Microdistillers Act, 2015 Hudak, Tim — Bill 157 (41st Parliament, 1st Session)

Bill 157, 41-1

Ontario — Bills

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Bill 157, Microdistillers Act, 2015

Hudak, Tim

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[41] Bill 157 Original (PDF)

Bill 157 2015

An Act to amend the

Liquor Control Act and the Liquor Licence Act

Her

Majesty, by and with the advice and consent of the Legislative Assembly of the

Province of Ontario, enacts as follows:

Liquor Control Act

(1) Section

1 of the Liquor Control Act is amended by adding

the following definition:

"microdistiller" means a manufacturer of spirits that is

a microdistiller for the purposes of

section 22.1 of the Liquor

Licence Act ; ("microdistillateur")

(2) The Act is amended by adding the

following section:

Limit

on mark-up on sale of spirits

3.0.1

(1) Despite

anything in subsection 3 (1) or the regulations made under this Act, the Board

shall not set a mark-up on the sale of any class or type of spirits

manufactured by microdistillers, whether at a government store or otherwise,

that exceeds the mark-up that is equal to the tax that applies to beer

manufactured by a beer manufacturer that is a microbrewer under

section 22 of

the Alcohol and Gaming Regulation and Public

Protection Act, 1996 .

liability to pay

(2) A microdistiller is not liable to pay

any portion of a mark-up on the sale of spirits, whether at a government store

or otherwise, that the Board sets in contravention of subsection (1).

Liquor Licence Act

(1) The

Liquor Licence Act is amended by adding the

following section:

Authority

to hold any or all licences

5.0.1 Despite any provision

in this or any other Act, or a regulation made under this or any other Act, a

person is permitted to hold any or all licences under this Act that relate to

the manufacture, sale or delivery of spirits, beer or Ontario wine, subject to

any requirements as may be prescribed.

(2) The Act is amended by adding the

following sections:

Special rules re Microdistillers

Microdistiller

22.1

(1) For

the purposes of this

section and sections 22.2 and 22.3, a manufacturer of spirits

is a microdistiller for a calendar year if all of the following circumstances

exist:

1. The

manufacturer holds a licence to sell its spirits to the Liquor Control Board of

Ontario under

section 22.

2. The

manufacturer's worldwide production of spirits was not more than 625,000

litres in the preceding production year or, if this is the first production

year in which it manufactures spirits, its worldwide production of spirits is

expected to be not more than 625,000 litres.

3. In the

preceding production year, the manufacturer was not a party to any agreement or

other arrangement pursuant to which any other manufacturer of spirits who is

not a microdistiller agreed to manufacture spirits for it.

4. In

the preceding production year, the manufacturer was not a party to any

agreement or other arrangement pursuant to which it agreed to manufacture spirits

for any other manufacturer of spirits who was not a microdistiller. However,

the manufacturer may have been a party to an agreement or other arrangement pursuant

to which it agreed to manufacture spirits for another manufacturer of spirits

who would have been a microdistiller in the calendar year if paragraph 3 did

not apply to that other manufacturer of spirits.

5. Every

affiliate that the manufacturer had that manufactured spirits in the preceding

production year was a microdistiller.

Application

of Alcohol and Gaming Regulation and Public Protection

Act, 1996

(2) Subsections 17 (5) and (6) and 22

(3.1) and (4) of the Alcohol and Gaming Regulation and Public

Protection Act, 1996 apply, with necessary modifications, for the

purposes of determining whether a manufacturer of spirits is a microdistiller.

List

of microdistillers

(3) The Minister shall compile annually and make available to the public for each

calendar year a list containing the names of manufacturers of spirits that are

microdistillers for the calendar year and the names of the brands of spirits

they manufacture.

Definition

(4) In this section,

"production year" means, in relation to a calendar year,

the 12-month period that ends on the last day of October immediately before the

beginning of the calendar year.

Sale

and delivery of spirits

22.2

(1) A

microdistiller may sell and deliver its spirits to a person who holds a licence

to sell liquor or a permit issued under this Act.

