of the Member of the Executive Council concerned and in the case of a designation by the Minister, the Republic of South Africa.

(3) A person shall not be designated as an inspector in terms of subsection (1 ) unless such person has by virtue of the provisions of section 334(1 )(a) of the Criminal Procedure Act, 1977 (Act No. 51 of 1977) been declared a peace officer.

(4) An inspector shall be provided with a certificate, signed by the Minister or in the case of a designation by the Member of the Executive Council, by him/her, declaring that he or she has been designated as an inspector for the purposes of this Act.

19. Reports by inspectors. - An inspector shall, as soon as possible after the fact concerned has come to his or her notice, submit to the Provincial liquor authority a report -

1. on any failure by a registered person to discharge an obligation set out in Chapter 3;
2. if he or she is of the opinion that alterations or repairs ought to be effected to the premises of a registered person;
3. on any other matter which in the opinion of that officer ought to be brought to the notice of the Provincial liquor authority.

20. Powers of inspectors. - ( 1 ) An inspector may in the performance of his or her functions -

1. at all reasonable times enter any premises, and, after having informed the person who is then in charge of the premises of the purpose of his or her visit, make such investigation and enquiry as he or she may think necessary;
2. either alone or in the presence of any other person, as he or she may think fit, question a registered person or any person in charge of the business or the manager thereof or person who has made an application for registration or any employee of the registered person whom he or she finds on the premises of the business;
3. order any person contemplated in paragraph (b) to appear before him or her at a time and place fixed by the inspector, and at that time and place question that person with regard to any matter which he or she is investigating;
4. perform those functions conferred upon him or her by sections 40(1)(a), 44 and 56 (read with section 57(5) and (6) of the Criminal Procedure Act, 1977 (Act No. 51 of 1977)).

(2) Any person who is in charge of any premises contemplated in subsection (1) shall at all reasonable times while an inspector is on those premises or in that place render such assistance as may be required by an inspector in the exercise of his or her powers.

(3) If an inspector is satisfied from information on oath or from personal observation that the fact that -

1. liquor is being sold by a person registered in terms of this Act gives rise to circumstances on or near those premises which probably warrant the suspension or withdrawal of the registration;
2. a person registered in terms of this Act failed to discharge an obligation set out in Chapter 3; he or she may make representations to the Provincial liquor authority regarding the suspension or withdrawal of the registration concerned.

CHAPTER 5

NATIONAL LIQUOR ADVISORY COMMITTEE

21. Institution of a National Liquor Advisory Committee. - A National Liquor Advisory Committee is hereby instituted for the Republic of South Africa.

22. Composition of National Liquor Advisory Committee.- ( 1 ) The Committee shall consist of -

1. three members from the liquor industry;
2. seven members from Government Departments to be selected from the Department of Health, Welfare, Education, Transport, Safety and Security, Trade and Industry, Agriculture, Sport and Recreation, Public Works, Constitutional Development, Arts and Culture, Tourism or Finance;
3. eight members from community and civil organisations, including unions and churches.

(2) The Minister will appoint members through an open and transparent public process.

(3) If there are sound reasons for doing so the Minister may at any time remove from office any member appointed under subsection (1).

23. Meetings of the National Liquor Advisory Committee. - ( 1 ) Meetings of the Committee shall be convened by the Minister.

The members of the Committee shall elect a chairperson and the chairperson shall determine the proceedings at each meeting.

(3) The Chairperson and six members of the Committee shall constitute a quorum for a meeting of the Committee.

(4) Meetings of the Committee shall be convened for the consideration of the matters referred to in section 24.

(5) If the Chairperson is of the opinion that a particular person is able to assist the committee in the consideration of a particular matter, he/she may co-opt that person for that purpose.

(6) A decision of the Committee shall be taken by a majority of votes of the members present at a meeting, and in the event of an equality of votes on any matter, the chairperson shall have a casting vote in addition to his/her deliberative vote.

