POLICY DIRECTIVE No: 09 - 06

Ministry of Housing andSocial DevelopmentLiquor Control and Licensing BranchPOLICY DIRECTIVENo: 09 - 06Date: December 2, 2009To:All LCLB staffAll Industry AssociationsAll Local Government, First Nations, and Police AgenciesRe: Changes to Licensee Retail Store PoliciesThe purpose of this policy directive is to announce recent amendments to the Liquor Controland Licensing Regulation that affect Licensee Retail Stores (LRS) and to clarify current policiesregarding LRSs. These amendments take effect immediately.BackgroundSince the LRS model was introduced in 1985, eligibility for a new LRS has been limited tocommercial bar licensees. In order to operate an LRS the licensee was also required to ownand operate the qualifying liquor-primary (commercial bar) establishment. Since 2002, therelocation policy for LRS’s has been based upon the physical location of this qualifying liquorprimaryestablishment.Qualifying Liquor-Primary LicenceThe requirement that a Licensee Retail Store (LRS) licensee also own and operate thequalifying liquor-primary (LP) establishment has been eliminated. The status of the LRS isno longer dependent upon the status of the associated LP. This means that where the LPlicence is suspended, no longer meets the criteria for licensing, or ceases to operate, there is noeffect on the operation of the LRS licence.Licensees who wish to transfer ownership of either their LP or LRS must obtain approval fromthe general manager by submitting the appropriate application form:• Liquor Primary Licence Application (LCLB001) and/or• Licensee Retail Store (LRS) – Transfer of Ownership (LCLB092d)These forms are available from the Liquor Control and Licensing Branch website athttp://www.hsd.gov.bc.ca/lclb/forms_fees/index.htm.The minimum operating requirements for an LP that was associated with an LRS havealso been eliminated. LPs are no longer required to be of a sufficient capacity to warrant astandalone liquor-primary operation, to be open to the public for a reasonable number of hoursand days per week, or to maintain a viable business in general. LPs may be permanentlyclosed without affecting the operation of the LRS in any way. Licensees are reminded that ifthey decide to close their LP establishment but intend to retain their licence, they must continueto hold valid interest at all times and must continue to meet all of the other regulatoryrequirements, otherwise the licence will be cancelled. Please refer to sections 4.5 and 4.6 ofthe Liquor Licensing Policy Manual for further information.Page 1 of 2

Relocation of an LRSThe relocation policy for LRS’s is no longer tied to the location of the LP but is insteadbased upon the current location of the LRS. An LRS may relocate their store to anotherlocation within the same local government or first nation jurisdiction, or if relocating to a locationoutside the local government / first nation jurisdiction, up to 5 km from the site of the existingLRS. Relocation applications will not generally be approved by the general manager if theproposed site is within 0.5 km of an existing LRS or the site of an LRS application in progress.However, there may be circumstances under which the general manager may approve therelocation of an LRS to a location within 0.5 km of another LRS and these continue to include,but are not limited to, the following circumstances:• Where it would not be contrary to the public interest, e.g. a store loses their leasedlocation due to circumstances beyond their control and the only reasonable location iswithin 0.5 km of another store; or• Where there is a large natural or artificial barrier between the stores, e.g. a river ordivided highway.Currently a small number of LRS applications that were received when the moratorium was lastlifted in 2002 have yet to be licensed. The authority to permit these LRS application in progressto relocate to a new location has been eliminated. All outstanding LRS applications mustcomplete the licensing process, be licensed and opened for business before any futurerelocation applications can be considered.LRS licensees that wish to relocate to a new location can make application by submitting theLicensee Retail Store (LRS) - Application for Transfer of Location (LCLB092) form.Stand Alone RequirementAn LRS may not appear to be associated with another business in the near vicinity and the LRSmust be located in:• A permanent, free-standing building that does not contain another business; or• If in a building in which there are other businesses, the LRS must have its own entranceand exit separate from any other business and a solid floor-to-ceiling wall between theLRS and any other business.LRS’s that were permitted to be associated with another business or whose location wasapproved by the general manager prior to these amendments taking force have beengrandfathered.Further InformationFurther information regarding liquor control and licensing in British Columbia is available on theLiquor Control and Licensing Branch website at www.hsd.gov.bc.ca/lclb. If you have anyquestions regarding these changes, please contact the Liquor Control and Licensing Branch tollfree in Canada at 1-866-209-2111 or 250-387-1254 if calling from the Victoria area.Karen AyersGeneral ManagerPage 2 of 2