Same

(2) Subsection (1) applies despite any

restriction imposed under this or any other Act or under any agreement entered

into under this or any other Act.

Manufacturer's

licence to sell spirits onsite

22.3

(1) Despite

subsection 6 (4), a microdistiller who holds a manufacturer's licence to sell

spirits to the Liquor Control Board of Ontario may obtain a licence that permits

the sale of spirits manufactured by the microdistiller in accordance with this

section.

Requirements

of licence

(2) A licence may be issued under

subsection (1) if all of the following circumstances exist:

1. The

licence applies only to areas under the sole control of the manufacturer that

are located on or immediately adjacent to a manufacturing site of the

manufacturer.

2. The

sale is primarily aimed at promoting the manufacturer's product and either

providing an enhanced tourist experience or fulfilling an educational purpose.

3. The

council of the municipality, if any, has passed a resolution in support of the

issuance of the licence.

Conditions

of licence

(3) The following are conditions of a

licence issued under this

section that the licence holder must comply with:

1. The

spirits are served only in quantities equal to or less than 43 ml (1.5 oz.).

2. T he spirits are sold and served no earlier than 11 a.m.

and no later than 9 p.m. on any day.

Regulations

(4) If, under the

regulations, a holder of a manufacturer's licence to sell beer or wine to the

Liquor Control Board of Ontario is permitted to obtain a licence similar to a

licence issued under this section, any restrictions or exemptions that apply to

such a licence under the regulations also apply to a licence issued under this

section.

Definition

(5) In this section,

"manufacturing

site" means property that is used by a

manufacturer primarily for the distillation and production of spirits.

Commencement and Short

Title

Commencement

3. This

Act comes into force six months after the day it receives Royal Assent.

Short

title

4. The

short title of this Act is the Microdistillers Act, 2015 .

EXPLANATORY NOTE

The

Bill amends the Liquor Control Act and the Liquor Licence Act .

Liquor Control Act

The

Liquor Control Act is amended by adding a new definition of

"microdistiller". (section 1 of the Act)

The

Act is also amended to provide that the Liquor Control Board of Ontario shall

not set a mark-up on the sale of spirits manufactured by microdistillers that

exceeds the mark-up that is equal to the tax that applies to microbrewers under

the Alcohol and Gaming Regulation and Public Protection

Act, 1996 . (new

section 3.0.1 of the Act)

Liquor Licence Act

The

Liquor Licence Act is amended in the following

ways:

person is permitted to hold any or all licences under the Act that relate to

the manufacture, sale or delivery of spirits, beer or Ontario wine, subject to

any prescribed requirements. (new

section 5.0.1 of the Act)

manufacturer of spirits is a microdistiller if, among other things, it holds a

licence to sell liquor to the Liquor Control Board of Ontario and produces no

more than 625,000 litres of spirits annually. (new

section 22.1 of the Act)

Microdistillers

are permitted to sell and deliver their spirits to persons who hold a licence

or permit to sell liquor issued under the Act. (new

section 22.2 of the Act)

Currently,

regulations under the Act permit certain manufacturers of beer and Ontario wine

to obtain a licence to sell their beer and wine by the glass. The Act is

amended to permit manufacturers of spirits who are microdistillers to sell

their spirits by the glass. (new

section 22.3 of the Act)

Date Bill stage Activity Committee

December 10, 2015

First Reading

Carried

Debates and Progress

First Reading

December 10, 2015

Committee

Second Reading

Committee

Third Reading

Royal Assent

Acts affected - Bill 157

Most Ontario public acts are available electronically; to view copies of the Acts to be amended by this bill visit e-laws

Liquor Control Act

Liquor Licence Act

Legislative Assembly of Ontario

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Document details

Collection	Ontario — Bills
Citation	Bill 157, 41-1
Type	bill
Volume / chapter	p41 s1 bill 157 html
Language	en
Format	html
Source	PROVINCIAL
Identifier	9701482e9be02da6a858d521f86ba56dff5f6ff6

Source file is stored in the law ingest library (html).