24. Functions of the National Liquor Advisory Committee. - The Committee shall advise the Minister or Member of the Executive Council on any matter referred to the Committee by the Minister or Member concerned for consideration and arising from the application of this Act or relating to the distribution, or control over the distribution of liquor or the socio-economic implications relating to the use or abuse of liquor.

25. Remuneration .- If any person appointed in terms of this Act is not in the employ of the State, he or she will be entitled to such remuneration and allowances in connection with the performance of his or her duties in terms of this Act as the Minister may in consultation with the Minister of Finance determine.

CHAPTER 6

OFFENCES AND PENALTIES

26. Offences regarding liquor trade. - ( 1 ) Any person who enters into or is a party to a tie, shall be guilty of an offence.

(2) In the application of this section, sties means any agreement, understanding or condition whereby any person is directly or indirectly bound at any time -

1. to purchase liquor, whether together with any other article or not, from or through any person, whether to the exclusion wholly or partly of any other person or not;
2. to purchase or keep in stock liquor of a particular manufacturer;
3. not to purchase liquor from or through a particular person;
4. not to purchase or keep in stock liquor of a particular manufacturer.

27. Offences in general. - (1 ) Any person who -

1. sells any liquor otherwise than in terms of a registration;
2. is drunk, violent or disorderly on a registered premises;
3. is drunk in or on
1. any road, street, lane, thoroughfare, square, park or market;
2. any shop, warehouse or public garage; or
3. any place of entertainment, cafe, eating-house or racecourse or any other premises or place to which the public has or is granted access (irrespective of whether access is granted against payment or is restricted to any category of persons or not);
4. consumes any liquor in any road, street, lane or thoroughfare, or on vacant land adjacent thereto, in an urban area or other area subdivided into erven or plots with streets bounded by such erven or plots;
5. introduces, possesses or consumes any liquor on a sportsground or any part thereof, to which the public has or is granted access (irrespective of whether access is granted against payment or is restricted to any category of persons or not), except on any registered premises situated on the sportsground concerned;
6. falsely represents himself or herself or any other person to be over the age of 18 years in order to persuade the person registered, or his or her agent or employee, to sell or supply liquor to him or her or that other person; or
7. supplies liquor to a person in his or her employ as wages or remuneration or as a supplement therefore,

shall be guilty of an offence.

28. Offences regarding inspectors. - Any person who -

1. falsely holds himself or herself out to be an inspector;
2. makes a relevant statement to an inspector which is false or misleading in any material respect, knowing it to be false or misleading;
3. refuses or fails to comply to the best of his or her ability with any lawful demand, order or requirement of an inspector; or
4. hinders or obstructs an inspector in the exercise of his or her powers, shall be guilty of an offence.

29. Offences by registered persons in general. - A registered person who -

1. keeps the registered premises open for the sale, supply orconsumption of liquor or sells or supplies any liquor at a time when the sale of liquor is not permitted by the local authority;
2. sells, stores or supplies liquor in a place where the sale or supply of liquor is not permitted;
3. contravenes section 11;
4. contravenes section 10;
5. contravenes section 15; (f) contravenes section 16; (g) contravenes section 13; (h) contravenes section 14;

shall be guilty of an offence.

30. Offences by persons selling liquor for on-consumption. - A person selling liquor for on-consumption who -

1. allows drunkenness or licentious conduct on the registered premises; or
2. sells or supplies liquor to a person who is in a state of intoxication,

shall be guilty of an offence.

31. Penalties. - (1) Any person who is guilty of an offence in terms of this Act, shall on conviction be liable:

1. in the case of an offence referred to in section 26 to a fine or to imprisonment for a period not exceeding 10 years;
2. in the case of an offence referred to in section 27(1)(a); section 27(1)(f); section 27(1)(g); section 28; section 29(i); section 29(b); section 29 (c); section 29 (d); section 29 (e); section 29 (f); section 29(g) and section 29 (h), to a fine or to imprisonment not exceeding 5 years.
3. in the case of an offence referred to in section 27(1)(b); section 27(1)(c); section 27(1)(d) and section 27(1)(e), to a fine or to imprisonment not exceeding 1 year.

