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MPUMALANGA RETAIL LIQUOR

1. - Business Liquor License Manager
What is a Section 45?

LIQUOR MANAGER APPOINTMENTS

THE DEPARTMENT OF ECONOMIC DEVELOPMENT AND PLANNING
HAS PUBLISHED THE FOLLOWING REGULATION NOTICE

Mpumalanga Liquor Licencing Regulations, 2007; under section 45 of the Mpumalanga Liquor Licencing Act, 2006 (Act No.05 of 2006)

Management of Liquor Licensed Business
Any Entity and or Individual (Business) that has been issued a Liquor License for Consumption On or Off the Premises (Issued individually and or combined, including the Manufacturing of Liquor for consumption On /Off the Premises) shall in accordance with the Act, appoint responsible natural persons to be accountable for the Sale of Liquor on the Business Premises during the Trading Days and Hours of such Business.

The application form (With attached FICA Documentation) to appoint a responsible person shall be submitted to the (MER) Mpumalanga Economic Regulator for approval, and the appointed person shall be issued an Appointment Letter of Certificate from the MER.

Therefore, the appointed person shall manage and be responsible for the Business (Sale of Alcohol) to which such licence relates as set out in Annexures 12 and 13 to the Schedule.

The following Persons are disqualified to be appointed under Section 45 – Liquor License Manager;
✓ No Valid South African I.D.
✓ Passport – No Business and or Work Permit
✓ A Minor (Children under 18)
✓ An unrehabilitated insolvent person
✓A person that is subject to a court order declaring him/her a person of an unsound mind/ mentally; disordered /mentally defective.
✓A person that has been convicted of contravening the Liquor Act within the last three years;
✓ A person that has been convicted of an offence, the element of which is not inconsistent with the object of this Act for the past three years.

Police Officers and Liquor Inspectors shall on inspection of the Liquor Licensed Premises request the appointed Business Liquor Manager Certificates for verification of Compliance.

With Non-Compliance such Authority may;
✓ Issue a Monetary Fine
✓ Issue a Closure of the Business Premises
✓ Confiscate Liquor on the Business Premises
✓ Or Convict Criminally

2. To take over a liquor license without a transfer is Declared Illegal
What does a Section 34 and 63 consist off?

TAKING PROCESSION OF LIQUOR LICENSE BUSINESS BEFORE THE OPERATIONAL LIQUOR LICENSE HAS BEEN TRANSFERRED

Section 34 and 63 of the Mpumalanga Liquor Licensing Act (Act 5 of 2006)

Determines That;
No Company, Close Corporation, Co-Operation, Association, Partnership or Trust, shall be Licensed or remain Licensed if a person who in terms of subsection 1 and 2 of Section 34 (Disqualification) of the Act does not have;

✓A controlling interest in that Company, Close Corporation, Co-Operation, Association, Partnership or Trust; (Including Individuals and Sole Proprietors)
✓Is not the main financial beneficiary under such Company, Close Corporation, Co-Operation, Association, Partnership or Trust. (Including Individuals and Sole Proprietors)

Therefore, the Sale of all Liquor License Businesses may be a Restaurant, Liquor Store, Tavern, Bar and Grill, etc.
Sold as a Going Concern under any Sales Agreement; exp.
✓ Memorandum of Agreement
✓ Interest and Loan Account Agreement
✓ Deed of Sales Agreement

Remains Illegal in relation to Section 63 (Offences Regarding Licenses) of the Act; for no person who enters into or is a part of any sales agreement which seeks to either limit or extend the scope and extent of a License issued in terms of the Act, or any other requirements, terms and conditions pertaining to such License, shall be guilty of a criminal offence.

Police Officers and Liquor Inspectors may request proof of Ownership of the Liquor Licensed Business and investigate any verification of Compliance.

With Non-Compliance such Authority may;
✓ Issue a Monetary Fine;
✓ Issue a Closure of the Business Premises;
✓ Confiscate Liquor on the Business Premises;
✓ Or Convict Criminally.

