1. Ministry of Consumer Services Ministère des Services aux consommateurs Special Occasion Permit Reform Proposed Eligibility Criteria Stakeholder Consultation Document Fall 2009

2. 2 Special Occasion Permit Reform Background and Status Update ▪ The government has been reviewing the Special Occasion Permit (SOP) program under the Liquor Licence Act (LLA). ▪ The Ministry released a consultation paper in Summer 2008 and held group and one-on-one consultations with industry stakeholders and accepted written feedback throughout Fall 2008. ▪ Broad reforms and eligibility criteria for the three new SOP categories have been developed based on these consultations.

3. 3 Objectives of Special Occasion Permit Reform ▪ Streamlining – developing an SOP program that is easier for the customer to use, understand and comply with ▪ Consistency – developing an SOP program that is easier to administer and ensure consistent application of relevant laws and policies ▪ Public Safety – examining the perceived risks that events pose to public safety, and identifying ways to address potential problems and to mitigate those risks

4. 4 Principles of the Special Occasion Permit Program ▪ The special occasion permit was originally developed for one-time special occasions, such as wedding receptions, to allow a permit holder to legally serve and possibly sell liquor for consumption in places other than a residence, private place or licensed premises. ▪ Through the years, the special occasion permit program has evolved. For example, it is now common for charities and community-based organizations to utilize permits to assist with fundraising and to operate large public events for profit. Permits are also taken out by event organizers, manufacturers and manufacturers’ representatives to showcase and/or conduct market research on their products. ▪ The reform initiative seeks to reinforce the original intent of the program, while recognizing the program’s evolution and that there are considerable benefits, whether from a tourism, commercial or community perspective, to allowing larger public and industry promotional events to continue to take place under appropriate conditions.

5. 5 Meeting Objective ▪ The Ministry would like your feedback on the proposed eligibility criteria for the three proposed new categories of special occasion permits: 1)Private Events – would be for invited guests or members, without intended profit from liquor sales.  These events would encompass the current sale and no-sale “Reception” categories 1)Public Events - would be open to the public and holders would be able to profit from sale of liquor. These permits would be restricted to charities and non-profits.  New category would encompass the current “Fundraiser”, “Community Festival” and “Significant Event” categories of permits 1)Industry Promotional Events - would enable manufacturers and industry representatives to promote their products to industry and the general public. Only sampling would be permitted at these events within the designated areas identified and approved on the permit and any charges for sampling of liquor cannot be intended to make a profit.  New category would encompass the current “Consumer Show”, “Trade Show” and “Market Research” categories of permits

6. 6 Proposed Criteria for All Events ▪ Below are some of the key elements of the eligibility criteria. ▪ Premise (criteria maintained):  Alcohol must be served in a designated area with a minimum 36-inch (0.9 metre) partition.  The primary use of the designated area must be the sale and/or service of food and alcohol – no other business may operate from the licensed area.  A permit cannot be issued for a residence or a location with tiered seating intended for a viewing audience.

7. 7 Proposed Criteria for All Events (continued) ▪ Application (criteria maintained):  Applicants must be at least 19 years of age and not on the “Refuse to Issue List”.  Applicants may apply to the AGCO for an extension of hours for events considered to be of municipal, provincial, national or international significance.  Applications for events held outdoors must include copies of notification letters to the police, municipal clerk, building, fire and health departments and a sketch outlining the proposed areas where alcohol will be served and consumed. ▪ Application (changes proposed):  The applicant or his/her designate would have to present government-approved identification either when applying for or picking up the permit.  Municipal notifications for outdoor events would have to be submitted at least 30 days in advance of the event (increased from the current 21 days) – although the Registrar has discretion to exempt applicants from deadline requirements.  Applications could be submitted at any LCBO issuing store (not limited to stores in the municipality where the event is being held).

8. 8 Proposed Criteria for All Events (continued) ▪ Event (criteria maintained):  Permit holder or designate must be in attendance at the event at all times.  Permit holders must have a supply of food sufficient to serve to all persons attending the event.  Events can be held for up to 10 consecutive days (but may not operate an ongoing business). ▪ Event (changes proposed):  Repetitive permits would be issued and the carry-over of liquor from one event to the other may be permitted (eligibility criteria and criteria regarding storage are being developed).  Hours for the sale and service of alcohol would be between 11 am to 1 am, 7 days per week (and 2 am on December 31st or where the permit holder has been approved by the Registrar for an extension of hours). This would harmonize liquor service starting hours on Sundays. ▪ Social Responsibility:  Provisions in the LLA and the Regulation restricting service to individuals of legal drinking age, not serving to intoxication and other comparable provisions which also apply to liquor sales licences will be maintained, where appropriate.

