Alcohol Sales Lawyer

 The Alcohol Gaming Commission of Ontario (“AGCO”) regulates bars, restaurants, liquor delivery services, special occasion permits, liquor manufacturers and their representatives in Ontario. It does so by upholding the principles of honesty and integrity of licensees in accordance with the public interest. The AGCO is a Crown corporation with a board of directors appointed by the Ontario Cabinet. It employs an individual called a “Registrar” to make administrative decisions regarding liquor license/permit applicants and holders. The AGCO administers the Liquor Licence Act, 1990 to regulate the following individuals or businesses:

• Alcohol manufacturers;
• Alcohol manufacturer representatives; 
• Bars and restaurants serving alcohol;
• Beer and wine equipment retailers;
• Liquor delivery services, and;
• Special occasion permits (ex. Stag & Does)

Services 

Burokas Law acts as a liquor licence lawyer in providing a range of services from representing individuals and corporations applying for a licence or permit to those facing any administrative action from the AGCO. Common examples include:

• advocacy and advice during the licence or permit application process; 
• appealing proposals to refuse, refuse to renew, suspend, or revoke any type of licence or permit;
• conducting hearings at the Licence Appeal Tribunal of a proposal;
• appealing  Licence Appeal Tribunal decisions to Divisional Court for judicial review;
• defending Provincial Offences Act charges under the Liquor Licence Act and Liquor Control Act, and;
• appeals of trial decisions or sentence of a Liquor Licence Act or Liquor Control Act charges.

Liquor Licence Act

Under the Liquor Licence Act, 1990, individuals and corporations require a licence for the following activities:

• selling “liquor” (spirits, wine, and beer);
• ex. restaurants, bars
• delivering liquor;
• representing a manufacturer in respect to selling liquor or soliciting on their behalf;
• providing a place to people to make their own beer or wine, and;  
• selling alcohol on a special occasion (permit)

Licence to Sell Liquor

An individual or corporation is entitled to a licence to sell liquor unless

• they manufacturer liquor, or are likely to exclusively promote the sale of a manufacturer's liquor, subject to exceptions;
• they cannot reasonably be expected to be financially responsible in their business; 
• their past or present conduct affords reasonable grounds for the belief that they will not act in business in accordance with the law and honesty and integrity;
• the conduct of the officer/director (if applicable), manager, and “interested person” is considered. 
• they, or their employee/agent, made a false statement on an application for a licence;
• they are, or will be if licensed, engaging in activities in contravention of the Liquor Licence Act, 1990 or it’s regulations, or a City of Toronto by-law; 
• their facilities or equipment are not, or will not be if licensed, in compliance with the Liquor Licence Act; 
• they cannot demonstrate to the Registrar that they will exercise sufficient control over their business, or; 
• a licence is not in the public interest considering the needs and wishes of the residents in the relevant municipality.

A holder of a selling licence is not permitted to act under the agreement of a specific manufacturer or person associated or connected with one. 

Notice to Public

If the Registrar of the AGCO cannot establish the above listed considerations but still has doubts about whether granting a licence is in the public interest, he or she must request written submissions from residents of the relevant local municipality about whether issuing a licence is in the public interest, having regard to their needs and wishes. If there are objections, the Registrar must consider them and may call a public meeting.

“Risk Based Licensing”

In circumstances that, in the opinion of the AGCO board, raise safety, public interest, and non-compliance risks; the AGCO may impose conditions on a holder’s licence and location where the licence is issued. Conditions may be added or removed as circumstances change.

Licence to Deliver Alcohol 

An individual or corporation is entitled to deliver liquor if they have a licence to do so. An applicant or licensee (holder of a licence) is entitled to a licence (or retain it) unless the Registrar can establish:

• they are a manufacturer of liquor, or are likely to exclusively promote the sale of a manufacturer's liquor (subject to exceptions); 
• they cannot reasonably be expected to be financially responsible in their business;
• their past or present conduct affords reasonable grounds for belief that they will not act in business in accordance with the law and with honesty and integrity;
• the conduct of the officer/director (if applicable), manager, and “interested person” is considered
• they, or their employee/agent, made a false statement on an application for a licence; 
• they are, or will if licensed, engage in activities in contravention of the Liquor Licence Act, 1990 or it’s regulations, or a City of Toronto by-law, or;
• their facilities or equipment are not, or will not be if licensed, in compliance with the Liquor Licence Act

Similar to a licence to sell liquor, a deliverer of liquor is not permitted to act under the agreement of any specific manufacturer or person associated with one.

Manufacturer’s Representatives

Employees or agents of a manufacturer must obtain a representatives’s licence to canvas for, receive, or solicit business from alcohol sellers. This licence can be used strictly to conduct business with alcohol sellers like restaurants and bars, not the LCBO or the general public. All agents and representatives of an alcohol manufacturer must obtain a representative licence. An individual is entitled to a licence unless the Registrar can establish:

• their past or present conduct affords reasonable grounds for belief that they will not act in business in accordance with the law and honesty and integrity;
• The conduct of the officer/director (if applicable), manager, and “interested person” is also considered. 
• they, or their employee/agent, made a false statement on an application for a licence, or; 
• they are, or will if licensed, engaging in activities in contravention of the Liquor Licence Act, 1990 or it’s regulations. 