3. Why do I need a Zoning Certificate for a Liquor License Application?
New Liquor License and/or Transfer of an Existing Liquor License

ZONING CERTIFICATE

The Land Use Rights of property play an important role in a Liquor License Application.

Ensuring that the Zoning of the proposed Liquor Business Premises allows for the retail of On and/or Off Consumption of Liquor is of utmost importance. Without the Zoning Certificate (Allowing for the Sale of Liquor) , such an application shall not be considered by the Local Town/Metropolitan Municipality and constitutes an invalid application by the Liquor Authority.

May it be for a New Liquor License Application and or for the Transfer of a Liquor License on the Sale of a Business as a Going Concern, it is advisable to start first and foremost with the Zoning Certificate to determine the scope and usage of the Property as per the Zoning Laws for Authority to consent and approve a Liquor License Application.

Understanding the Existing Rights on Property
South Africa’s Municipality and Metropolitan plan the process of land, with the result of the Zoning of property, which allows and/or prohibits certain uses of such land. This process regulates the subdivision of land, street plans, plans for public facilities and building regulations. This planning process is for the construction of schools, roads, sewage, water and electricity supply, policing, fire protection, businesses, and others.

Zoning
Zoning of a property is the regulation put in place to preserve the character of the area and in turn regulate health, safety, welfare, and morals, and limit nuisance disturbance to land users. Zoning must promote land use in the best interest of the occupants. It acts as a stabilizing factor in neighbourhoods and preserves the character of the community.

The essential purpose of Zoning is to segregate Residential, Agricultural, Commercial (business), and Industrial areas from one another. Regulations have been put into place to protect residential areas from encroachment by fuel/petrol stations, businesses causing a nuisance, factories, liquor outlets, and other disturbances. Factors taken into consideration are traffic, the character of neighbourhoods, the fitness of the land involved and the influence on property values.

The Zoning of a property regulates, among other things the nuisance and disturbances emanating from the use of a property. That is “An unreasonable, unwarranted or illegal use of property that infringes the rights of other people.” Therefore, the quiet enjoyment of a person’s property is invaded by a person, causing a nuisance without that individual actually physically invading your property. Such a burden can affect one’s health, morals, safety, welfare, comfort or convenience.

It is therefore important to ensure that the proposed property is correctly ZONED for the Application of a Liquor License.

When and How to Apply for Changes in Land-Use Rights on Your Property
The local authorities of cities and towns in South Africa are responsible for the management of land-use rights in their areas of control. To this end, they implement land-use schemes, which provide the rules and regulations for the permitted use and development of properties. If you want to change or add use rights to your specific property, you must apply to the local city council for permission to do so. This is done with the help of registered town planners.

Where to Find Out What Zoning Is Applicable to Your Property
Visit the city and/or town’s district-planning office or have professional town planners review the zoning map for the town or municipal area. The town planners will be able to tell you exactly in which zoning category your property falls, and which usage and development permissions are applicable to it. You may want to develop the property or utilise it for a purpose not allowed for in the zoning scheme relevant to the area. In this instance, you need to apply for consent usage or rezoning of the property to allow such business development or activities.

How to Apply for Additional Rights, Consent Use, or Changes in Zoning
The city and/or town council’s development-management division must approve the addition of the new or changed usage and development rights. You may, for instance, need to apply for permanent rezoning or only for occasional, or perhaps consent use. The town planners shall be able to assist in determining which application to submit.

Basic Explanation of Applicable Terms
– Re-Zoning Changes
Where the zoning does not allow for the development or usage of the property for what you have in mind, you must apply for zoning changes or rezoning category. This is needed when you want to make significant changes to the usage permissions for the property.

– Consent Usage – Additional to the Current Zoning
Consent usage is where the particular usage is allowed in the development-management scheme, subject to the approval of the city and/or town council. This provides you with additional usage permissions on the Zoning.

Where to Get Help
For a temporary variation of land use rights, you probably do not need the help of professional town planners. However, when it comes to rezoning applications, consent usage, or additional rights, it is best to seek professional assistance. Meetings with city-council officials, as well as site plans, impact studies, and public participation processes, must all be conducted. Town planners understand the processes and work with such applications on a daily basis.