9. 9 Proposed Criteria for Private Events ▪ The Private Event category would be for invited guests or members (e.g., weddings, special one-time events)  Any person aged 19 and older may apply (individual, organization or association)  Events may be sale or no-sale – if a sale permit is issued, the money raised from liquor sales may be used to recover the cost of the liquor, but there could be no intent to profit  Attendance would be by invitation only and the event would not be open to the general public  Public advertising would be prohibited  Application for indoor events would be submitted 10 days in advance and 30 days in advance for outdoor events  Homemade product made and/or product donated by a family member may be available for religious events (all other liquor must be purchased on permit)  Diplomatic events would qualify under this permit category

10. 10 Proposed Criteria for Public Events ▪ The Public Events category would be open to the public and permit holders would be able to profit from liquor sales (e.g., fundraisers):  Only charities and non-profit organizations would be eligible to apply (although private promoters may manage/run the events). This proposal is in keeping with the original intent of the SOP program, that is, to restrict private profit from liquor sales through SOPs. The SOP program was designed to give the public the opportunity to provide liquor service at one-time events. Those wishing to profit from liquor sales may obtain a liquor sales licence.  All events would be sale events and profit from liquor sales may be made  Public advertising would be permitted  Donation of liquor by beverage alcohol manufacturers would be permitted  Mandatory server training for all employees and volunteers involved in the sale and service of alcohol and including security at all events would be required  Applications would be required to be submitted at least 30 days in advance  Prior municipal designation (as a “community festival”, for instance) would no longer be required  Auctions SOPs would be regulated separately (framework being developed)

11. 11 Proposed Criteria for Industry Promotional Events ▪ The Industry Promotional Events category would provide an opportunity for the liquor industry to promote their product to the industry and general public. Expansion to this category is being recommended, see next slide.  Applicant could be manufacturer or manufacturer’s representative or an event organizer working on their behalf  Permit areas would need to be designated and separated from other areas  Only sampling supervised by a licensed representative or manufacturer’s employee would be permitted  Sampling and consumption of samples would be restricted to the permit area  Events could be sale or no sale events – if the event is open to the public, then it must be a sale event, although there could be no intent to profit from the sale of liquor  Applications would be required to be submitted at least 30 days in advance of the event  Server training would be mandatory for those involved in the promotion of liquor

12. 12 Proposal to Expand Industry Promotional Events ▪ An expansion of the Industry Promotional Events category is being recommended to allow manufacturers a broader opportunity to showcase and promote their products to the industry and general public. ▪ Events directly related to an aspect of the hospitality industry would continue to be eligible for an SOP covering an entire event area. ▪ In the new regime being proposed, permits could also be issued to manufacturers and/or manufacturers’ representatives to showcase their products at events that are not directly related to an aspect of the hospitality industry. ▪ Specifically, manufacturers could get an SOP for sampling purposes and hold the event in any specified location currently permitted in the LLA (e.g., not in a private dwelling):  For example, a permit could be issued for sampling booths/areas at outdoor festivals, fairs and farmers’ markets, without restrictions on the nature or purpose of the overall event.  A stand-alone booth in a cordoned off sampling area would be permissible.  The sampling event would have to comply with municipal requirements and with those under the LLA (e.g., liquor service area must have a 0.9 metre partition distinguishing it from the remaining area).

13. 13 Benefits of the Proposed Eligibility Criteria ▪ Streamlined Categories and Process  With three categories to choose from instead of eight, the application process would be easier; there would be less room for error and greater clarity around who may apply for a permit. ▪ Enhanced Public Safety  Streamlined, readily distinguishable categories would facilitate a risk-based approach to administering the program.  Identification would have to be presented on submission of an application or pick-up of the permit.  Mandatory server training would be introduced for Public Events and Industry Promotional Events.  The proposed 30 day time limit for municipal notification for large scale outdoor events would allow better preparation and lead time for front line staff and police. ▪ Enhanced Promotional Opportunities  Manufacturers and their representatives would be able to take out permits for a range of events broader than those just related to the hospitality industry.  The proposals would promote Ontario’s agri-tourism strategy.  There would be additional opportunities for Ontario and foreign manufacturers to promote their products.

14. 14 Further Feedback ▪ Thank you for participating in the reform initiative and providing feedback on the proposals. ▪ The Ministry would be pleased to receive additional written feedback on the proposed criteria for the new special occasion permit categories. Please submit your comments no later than (date) to: Mariela Orellana Senior Policy Advisor Policy and Consumer Protection Services Division Ministry of Consumer Services 777 Bay Street, 5 th floor Toronto ON M7A 2J3 (416) 212-2772 mariela.orellana@ontario.ca