Ferment on Premise Licence 

A ferment on premise licence (FOP) is required to allow an individual or corporation to operate a business where customers can make their own beer or wine for personal use. Such licensee cannot sell their own liquor and must obtain a federal FOP registration with the Canada Revenue Agency. An individual or corporation is entitled to operate a FOP business unless the Registrar can establish:

• they are a manufacturer of liquor or are likely to exclusively promote the sale of their liquor, subject to exceptions; 
• they cannot reasonably be expected to be financially responsible in they business;
• their past or present conduct affords reasonable grounds for belief that they will not act in business in accordance with the law and honesty and integrity;
• the conduct of the officer/director (if applicable), manager, and “interested person” is also considered. 
• they, or their employee/agent, made a false statement on an application for a licence;
• they are, or will if licensed, engaging in activities in contravention of the Liquor Licence Act, 1990 or it’s regulations. 
• Their facilities or equipment are not, or will not be if licensed, in compliance with the Liquor Licence Act. 

Special Occassion Permit

An individual or corporation may apply for a permit to allow them to sell liquor for special occasion like a stag and doe. They are entitled to do so unless the Registrar can establish:

• they are a manufacturer of liquor or are likely to exclusively promote the sale of their liquor, subject to exceptions;
• their past or present conduct affords reasonable grounds for belief that they will not act in business in accordance with the law and honesty and integrity;
• the conduct of the officer/director (if applicable), manager, and “interested person” is also considered. 
• they, or their employee/agent, made a false statement on an application for a licence;
• they are, or will if licensed, engaging in activities in contravention of the Liquor Licence Act, 1990 or it’s regulations; 
• their facilities or equipment are not, or will not be if licensed, in compliance with the Liquor Licence Act, or;
• there has been contraventions of the law on the premises where the liquor is to be sold during a previous event. 

Like selling licences, the Board of the AGCO may also establish additional conditions on a special occasion permit, called a “risk based permit”, based on public safety, public interest, and compliance concerns.

Investigations, Inquires, and Inspections 

The AGCO has the ability to make inquires and conduct investigations into individuals' and corporations' competence, financial history, or character, in order to determine whether they meet, or continue to meet, the requirements for their licence. This includes their interested persons, or their officers, directors, shareholders (corporate licensees) or partners (if a partnership). The Registrar can require information or material from these individuals to assist in their inquiry or investigation and sign a written statement having the same effect as testifying in court. 

The applicant or licensee must pay reasonable costs or provide security to the Registrar to pay for the inquiry or investigation.

The AGCO also employs inspectors who routinely inspect premises to ensure compliance with the Liquor License Act and may inspect documents, remove documents, inquire about bank accounts and financing, conduct tests, and, with a search warrant, remove materials for testing purposes.

Interested Persons

The Liquor Licence Act, like many professional regulatory statutes, utilizes the concept of an “interested person” to ensure that individuals who have , or may have, influence over a licensee are subject to the same scrutiny as individuals or corporations who apply or hold licences. A person is deemed to be an interested person of another if:

• the person has a beneficial interest of any kind, directly or indirectly, in the applicant’s or licensee’s business;
• the person exercises, or may exercise direct or indirect control over the applicant’s or licensee’s business, or;
• the person has provided, or may have provided direct or indirect financing to the applicant’s or licensee’s business.

If the Registrar of the AGCO considers an individual an interested person of a applicant or licensee, they will consider and individual’s past conduct in deciding whether to refuse, revoke, suspend, or fail to renew a licence. 

Proposals- Refuse, Revoke, Suspend, or Refuse to Renew 

If the Registrar believes an applicant or licensee does not meet one or multiple of the above listed criteria for the relevant type of licence, he or she will issue a Proposal. A proposal is an administrative action the Registrar can take to either refuse an application, revoke a licence, suspend an licence, or refuse to renew a licence when it’s up for renewal. 

A proposal is a legal document that will outline what administrative action the Registrar is taking and why he or she is taking it. These reasons must be grounded in the above listed criteria for each type of licence. 

Appeals

The Registrar’s authority to determine whether a licence or permit should be refused or revoked is not absolute. Individuals and corporations receiving proposals can appeal the Registrar’s decision to the Licence Appeal Tribunal; an independent tribunal that hears evidence and arguments about why a licence or permit should or should not be granted/suspended. To appeal, an individual or corporation must serve a notice of appeal to the Licence Appeal Tribunal and the Registrar within 15 days of receiving the proposal. Otherwise the proposal will be carried out and whatever is being proposed on the proposal will be effected. 

Hearings

Hearings at the Licence Appeal Tribunal are governed by their Rules of Practice and Procedure. Generally, hearings are similar to a trial in court where each party may make opening submissions, call evidence, cross-examine the other party’s evidence, and make closing submissions. A member of the Licence Appeal Tribunal will sit as an independent adjudicator and make findings of fact, weigh evidence, make witness credibility findings, and apply those findings to applicable law. 

Conditions

It is very common for conditions to be attached to the various licences/permits described above. They often arise in situations where the Registrar has some concerns with an applicant or licensee, but they do not rise to the level of initiating or continuing with a proposal. Such conditions may impose restrictions on conduct or simply reiterate obligations already mandated by the Liquor Licence Act and it’s regulations. Conditions can be either imposed by the Licence Appeal Tribunal as outcome of a hearing, ordered as part of a resolution, or consented to by the applicant/licensee. 

Offences and Prosecution

The AGCO also has powers to charge individuals and corporations with offences and prosecute them in court. The offences include:

• knowingly furnishing false information in an application for a licence;
• knowingly failing to comply with an advertising order, and;
• contravening any provision of the Liquor Licence Act or it’s Regulations

Individuals found guilty of one of these offences (except selling liquor to minors) can be sentenced to a fine up to $100,000 ($250,000 for corporations) and one year imprisonment. For selling liquor to a minor, the maximum fines for individuals and corporations increase to $200,000 and $500,000 respectively and with a minimum fine of $1,000.

Any conviction under the Liquor Licence Act will have severe consequences on an applicant’s or licensee’s ability to enter or remain in the industry.