chapter 12 regulatory requirements. copyright © 2007 by nelson, a division of thomson canada...

Chapter 12 Regulatory Requirements

Copyright © 2007 by Nelson, a division of Copyright © 2007 by Nelson, a division of Thomson Canada LimitedThomson Canada Limited

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Summary of Objectives

To identify bylaws, codes and statutes To identify bylaws, codes and statutes relevant to hospitality businessesrelevant to hospitality businesses

To examine licensing procedures and To examine licensing procedures and requirementsrequirements

To discuss consumer protection To discuss consumer protection legislationlegislation

To identify duties of hospitality industry To identify duties of hospitality industry operators associated with the tax systemoperators associated with the tax system


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Building Codes

The enforcement of provincial The enforcement of provincial building codes is delegated to the building codes is delegated to the municipalities formunicipalities for

• building permitsbuilding permits

• building inspectionsbuilding inspections

• occupancy permitsoccupancy permits


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Fire Codes

There is provincial and territorial There is provincial and territorial regulation and inspection of regulation and inspection of

• constructionconstruction

• access to exitsaccess to exits

• smoke alarmssmoke alarms

• fire extinguishersfire extinguishers


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Health and Food Regulations Federal statutes include the Federal statutes include the Food and Food and

Drug ActDrug Act, the , the Meat Inspection ActMeat Inspection Act, , and the and the Agricultural Products ActAgricultural Products Act

The The Sale of Goods ActSale of Goods Act is the relevant is the relevant provincial and territorial statuteprovincial and territorial statute

Municipalities assist in enforcementMunicipalities assist in enforcement


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Environmental Protection The The Hazardous Products ActHazardous Products Act

(federal) – involves the handling (federal) – involves the handling and transportation of hazardous or and transportation of hazardous or toxic wastetoxic waste

There is also provincial and There is also provincial and territorial legislation for the storage territorial legislation for the storage and disposal of such materialand disposal of such material


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Intellectual Property

The federal Copyright Act protects the The federal Copyright Act protects the authors and creators of the following authors and creators of the following subject areas and may require that subject areas and may require that user fee payments be made to them.user fee payments be made to them.

• MusicMusic

• Art workArt work

• MoviesMovies

• BroadcastsBroadcasts

• Printed materialsPrinted materials


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Municipal Bylaws and Zoning These laws govern residential and These laws govern residential and

commercial use of propertycommercial use of property

They also govern business activities They also govern business activities such as hours of operation or such as hours of operation or number of patrons permitted per number of patrons permitted per square footsquare foot

Public roads and parks are also Public roads and parks are also regulated by these lawsregulated by these laws


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Licences and Permits

A licence is a government authorization A licence is a government authorization to do something. The licensee must to do something. The licensee must achieve at least minimum standards to achieve at least minimum standards to be granted the licence in the protection be granted the licence in the protection of the public interest.of the public interest.

A permit is also a government A permit is also a government authorization but is less involved with authorization but is less involved with the meeting of specific requirements the meeting of specific requirements than licensing.than licensing.


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Granting Bodies

These bodies are the creations of These bodies are the creations of enabling legislation and are enabling legislation and are governed by the rules of governed by the rules of administrative law:administrative law:

• BoardsBoards

• TribunalsTribunals

• Commissions Commissions


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Public Notice of Licence Applications The relevant board advertises the The relevant board advertises the

time and place of a hearing on time and place of a hearing on the application in a local the application in a local newspaper.newspaper.

This procedure gives the public This procedure gives the public an opportunity for input into the an opportunity for input into the board’s decision.board’s decision.


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Grounds for Refusal

An applicant’s technical qualifications An applicant’s technical qualifications are examined by the board.are examined by the board.

The character of the applicant may or The character of the applicant may or may not be relevant to the application may not be relevant to the application for a licence. For example:for a licence. For example:

• An applicant’s criminal record for an An applicant’s criminal record for an offence related to the area of the offence related to the area of the applicationapplication

• No criminal record on the part of the No criminal record on the part of the applicant but known links to criminalsapplicant but known links to criminals


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Public Interest

An application for a licence may An application for a licence may be refused if it is in the public be refused if it is in the public interest to do so.interest to do so.