(2) Any person who is convicted of an offence contemplated in subsection (1) within a period of three years after he or she was convicted of any offence contemplated in that subsection, shall be liable to double the fine or imprisonment which may be imposed for that offence, or to both that fine and that imprisonment.

32. Competency to impose penalties. - Notwithstanding any law to the contrary, a magistrate's court shall have jurisdiction to impose any penalty prescribed by this Act.

33. Regulations.- (1) The Minister may make regulations regarding :

1. the payment of fees in respect of any application made in terms of this Act.
2. the payment of fees in respect of registrations.
3. the procedure with regard to the renewal of registrations and the payment of annual fees in respect of renewals;
4. the duties of officers by virtue of this act;
5. the form of notices, appointments, determinations and applications in terms of this Act.
6. any matter which in terms of this act is required or permitted to be prescribed; and
7. in general, any matter in respect of which he/she thinks it necessary or expedient to make regulations for achieving the objects of this Act, the generality of this paragraph not being limited by the preceding paragraphs.

(2) A regulation made under this section may for a contravention thereof or failure to comply therewith, prescribe a penalty or a fine or imprisonment for a period not exceeding six months.

(3) A regulation under this section regarding any fees or allowances shall be made in consultation with the Minister of Finance.

CHAPTER 7

TRANSITIONAL PROVISIONS

34. Conversion of certain exemptions, licences and approvals.- (1) Notwithstanding any law to the contrary, every exemption, licence or approval of the kind referred to in the first column of Schedule 1 and in force immediately before the date of commencement of this section shall as from that date be deemed to be a registration in the category referred to in the second column of the said Schedule.

(2) A notice issued under section 33 of the Liquor Act, 1989, in respect of an application for a licence referred to in the first column of Schedule 1 of this Act and in force immediately before the date of commencement of this section, shall as from that date be deemed to be a registration referred to in the second column of the said Schedule to which the provisions of section 7(5) of this Act shall apply mutatis mutandis.

35. Producers and wholesalers. - A producer as defined in section 31 (2) of the Liquor Act, 1989 (Act No. 27 of 1989), and the holder of a wholesale liquor licence which became a registration to sell liquor for wholesale shall dispose of all his/her or its interests in the retail liquor trade within a period of 3 years after the commencement of this Act. A person who has been conducting business as both a producer as so defined and a wholesaler of liquor shall within the same period dispose of all his/her or its interests in the retail liquor trade and in either manufacturing or wholesale.

36. Brewers' licences. - The holder of a brewer's licence which became a registration for the sale of liquor by the manufacturer thereof, shall dispose of all his/her or its interests in the wholesale and retail liquor trade in so far as such interests relate to the manufacture and sale of beer and/or sorghum beer, within a period of 3 years after the commencement of this Act.

37. Storing of liquor. - Any determination made in terms of section 51(2) of the Liquor Act, 1989 (Act No. 27 of 1989) shall lapse on 31 December of the year in which this Act comes into operation and shall cease to be of any force and effect.

38. Existing ties. - Any consent granted to enter into a sties by virtue of the provisions of section 158(2) of the Liquor Act, 1989 (Act No. 27 of 1989) shall lapse on 31 December of the year following the year in which this Act comes into operation and shall cease to be of any force and effect.

39. Pending cases in terms of Act 27 of 1989. - Subject to the provisions of section 34 (conversion of notices), any application or matter received by a local authority in terms of the provisions of the Liquor Act, 1989 (Act No.
27 of 1989) before the commencement of this Act and not disposed of at such commencement, shall be disposed of by that local authority in terms of that Act as it existed immediately before the commencement of this Act.

40. Repeal of Law. - The Liquor Act, 1989 (Act No. 27 of 1989), is hereby repealed.

41. Short title. - This Act shall be called the Liquor Act, 1997, and shall come into operation on a date fixed by the President in the Gazette.

SCHEDULE 1

EXEMPTIONS, LICENCES AND APPROVALS CONVERTED

SECTION 34