Licences may also be suspended Licences may also be suspended or revoked based on legitimate or revoked based on legitimate complaints or follow up complaints or follow up inspections.inspections.


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Decisions and Appeals

Usually an internal review of the Usually an internal review of the decision process is provided by boardsdecision process is provided by boards

An application for judicial review can be An application for judicial review can be based only upon the following grounds:based only upon the following grounds:

• An error of jurisdictionAn error of jurisdiction

• An error of law on the face of the recordAn error of law on the face of the record

• An error of natural justiceAn error of natural justice


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Responsibilities of Licensee An applicant usually qualifies for a An applicant usually qualifies for a

licence by meeting criteria and paying licence by meeting criteria and paying fees.fees.

Renewal of the licence should be Renewal of the licence should be carried out prior to expiry.carried out prior to expiry.

Transfer of a licence is not automatic Transfer of a licence is not automatic and therefore it should be made a and therefore it should be made a condition of a sale.condition of a sale.


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Liquor Licences

Provincially-regulated licences exist for Provincially-regulated licences exist for

• mini bar licencesmini bar licences

• arena licencesarena licences

• special occasion licencesspecial occasion licences

• delivery licencesdelivery licences

• manufacturer licencesmanufacturer licences

• manufacturer’s agent licencesmanufacturer’s agent licences

• sales licencessales licences


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Consumer Protection

Historically, Historically, caveat emptorcaveat emptor applied applied

Now, consumer protection Now, consumer protection legislation protects the interests of legislation protects the interests of the consumer:the consumer:

• Goods must be fit for the stated Goods must be fit for the stated purposepurpose

• Goods must be of merchantable Goods must be of merchantable qualityquality


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Competition Act

This is a federal statute giving the This is a federal statute giving the government broad investigative powersgovernment broad investigative powers

It criminalizes such practices asIt criminalizes such practices as

• price fixingprice fixing

• restraint of traderestraint of trade

• false or misleading advertisingfalse or misleading advertising

• predatory pricingpredatory pricing


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Other Federal Laws

Consumer protection is further Consumer protection is further extended by extended by

• the the Hazardous Products ActHazardous Products Act

• the the Pest Control Products ActPest Control Products Act

• the the Explosives ActExplosives Act

• the the Motor Vehicle Safety ActMotor Vehicle Safety Act

• the the Food and Drugs ActFood and Drugs Act


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Taxation

Residents of Canada are taxed on Residents of Canada are taxed on income earned inside and outside income earned inside and outside Canada.Canada.

Non-residents are taxed on Non-residents are taxed on Canadian incomeCanadian income


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Statutory Remittances for Employees Employers must remit at source Employers must remit at source

on behalf of employeeson behalf of employees

• federal and provincial or territorial federal and provincial or territorial income taxincome tax

• employment insurance premiumsemployment insurance premiums

• CPP or QPP contributionsCPP or QPP contributions


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GST and PST

Goods and services tax must be paid Goods and services tax must be paid by suppliers engaged in commercial by suppliers engaged in commercial activity, unless they are exempt.activity, unless they are exempt.

Provincial sales tax applies to retail Provincial sales tax applies to retail activity and the rates vary. Alberta activity and the rates vary. Alberta does not levy PST.does not levy PST.

Municipalities levy property taxes as Municipalities levy property taxes as well as taxes on licensed businesses.well as taxes on licensed businesses.


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Directors’ Liability

Directors may be jointly and Directors may be jointly and severally liable for the torts or severally liable for the torts or other wrongs of a company, other wrongs of a company, including liability forincluding liability for

• unpaid employee wagesunpaid employee wages

• unpaid taxesunpaid taxes

chapter 12 regulatory requirements. copyright © 2007 by nelson, a division of thomson canada...

Documents

federal copyright act

enforcement slide

material slide

tax system slide

drug act

territorial legislation

meat inspection act

sale of goods act